Agco Corp. (AGCO) Downgraded by Zacks Investment Research to “Sell”
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.”
Other equities research analysts have also issued research reports about the company. Jefferies Group reissued a buy rating on shares of Agco Corp. in a research report on Friday, August 5th. Barclays PLC reaffirmed an equal weight rating and set a $43.00 price target on shares of Agco Corp. in a research report on Tuesday, July 12th. Morgan Stanley set a $54.00 price target on Agco Corp. and gave the stock a hold rating in a research report on Friday, August 5th. Deutsche Bank AG assumed coverage on Agco Corp. in a research report on Tuesday, September 6th. They set a hold rating and a $54.00 price target on the stock. Finally, Credit Suisse Group AG reaffirmed a hold rating and set a $53.00 price target on shares of Agco Corp. in a research report on Tuesday, August 30th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and one has assigned a buy rating to the stock. Agco Corp. has an average rating of Hold and a consensus price target of $48.75.
Agco Corp. (NYSE:AGCO) traded up 1.29% during midday trading on Tuesday, hitting $49.52. The stock had a trading volume of 282,047 shares. The firm has a market capitalization of $4.02 billion, a price-to-earnings ratio of 22.26 and a beta of 1.32. Agco Corp. has a 1-year low of $42.40 and a 1-year high of $56.00. The firm has a 50-day moving average price of $47.93 and a 200-day moving average price of $49.76.
Agco Corp. (NYSE:AGCO) last announced its earnings results on Thursday, August 4th. The company reported $1.02 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.92 by $0.10. Agco Corp. had a return on equity of 7.72% and a net margin of 2.58%. The business had revenue of $2 billion for the quarter, compared to analyst estimates of $1.88 billion. During the same quarter last year, the firm earned $1.25 EPS. Agco Corp.’s revenue for the quarter was down 3.6% compared to the same quarter last year. On average, equities research analysts anticipate that Agco Corp. will post $2.31 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Monday, August 15th were paid a $0.13 dividend. The ex-dividend date of this dividend was Thursday, August 11th. This represents a $0.52 annualized dividend and a yield of 1.06%. Agco Corp.’s dividend payout ratio (DPR) is presently 23.64%.
A number of hedge funds have recently added to or reduced their stakes in AGCO. Sii Investments Inc. WI purchased a new stake in Agco Corp. during the second quarter valued at about $224,000. Seven Eight Capital LLC bought a new stake in Agco Corp. during the first quarter worth $226,000. Huntington Asset Advisors Inc. bought a new stake in Agco Corp. during the first quarter worth $231,000. Gratus Capital LLC bought a new stake in Agco Corp. during the second quarter worth $240,000. Finally, Boston Advisors LLC bought a new stake in Agco Corp. during the second quarter worth $241,000. 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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