AGCO (NYSE:AGCO) Shares Gap Down Following Weak Earnings

AGCO Co. (NYSE:AGCO) gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $102.05, but opened at $95.84. AGCO shares last traded at $95.66, with a volume of 273,724 shares changing hands.

The industrial products company reported $2.53 earnings per share for the quarter, missing analysts’ consensus estimates of $2.90 by ($0.37). AGCO had a return on equity of 21.17% and a net margin of 3.13%. The company had revenue of $3.25 billion for the quarter, compared to analysts’ expectations of $3.48 billion. During the same quarter in the prior year, the company earned $4.29 EPS. The firm’s quarterly revenue was down 15.1% on a year-over-year basis.

AGCO Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Thursday, August 15th will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 1.27%. The ex-dividend date of this dividend is Thursday, August 15th. AGCO’s payout ratio is 7.85%.

Wall Street Analyst Weigh In

AGCO has been the subject of several recent analyst reports. Raymond James began coverage on shares of AGCO in a research note on Friday, June 28th. They set a “market perform” rating for the company. Citigroup initiated coverage on AGCO in a report on Wednesday, June 26th. They set a “neutral” rating and a $108.00 price objective for the company. The Goldman Sachs Group dropped their target price on AGCO from $127.00 to $112.00 and set a “neutral” rating on the stock in a research note on Thursday, July 11th. Oppenheimer decreased their price objective on shares of AGCO from $133.00 to $132.00 and set an “outperform” rating for the company in a research report on Monday, July 22nd. Finally, UBS Group dropped their target price on shares of AGCO from $107.00 to $104.00 and set a “neutral” rating on the stock in a research report on Wednesday. Six analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $121.20.

Institutional Trading of AGCO

A number of hedge funds have recently modified their holdings of AGCO. Rakuten Securities Inc. purchased a new position in AGCO during the fourth quarter worth approximately $26,000. FinTrust Capital Advisors LLC increased its position in shares of AGCO by 121.9% during the first quarter. FinTrust Capital Advisors LLC now owns 213 shares of the industrial products company’s stock worth $26,000 after purchasing an additional 117 shares in the last quarter. Manchester Capital Management LLC lifted its holdings in AGCO by 93.2% in the 1st quarter. Manchester Capital Management LLC now owns 228 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 110 shares in the last quarter. LRI Investments LLC acquired a new stake in AGCO during the 1st quarter worth $30,000. Finally, Allworth Financial LP grew its holdings in shares of AGCO by 72.3% during the fourth quarter. Allworth Financial LP now owns 286 shares of the industrial products company’s stock worth $35,000 after buying an additional 120 shares in the last quarter. Hedge funds and other institutional investors own 78.80% of the company’s stock.

AGCO Price Performance

The firm has a market capitalization of $6.82 billion, a price-to-earnings ratio of 6.39, a PEG ratio of 0.90 and a beta of 1.27. The stock’s 50-day moving average price is $100.90 and its 200 day moving average price is $110.88. The company has a quick ratio of 1.09, a current ratio of 1.52 and a debt-to-equity ratio of 0.89.

AGCO Company Profile

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses.