Stock Report: Deere & Company (DE)

Publication Date: September 22, 2024

Company Overview

Deere & Company (NYSE: DE), headquartered in Moline, Illinois, is a leading global manufacturer and distributor of equipment, particularly focusing on the agricultural and construction sectors. Since its inception in 1837, Deere has established itself as a key player in the Farm & Heavy Construction Machinery industry. The company operates through four distinct segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. Deere provides a versatile range of machinery, including large and medium tractors, combines, and various construction equipment. Originally listed on the stock exchange on March 4, 1957, Deere is classified under the Industrials sector, signifying its integral role in driving economic growth.

Financial Performance and Market Outlook

Deere’s financial performance continues to impress, with total revenue reported at $55.96 billion. This strong revenue signifies not only Deere’s extensive market presence but also its potential for sustained profitability, making it an attractive investment opportunity. Currently, Deere’s stock is trading at $405.89, with an anticipated target high price of $495.00—indicating a robust potential upside of approximately 22%. Analysts project a target mean price of $416.17 and a median target price of $410.00, suggesting a positive growth outlook.

Additionally, the stock has demonstrated a bullish sentiment among investors, as reflected by the low percentage of shares sold short: 5,036,328 shares, or approximately 0.0184% of the float. With a total of 273.6 million shares outstanding and 253.2 million in public hands, this minimal short-selling indicates confidence in Deere’s performance. The stock currently sits well above its fifty-two-week low of $340.20, approaching its peak of $417.47, underscoring its upward trajectory.

Analyst Insights and Recommendations

The analysts’ consensus rating for Deere’s stock is notably positive, with a mean recommendation rating of 2.3 from a survey of 19 analysts. This endorsement translates to a clear “buy” recommendation for prospective and current investors. The variability in price projections, with a target low of $341.21 and a target high of $495.00, highlights the potential for significant price movement, affirming the stock’s favorable risk-reward profile.

Overall, Deere & Company stands out in the Farm & Heavy Construction Machinery sector due to its impressive financial metrics, strategic market positioning, and strong analyst backing. This combination points to a promising investment opportunity for stakeholders seeking growth in the robust industrial sector.

Metric	Value
Market Cap	$111.1b
Total Debt	$66.7b
Total Cash	$5.8b
Shares Outstanding	273.6m
Float Shares	253.2m