Deere & Company [DE] gain 15.14% so far this year. What now?

Deere & Company [NYSE: DE] gained 4.40% or 8.4 points to close at $199.50 with a heavy trading volume of 6434058 shares. The company report on August 21, 2020 that Deere Reports Third Quarter Net Income of $811 Million.

Deere & Company (NYSE: DE) reported net income of $811 million for the third quarter ended August 2, 2020, or $2.57 per share, compared with net income of $899 million , or $2.81 per share, for the quarter ended July 28, 2019. For the first nine months of the year, net income attributable to Deere & Company was $1.993 billion , or $6.30 per share, compared with $2.532 billion , or $7.87 per share, for the same period last year.

Worldwide net sales and revenues decreased 11 percent, to $8.925 billion , for the third quarter of 2020 and declined 12 percent, to $25.809 billion , for nine months. Net sales of the equipment operations were $7.859 billion for the quarter and $22.612 billion for nine months, compared with $8.969 billion and $26.182 billion last year.

It opened the trading session at $196.76, the shares rose to $202.95 and dropped to $196.00, the range by which the price of stock traded the whole day. The daily chart for DE points out that the company has recorded 16.08% gains over the past six months. However, it is still -87.96% lower than its most recent low trading price.

If we look at the average trading volume of 1.47M shares, DE reached to a volume of 6434058 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Deere & Company [DE]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DE shares is $184.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DE stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Deere & Company shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on August 13, 2020. The new note on the price target was released on August 12, 2020, representing the official price target for Deere & Company stock. Previously, the target price had yet another raise to $189, while Robert W. Baird analysts kept a Outperform rating on DE stock.

The Average True Range (ATR) for Deere & Company is set at 4.33, with the Price to Sales ratio for DE stock in the period of the last 12 months amounting to 1.62. The Price to Book ratio for the last quarter was 5.27, with the Price to Cash per share for the same quarter was set at 29.70. Price to Free Cash Flow for DE in the course of the last twelve months was 16.38.

Trading performance analysis for DE stock

Deere & Company [DE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.38. With this latest performance, DE shares gained by 12.88% in over the last four-week period, additionally plugging by 16.08% over the last 6 months – not to mention a rise of 28.40% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DE stock in for the last two-week period is set at 77.00, with the RSI for the last a single of trading hit 78.67, and the three-weeks RSI is set at 72.60 for Deere & Company [DE]. The present Moving Average for the last 50 days of trading for this stock 171.25, while it was recorded at 193.54 for the last single week of trading, and 160.29 for the last 200 days.

Deere & Company [DE]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Deere & Company [DE] shares currently have an operating margin of +14.44 and a Gross Margin at +28.02. Deere & Company’s Net Margin is presently recorded at +8.29.

Return on Total Capital for DE is now 10.27, given the latest momentum, and Return on Invested Capital for the company is 8.12. Return on Equity for this stock inclined to 28.66, with Return on Assets sitting at 4.55. When it comes to the capital structure of this company, Deere & Company [DE] has a Total Debt to Total Equity ratio set at 397.21. Additionally, DE Total Debt to Total Capital is recorded at 79.89, with Total Debt to Total Assets ending up at 62.09. Long-Term Debt to Equity for the company is recorded at 264.86, with the Long-Term Debt to Total Capital now at 53.27.

Reflecting on the efficiency of the workforce at the company, Deere & Company [DE] managed to generate an average of $44,259 per employee. Receivables Turnover for the company is 5.81 with a Total Asset Turnover recorded at a value of 0.55.

Deere & Company [DE]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Deere & Company posted 2.14/share EPS, while the average EPS was predicted by analysts to be reported at 2.13/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Deere & Company go to 2.55%.

An analysis of insider ownership at Deere & Company [DE]

There are presently around $43,183 million, or 82.10% of DE stock, in the hands of institutional investors. The top three institutional holders of DE stocks are: VANGUARD GROUP INC with ownership of 23,680,065, which is approximately -2.091% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 19,127,647 shares of the stock with an approximate value of $3.82 billion in DE stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $3.2 billion in DE stock with ownership of nearly 0.892% of the company’s market capitalization.

Positions in Deere & Company stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 495 institutional holders increased their position in Deere & Company [NYSE:DE] by around 14,240,017 shares. Additionally, 538 investors decreased positions by around 11,508,774 shares, while 246 investors held positions by with 190,706,400 shares. The mentioned changes placed institutional holdings at 216,455,191 shares, according to the latest SEC report filing. DE stock had 98 new institutional investments in for a total of 633,786 shares, while 84 institutional investors sold positions of 2,072,370 shares during the same period.

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