AGCO Corporation (NYSE:AGCO) Sees Large Increase in Short Interest

AGCO Corporation (NYSE:AGCO) was the target of a significant growth in short interest in October. As of October 15th, there was short interest totaling 2,790,000 shares, a growth of 36.1% from the September 30th total of 2,050,000 shares. Currently, 4.5% of the company’s stock are short sold. Based on an average daily volume of 812,900 shares, the days-to-cover ratio is currently 3.4 days. Based on an average daily volume of 812,900 shares, the days-to-cover ratio is currently 3.4 days. Currently, 4.5% of the company’s stock are short sold.

Analysts Set New Price Targets

AGCO has been the topic of several analyst reports. Truist Financial reaffirmed a “buy” rating and issued a $123.00 target price (down previously from $142.00) on shares of AGCO in a report on Monday. Zacks Research cut shares of AGCO from a “strong-buy” rating to a “hold” rating in a report on Friday, September 19th. JPMorgan Chase & Co. raised their target price on shares of AGCO from $135.00 to $136.00 and gave the company an “overweight” rating in a report on Tuesday, October 14th. Barclays raised their target price on shares of AGCO from $110.00 to $116.00 and gave the company an “equal weight” rating in a report on Monday, October 20th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of AGCO in a report on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, AGCO presently has a consensus rating of “Hold” and a consensus price target of $113.67.

AGCO Stock Up 2.0%

AGCO stock traded up $2.07 during midday trading on Monday, reaching $105.23. 866,029 shares of the company were exchanged, compared to its average volume of 850,842. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.67 and a current ratio of 1.48. AGCO has a 1-year low of $73.79 and a 1-year high of $121.16. The stock’s 50-day simple moving average is $108.48 and its 200 day simple moving average is $105.42. The company has a market cap of $7.85 billion, a price-to-earnings ratio of 78.53, a price-to-earnings-growth ratio of 1.73 and a beta of 1.23.

AGCO (NYSE:AGCO) last released its quarterly earnings data on Friday, October 31st. The industrial products company reported $1.35 earnings per share for the quarter, topping analysts’ consensus estimates of $1.26 by $0.09. AGCO had a net margin of 0.98% and a return on equity of 8.27%. The company had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.48 billion. During the same quarter last year, the company earned $0.68 earnings per share. The firm’s revenue for the quarter was down 4.7% on a year-over-year basis. AGCO has set its FY 2025 guidance at 5.000-5.000 EPS. On average, equities analysts forecast that AGCO will post 4.2 earnings per share for the current year.

AGCO Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Friday, November 14th will be given a dividend of $0.29 per share. The ex-dividend date is Friday, November 14th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.1%. AGCO’s dividend payout ratio (DPR) is 23.06%.

AGCO declared that its Board of Directors has initiated a share repurchase program on Wednesday, July 9th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the industrial products company to purchase up to 12.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other news, SVP Luis Fernando Sartini Felli sold 10,000 shares of the stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $109.40, for a total transaction of $1,094,000.00. Following the sale, the senior vice president owned 16,189 shares of the company’s stock, valued at approximately $1,771,076.60. This represents a 38.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 16.60% of the company’s stock.

Hedge Funds Weigh In On AGCO

A number of hedge funds have recently modified their holdings of AGCO. Cullen Frost Bankers Inc. grew its position in shares of AGCO by 1,721.4% during the third quarter. Cullen Frost Bankers Inc. now owns 255 shares of the industrial products company’s stock worth $27,000 after acquiring an additional 241 shares during the last quarter. Pinnacle Bancorp Inc. purchased a new position in shares of AGCO during the third quarter worth approximately $29,000. EverSource Wealth Advisors LLC grew its position in AGCO by 951.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 284 shares of the industrial products company’s stock valued at $29,000 after buying an additional 257 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in AGCO in the 1st quarter valued at $32,000. Finally, SJS Investment Consulting Inc. grew its position in AGCO by 3,725.0% in the 3rd quarter. SJS Investment Consulting Inc. now owns 306 shares of the industrial products company’s stock valued at $33,000 after buying an additional 298 shares during the last quarter. 78.80% of the stock is currently owned by hedge funds and other institutional investors.

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.