Franklin Resources Reduces Stake in Deere & Company by 7.9%

Franklin Resources Inc. has reduced its stake in Deere & Company (NYSE: DE) by 7.9% during the third quarter of 2023, according to Holdings Channel. The institutional investor sold 40,196 shares, leaving it with a total of 468,183 shares valued at approximately $214.1 million after the transaction.

Other institutional investors have also adjusted their holdings in Deere & Company recently. For instance, Vanguard Group Inc. increased its position by 1.4% in the second quarter, now holding 22,372,671 shares worth $11.4 billion. State Street Corp lifted its holdings by 0.6%, bringing its total to 10,386,268 shares, valued at $5.3 billion. Meanwhile, Capital World Investors boosted its stake by 5.5% in the third quarter, now owning 6,233,740 shares worth approximately $2.9 billion.

Norges Bank acquired a new stake in Deere during the second quarter valued at $1.6 billion. Additionally, Fisher Asset Management LLC increased its holdings by 5.5% in the third quarter, bringing its total ownership to 2,722,018 shares, valued at about $1.2 billion. Overall, hedge funds and institutional investors currently hold 68.58% of Deere & Company’s stock.

Analyst Ratings and Market Performance

In the wake of these changes, several equity analysts have provided updated ratings for Deere & Company. Citigroup has lowered its price target from $675.00 to $625.00, maintaining a “neutral” rating. Conversely, UBS Group raised its target from $535.00 to $775.00, giving the company a “buy” rating. Oppenheimer reaffirmed an “outperform” rating with a price target of $715.00. Meanwhile, JPMorgan Chase & Co. cut its price target from $480.00 to $460.00 while maintaining a “neutral” stance.

Deere & Company’s stock opened at $587.30 on Friday, reflecting a decline of 1.1%. The company has a market capitalization of $158.64 billion, a price-to-earnings (P/E) ratio of 33.11, and a beta of 0.96. The stock has seen a 52-week low of $404.42 and a 52-week high of $674.19.

Financial Results and Dividends

Deere & Company recently reported its earnings for the quarter ending February 19, 2024. The company achieved earnings per share of $2.42, surpassing analysts’ expectations of $1.90 by $0.52. Revenue for the quarter reached $9.61 billion, significantly exceeding the consensus estimate of $7.50 billion. The company’s net margin stood at 10.29%, and its return on equity was 18.93%, with a year-over-year revenue increase of 17.5%.

Deere has also announced a quarterly dividend of $1.62, scheduled for payment on May 8, 2024. Stockholders of record on March 31, 2024, will receive this dividend, which translates to an annualized payout of $6.48 and a yield of 1.1%. The company’s current payout ratio is 36.53%.

In insider trading news, Cory J. Reed, an insider, sold 12,000 shares on January 14, 2024, for a total of $6.12 million. Following this transaction, Reed owned 20,792 shares valued at around $10.6 million. Additionally, CEO John C. May II sold 41,472 shares on January 8, 2024, for approximately $20.8 million, reducing his ownership to 117,970 shares valued at about $59.2 million.

Deere & Company, commonly recognized as John Deere, is a leading global manufacturer of agricultural, construction, and forestry machinery, along with turf care equipment and power systems. Established in 1837 by blacksmith John Deere, the company is headquartered in Moline, Illinois, and continues to be a significant player in equipment manufacturing worldwide. Its product offerings include a comprehensive range of agricultural equipment, enhanced by precision agriculture technologies aimed at optimizing farm management and productivity.