Gateway Investment Advisers Lowers Stake in Deere & Company Shares

Gateway Investment Advisers LLC has reduced its stake in shares of Deere & Company (NYSE: DE) by 7.2% during the third quarter of 2023. The firm reported owning 71,587 shares after selling 5,561 shares, valuing its holdings at approximately $32.73 million at the end of the quarter, according to a recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also adjusted their positions in Deere & Company. Fifth Third Wealth Advisors LLC increased its holdings by 2.8%, now owning 10,684 shares valued at $4.89 million. Meanwhile, DMKC Advisory Services LLC lifted its stake by 1.4%, holding 13,217 shares worth $6.04 million. Notably, Global Retirement Partners LLC expanded its position by 22.5%, acquiring 4,662 shares valued at $2.13 million, and Tradewinds Capital Management LLC grew its stake by 36.4%, now owning 285 shares worth $130,000.

In total, institutional investors and hedge funds control 68.58% of Deere & Company’s stock.

Analysts Provide Mixed Ratings on Deere & Company

Recent reports from various brokerages have produced a mixed outlook for Deere & Company. Weiss Ratings reaffirmed a “hold (C+)” rating on the stock on December 29, 2023. In contrast, Royal Bank of Canada reduced its price objective from $542.00 to $541.00, maintaining an “outperform” rating. Additionally, Zacks Research upgraded the stock from a “strong sell” to a “hold” rating on December 3, 2023, while Wall Street Zen downgraded it from a “hold” to a “sell” rating.

Overall, one analyst has issued a “Strong Buy” rating, while fifteen others have recommended buying the stock, and ten analysts have assigned it a hold rating. According to MarketBeat.com, Deere & Company holds an average rating of “Moderate Buy” with an average price target of $524.20.

Deere & Company’s stock opened at $466.79 on November 26, 2023, reflecting a 0.3% increase. The company boasts a market capitalization of $126.24 billion, a P/E ratio of 25.22, and a P/E/G ratio of 1.79. The stock has fluctuated between a 52-week low of $403.01 and a high of $533.78.

Financial Performance and Dividend Announcement

Deere & Company recently reported its quarterly earnings, revealing an earnings per share (EPS) of $3.93. This fell short of the consensus estimate of $3.96 by $0.03. Despite this, the company achieved a revenue of $12.39 billion for the quarter, significantly surpassing analyst expectations of $9.77 billion. This represents a year-over-year revenue increase of 14.1%.

Looking ahead, equities analysts project that Deere & Company will report an EPS of $19.32 for the current fiscal year. The company also declared a quarterly dividend of $1.62 per share, set to be paid on February 9, 2024, to investors of record as of December 31, 2023. This dividend represents an annualized rate of $6.48 and a yield of 1.4%, with a payout ratio of 35.01%.

In an insider transaction, CEO John C. May II sold 11,106 shares at an average price of $500.08, totaling approximately $5.55 million. Following the sale, he retains 112,453 shares valued at around $56.24 million, indicating an 8.99% reduction in his holdings.

About Deere & Company

Founded in 1837 by blacksmith John Deere, the company has established itself as a global leader in manufacturing agricultural, construction, and forestry machinery. Headquartered in Moline, Illinois, Deere & Company is recognized for its broad portfolio of agricultural equipment, including tractors, combines, and precision agriculture technologies. The company continues to innovate in the fields of farm management and equipment connectivity, making it one of the most prominent names in equipment manufacturing worldwide.