Agco Corp. (AGCO) Downgraded to “Sell” at Zacks Investment Research
Agco Corp. (NYSE:AGCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
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 weighed in on the stock. Morgan Stanley set a $54.00 target price on shares of Agco Corp. and gave the stock a “hold” rating in a report on Saturday, September 17th. Deutsche Bank AG initiated coverage on shares of Agco Corp. in a research report on Tuesday, September 6th. They set a “hold” rating and a $54.00 price objective for the company. Credit Suisse Group AG reissued a “hold” rating and set a $53.00 price objective on shares of Agco Corp. in a research report on Tuesday, August 30th. Piper Jaffray Cos. lowered their price objective on shares of Agco Corp. from $47.00 to $44.00 and set a “neutral” rating for the company in a research report on Thursday, August 25th. Finally, Jefferies Group reissued a “buy” rating on shares of Agco Corp. in a research report on Friday, August 5th. 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. The stock presently has an average rating of “Hold” and an average target price of $48.75.
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Shares of Agco Corp. (NYSE:AGCO) opened at 50.20 on Tuesday. The firm has a market cap of $4.07 billion, a price-to-earnings ratio of 22.56 and a beta of 1.32. The company has a 50 day moving average of $48.17 and a 200 day moving average of $49.74. Agco Corp. has a 1-year low of $42.40 and a 1-year high of $56.00.
Agco Corp. (NYSE:AGCO) last posted its earnings results on Thursday, August 4th. The company reported $1.02 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.92 by $0.10. The company had revenue of $2 billion for the quarter, compared to analyst estimates of $1.88 billion. Agco Corp. had a net margin of 2.58% and a return on equity of 7.72%. The business’s revenue for the quarter was down 3.6% compared to the same quarter last year. During the same period last year, the business posted $1.25 earnings per share. On average, equities analysts forecast that Agco Corp. will post $2.31 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Monday, August 15th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.04%. The ex-dividend date of this dividend was Thursday, August 11th. Agco Corp.’s dividend payout ratio is currently 23.64%.
Hedge funds have recently made changes to their positions in the stock. Seven Eight Capital LLC purchased a new stake in shares of Agco Corp. during the first quarter worth approximately $226,000. Huntington Asset Advisors Inc. purchased a new stake in shares of Agco Corp. during the first quarter worth approximately $231,000. Sii Investments Inc. WI purchased a new stake in shares of Agco Corp. during the second quarter worth approximately $224,000. Gratus Capital LLC purchased a new stake in shares of Agco Corp. during the second quarter worth approximately $240,000. Finally, Boston Advisors LLC purchased a new stake in shares of Agco Corp. during the second quarter worth approximately $241,000. Hedge funds and other institutional investors 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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