Deere & Company (NYSE:DE): A Fundamentally Weighted Stock for Long-Term Investors

Deere & Company (NYSE:DE) previous close was $355.22 while the outstanding shares total 313.50M. The firm has a beta of 1.06, a 12-month trailing P/E ratio of 32.90, and a growth ratio of 0.94. DE’s shares traded higher over the last trading session, gaining 1.28% on 05/21/21. The shares fell to a low of $352.17 before closing at $359.75. Intraday shares traded counted 3.61 million, which was -112.4% lower than its 30-day average trading volume of 1.70M. The stock’s Relative Strength Index (RSI) is 40.08, with weekly volatility at 3.30% and ATR at 10.95. The DE stock’s 52-week price range has touched low of $138.76 and a $400.34 high.

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Investors have identified the Farm & Heavy Construction Machinery company Deere & Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $111.34 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Deere & Company (DE) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DE, the company has in raw cash 6.96 billion on their books with 13.19 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 53.16 billion total, with 22.72 billion as their total liabilities.

DE were able to record -11.0 million as free cash flow during the 08/20/2021 quarter of the year, this saw their quarterly net cash flow reduce by -108.0 million. In cash movements, the company had a total of 143.0 million as operating cash flow.

Potential earnings growth for Deere & Company (DE)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/20/2021 quarter of the year, Deere & Company recorded a total of 9.11 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 16.25% coming in sequential stages and their sales for the 08/20/2021 quarter reducing by -6.79%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 5.8 billion trying to sell their products during the last quarter, with the result yielding a gross income of 3.31 billion. This allows shareholders to hold on to 313.50M with the recently reported earning now reading 3.90 cents per share. This is a figure that compared to analyst’s prediction for their 08/20/2021 (5.68 cents a share).

Having a look at the company’s valuation, the company is expected to record 18.42 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DE sounds very interesting.

Is the stock of DE attractive?

In related news, President, JD Financial & CIO, Kalathur Rajesh sold 27,800 shares of the company’s stock in a transaction that recorded on Mar 15. The sale was performed at an average price of 369.09, for a total value of 10,260,702. As the sale deal closes, the Group Pres., Life Sol & CAO, Howze Marc A now sold 6,188 shares of the company’s stock, valued at 1,973,972. Also, Group Pres., Life Sol & CAO, Howze Marc A sold 8,585 shares of the company’s stock in a deal that was recorded on Jan 07. The shares were price at an average price of 299.00 per share, with a total market value of 2,566,915. Following this completion of acquisition, the Group Pres., Life Sol & CAO, Howze Marc A now holds 14,619 shares of the company’s stock, valued at 4,224,891. In the last 6 months, insiders have changed their ownership in shares of company stock by 9.50%.

14 out of 24 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Deere & Company. 1 analysts has assigned a Sell rating on the DE stock. The 12-month mean consensus price target for the company’s shares has been set at $398.47.