AGCO (AGCO) Downgraded by Zacks Investment Research

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AGCO (NYSE:AGCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.

According to Zacks, “For 2018, AGCO expects its net sales will be $9.3 billion. The company expects adjusted earnings per share (EPS) to be around $3.70 for 2018. However, its performance might be hurt by low commodity prices. Further, demand in Western Europe to be relatively flat in 2018 compared with 2017 due to the impact of expected softening economics in the dairy and livestock sector. Rising steel prices resulting from tariffs will impact its results. Elevated expenses are likely to hurt the company's earnings. The stock has underperformed the industry, over the past year.”

Other analysts have also issued reports about the company. Deutsche Bank reissued a “buy” rating on shares of AGCO in a report on Monday, September 24th. Jefferies Financial Group reissued a “hold” rating and issued a $70.00 price objective on shares of AGCO in a report on Friday, July 20th. ValuEngine raised AGCO from a “sell” rating to a “hold” rating in a report on Tuesday, October 2nd. OTR Global lowered AGCO to a “$60.18” rating in a report on Wednesday, July 18th. Finally, JPMorgan Chase & Co. lowered AGCO from a “neutral” rating to an “underweight” rating and set a $55.00 price objective for the company. in a report on Monday, August 13th. Four research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $71.00.

Shares of NYSE AGCO traded up $0.63 during midday trading on Tuesday, reaching $56.34. 4,574 shares of the company’s stock were exchanged, compared to its average volume of 724,015. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.63 and a current ratio of 1.42. The firm has a market cap of $4.81 billion, a price-to-earnings ratio of 18.66, a PEG ratio of 1.02 and a beta of 0.70. AGCO has a 52-week low of $54.47 and a 52-week high of $75.95.

AGCO (NYSE:AGCO) last announced its quarterly earnings data on Tuesday, July 31st. The industrial products company reported $1.32 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.28 by $0.04. The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.45 billion. AGCO had a return on equity of 9.31% and a net margin of 2.44%. AGCO’s quarterly revenue was up 17.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.15 earnings per share. As a group, research analysts predict that AGCO will post 3.78 EPS for the current year.

A number of hedge funds have recently modified their holdings of the business. Andra AP fonden boosted its stake in AGCO by 25.9% in the third quarter. Andra AP fonden now owns 104,400 shares of the industrial products company’s stock valued at $6,346,000 after acquiring an additional 21,500 shares during the period. Scout Investments Inc. boosted its stake in AGCO by 4.6% in the third quarter. Scout Investments Inc. now owns 280,144 shares of the industrial products company’s stock valued at $17,030,000 after acquiring an additional 12,315 shares during the period. Bank of Montreal Can boosted its stake in AGCO by 169.2% in the third quarter. Bank of Montreal Can now owns 80,981 shares of the industrial products company’s stock valued at $4,923,000 after acquiring an additional 50,903 shares during the period. CHICAGO TRUST Co NA acquired a new position in AGCO in the third quarter valued at approximately $244,000. Finally, Personal Capital Advisors Corp boosted its stake in AGCO by 54.8% in the third quarter. Personal Capital Advisors Corp now owns 10,151 shares of the industrial products company’s stock valued at $617,000 after acquiring an additional 3,594 shares during the period. Institutional investors own 84.85% of the company’s stock.

About AGCO

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company offers high horsepower tractors for larger farms, primarily for row crop production; 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, and residential uses.

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