According to Zacks, “AGCO expects weak global demand for farm equipment to hamper its 2016 sales and earnings. Industry demand for farm equipment is likely to weaken in all regions for full-year 2016 compared to 2015, resulting from lower commodity prices and reduced farm income levels. It marginally raised net sales outlook to $7.2 billion for full–year 2016, while maintaining its earnings per share guidance of around $2.30. Gross and operating margins will be below 2015 levels due to the effect of lower sales and production volumes along with a weaker sales mix. Moreover, foreign currency swings will hurt growth.”
Several other equities research analysts have also recently weighed in on the company. Credit Suisse Group AG restated a hold rating and set a $53.00 target price on shares of Agco Corp. in a report on Tuesday, August 30th. Citigroup Inc. dropped their target price on Agco Corp. from $55.00 to $53.00 and set a neutral rating for the company in a report on Friday, July 15th. Jefferies Group restated a buy rating on shares of Agco Corp. in a report on Friday, August 5th. Piper Jaffray Cos. dropped their target price on Agco Corp. from $47.00 to $44.00 and set a neutral rating for the company in a report on Thursday, August 25th. Finally, Deutsche Bank AG initiated coverage on Agco Corp. in a report on Tuesday, September 6th. They set a hold rating and a $54.00 target price for the company. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and one has issued a buy rating to the stock. Agco Corp. has a consensus rating of Hold and an average target price of $48.75.
Agco Corp. (NYSE:AGCO) opened at 50.06 on Tuesday. Agco Corp. has a 52-week low of $42.40 and a 52-week high of $56.00. The firm has a 50-day moving average price of $48.07 and a 200 day moving average price of $49.76. The stock has a market cap of $4.06 billion, a PE ratio of 22.50 and a beta of 1.32.
Agco Corp. (NYSE:AGCO) last issued its earnings results on Thursday, August 4th. The company reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.10. The company earned $2 billion during the quarter, compared to analysts’ expectations of $1.88 billion. Agco Corp. had a return on equity of 7.72% and a net margin of 2.58%. Agco Corp.’s quarterly revenue was down 3.6% compared to the same quarter last year. During the same period in the prior year, the business posted $1.25 EPS. On average, analysts forecast that Agco Corp. will post $2.31 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Monday, August 15th were issued a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 1.04%. The ex-dividend date of this dividend was Thursday, August 11th. Agco Corp.’s dividend payout ratio (DPR) is currently 23.64%.
A number of large investors have recently added to or reduced their stakes in AGCO. Mason Street Advisors LLC purchased a new position in shares of Agco Corp. during the second quarter valued at about $1,524,000. Royal Bank of Canada raised its position in shares of Agco Corp. by 110.1% in the second quarter. Royal Bank of Canada now owns 309,793 shares of the company’s stock valued at $14,599,000 after buying an additional 162,373 shares in the last quarter. Calvert Investment Management Inc. raised its position in shares of Agco Corp. by 2.7% in the second quarter. Calvert Investment Management Inc. now owns 5,702 shares of the company’s stock valued at $269,000 after buying an additional 148 shares in the last quarter. Schwab Charles Investment Management Inc. raised its position in shares of Agco Corp. by 7.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 218,290 shares of the company’s stock valued at $10,289,000 after buying an additional 14,713 shares in the last quarter. Finally, Amalgamated Bank raised its position in shares of Agco Corp. by 3.6% in the second quarter. Amalgamated Bank now owns 9,477 shares of the company’s stock valued at $455,000 after buying an additional 332 shares in the last quarter. Institutional investors and hedge funds own 88.67% of the company’s stock.
Agco Corp. Company Profile
AGCO Corporation is a manufacturer and distributor of agricultural equipment and related replacement parts around the world. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage, implements, and grain storage and protein production systems.
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