AGCO (NYSE:AGCO) Trading Down 4.6% Following Weak Earnings

Shares of AGCO Co. (NYSE:AGCO) fell 4.6% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $93.30 and last traded at $93.38. 135,831 shares were traded during mid-day trading, a decline of 82% from the average session volume of 757,237 shares. The stock had previously closed at $97.87.

The industrial products company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $1.08 by ($0.40). AGCO had a return on equity of 21.17% and a net margin of 3.13%. The firm had revenue of $2.60 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same period in the prior year, the business earned $3.97 EPS. AGCO’s quarterly revenue was down 24.8% on a year-over-year basis.

AGCO Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Friday, November 15th will be paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date of this dividend is Friday, November 15th. AGCO’s dividend payout ratio is presently 20.71%.

Analyst Ratings Changes

A number of brokerages recently weighed in on AGCO. BMO Capital Markets began coverage on shares of AGCO in a research note on Friday, August 9th. They set a “market perform” rating and a $96.00 target price for the company. Robert W. Baird reduced their price target on shares of AGCO from $139.00 to $129.00 and set an “outperform” rating for the company in a report on Wednesday, July 31st. JPMorgan Chase & Co. reduced their price target on shares of AGCO from $130.00 to $115.00 and set an “overweight” rating for the company in a report on Wednesday, July 31st. StockNews.com cut shares of AGCO from a “hold” rating to a “sell” rating in a report on Thursday, August 1st. Finally, Oppenheimer reduced their price target on shares of AGCO from $131.00 to $111.00 and set an “outperform” rating for the company in a report on Wednesday. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $114.40.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in AGCO by 11.6% during the first quarter. Vanguard Group Inc. now owns 7,565,114 shares of the industrial products company’s stock worth $930,660,000 after purchasing an additional 784,617 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in AGCO by 1.7% during the second quarter. Victory Capital Management Inc. now owns 3,699,964 shares of the industrial products company’s stock worth $362,152,000 after purchasing an additional 63,432 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in AGCO by 17.4% during the second quarter. Dimensional Fund Advisors LP now owns 2,259,699 shares of the industrial products company’s stock worth $221,187,000 after purchasing an additional 335,092 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in AGCO by 28.0% during the second quarter. Massachusetts Financial Services Co. MA now owns 1,791,202 shares of the industrial products company’s stock worth $175,323,000 after purchasing an additional 391,591 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in AGCO by 53.0% during the second quarter. AQR Capital Management LLC now owns 1,747,954 shares of the industrial products company’s stock worth $171,090,000 after purchasing an additional 605,509 shares during the last quarter. 78.80% of the stock is currently owned by hedge funds and other institutional investors.

AGCO Trading Up 4.7 %

The firm has a market capitalization of $7.05 billion, a PE ratio of 16.88, a PEG ratio of 0.94 and a beta of 1.25. The firm’s fifty day moving average is $95.60 and its two-hundred day moving average is $99.53. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.52 and a quick ratio of 0.72.

About AGCO

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.