Franklin Resources Reduces Stake in Deere & Company by 7.9%

Franklin Resources Inc. has decreased its holdings in Deere & Company (NYSE: DE) by 7.9% during the third quarter of 2023. According to Holdings Channel, this institutional investor now owns 468,183 shares of the industrial products company after selling 40,196 shares throughout the quarter. At the close of this reporting period, Franklin’s stake in Deere was valued at approximately $214.1 million.

Other institutional investors have also made adjustments to their positions in Deere recently. Vanguard Group Inc. increased its stake by 1.4% in the second quarter, bringing its total to 22,372,671 shares, worth around $11.4 billion. State Street Corp raised its holdings by 0.6% during the same quarter, now possessing 10,386,268 shares valued at approximately $5.3 billion. Furthermore, Capital World Investors expanded its position by 5.5% in the third quarter, owning 6,233,740 shares worth around $2.9 billion.

In addition, Norges Bank acquired a new stake valued at $1.6 billion in the second quarter, while Fisher Asset Management LLC also increased its holdings by 5.5% in the third quarter, owning 2,722,018 shares valued at about $1.2 billion. Currently, institutional investors, including hedge funds, control approximately 68.6% of Deere’s stock.

Analysts Adjust Price Targets

Recent reports from various equity analysts indicate a range of opinions regarding Deere’s stock. Citigroup lowered its price target for shares of Deere from $675.00 to $625.00, assigning a “neutral” rating. Conversely, UBS Group raised its target price from $535.00 to $775.00, issuing a “buy” rating. Oppenheimer reiterated an “outperform” rating with a price target of $715.00.

Furthermore, JPMorgan Chase & Co. decreased its price target from $480.00 to $460.00, maintaining a “neutral” position. Overall, 16 analysts have rated the stock as a “buy,” while eight have given it a “hold” rating, and one has assigned a “sell” rating. According to data from MarketBeat.com, Deere currently has a consensus rating of “Moderate Buy” and an average target price of $644.70.

Deere & Company Performance Overview

On February 19, 2024, Deere & Company reported its latest earnings results, showcasing strong performance. The company announced earnings per share (EPS) of $2.42, exceeding the consensus estimate of $1.90 by $0.52. Revenue for the quarter reached $9.61 billion, surpassing expectations of $7.50 billion. This marks a year-over-year revenue increase of 17.5%, compared to $3.19 EPS in the same quarter last year.

As of the most recent data, Deere has a market capitalization of $158.64 billion, with a price-to-earnings (P/E) ratio of 33.11 and a beta of 0.96. The company’s stock opened at $587.30 and has fluctuated between a 52-week low of $404.42 and a high of $674.19.

Deere has also announced a quarterly dividend of $1.62, scheduled for distribution on May 8, 2024, to stockholders of record as of March 31, 2024. This dividend reflects an annualized payout of $6.48, yielding approximately 1.1%.

Insider Activity

In related news, insider transactions have been observed at Deere. On January 14, 2024, Cory J. Reed sold 12,000 shares at an average price of $510.00, totaling around $6.12 million. Following this sale, Reed held 20,792 shares valued at approximately $10.6 million. Additionally, CEO John C. May II sold 41,472 shares on January 8, 2024, at an average price of $501.49, amounting to about $20.8 million in transactions. This reduced May’s ownership to 117,970 shares, valued at approximately $59.2 million.

As per SEC filings, insiders collectively own 0.29% of the company’s stock, indicating a modest level of insider ownership.

About Deere & Company

Deere & Company, widely recognized by its brand name John Deere, is a leading global manufacturer specializing in agricultural, construction, and forestry machinery. Founded in 1837 by blacksmith John Deere, the company has evolved into one of the most prominent names in equipment manufacturing. Headquartered in Moline, Illinois, Deere’s offerings include a comprehensive range of agricultural equipment, precision agriculture technologies, and telematics solutions to enhance farm management and equipment connectivity.