Agro Sector Ideas

[gfp927z]

>>> Deere & Company (NYSE:DE)


Number of Hedge Fund Holders: 57


https://www.insidermonkey.com/blog/5-best-farmland-and-agriculture-stocks-to-buy-heading-into-2023-1102709/5/


Deere & Company (NYSE:DE) is an Illinois-based company that manufactures and distributes equipment worldwide. The company operates through four segments – Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. On November 23, Deere & Company (NYSE:DE) posted a FQ4 GAAP EPS of $7.44 and a revenue of $14.35 billion, outperforming Wall Street estimates by $0.34 and $890 million, respectively. The company expects net income for FY2023 to be in the range of $8 billion to $8.5 billion. It is one of the agriculture stocks to invest in.

On December 19, Stifel analyst Stanley Elliott raised the price target on Deere & Company (NYSE:DE) to $477 from $475 and maintained a Buy rating on the shares. In his 2023 outlook note for his Machinery, Construction Materials, and Building Products coverage, the analyst stated that he expects “typical late-cycle trends” including weakness in housing but non-residential demand increasing. The analyst also forecasts the price/cost environment to improve.

According to Insider Monkey’s data, 57 hedge funds were long Deere & Company (NYSE:DE) at the end of the third quarter of 2022, compared to 54 funds in the last quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with approximately 4 million shares worth $1.30 billion.

Harding Loevner made the following comment about Deere & Company (NYSE:DE) in its Q3 2022 investor letter:

“Deere & Company (NYSE:DE), the world’s largest manufacturer of agricultural equipment, reported fiscal third-quarter growth in revenues and earnings of 22% and 16%, respectively. These results reaffirmed Deere’s pricing power, which enabled the company to overcome rising raw material costs and a host of supply chain challenges.

John Deere also suffered supply chain challenges. It could not complete some machines as it waited for parts, and higher shipping costs cut into its margins. In the third quarter, production recovered. Revenue for its connected services Precision Ag unit increased 43% year over year, thanks to rising unit sales and a 15% price bump. Deere is the world’s largest agricultural machinery manufacturer, with the largest customer base, the largest dealer network, and arguably the industry’s most advanced technology stack. Deere has also amassed the industry’s biggest agricultural database. These powerful competitive advantages should help Deere to raise its margins as it targets a 40% share of revenues by the end of the decade from less cyclical, recurring sources such as software and maintenance services.”

<<<

>>> Deere & Company (DE) manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers. The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications; other outdoor power products; and hay and forage equipment. This segment also resells products from other manufacturers. It serves dairy and livestock producers, crop producers, and turf and utility customers. The Construction and Forestry segment provides a range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape and skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, asphalt plants, log skidders, log feller bunchers, log loaders and forwarders, log harvesters, and attachments; and roadbuilding equipment. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties, as well as finances retail revolving charge accounts. Deere & Company was founded in 1837 and is headquartered in Moline, Illinois. <<<




---