Deere & Company (NYSE:DE) shares traded lower over the last trading session, losing -1.98% on 06/09/21. The shares fell to a low of $349.21 before closing at $349.53. Intraday shares traded counted 2.0 million, which was -20.28% lower than its 30-day average trading volume of 1.66M. DE’s previous close was $356.58 while the outstanding shares total 312.80M. The firm has a beta of 1.05, a 12-month trailing P/E ratio of 24.09, and a growth ratio of 0.64. The stock’s Relative Strength Index (RSI) is 36.10, with weekly volatility at 2.01% and ATR at 9.05. The DE stock’s 52-week price range has touched low of $148.12 and a $400.34 high.
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 $109.73 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 7.18 billion on their books with 14.02 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 an incline. In terms of their assets, the company currently has 56.66 billion total, with 24.7 billion as their total liabilities.
DE were able to record 1.47 billion as free cash flow during the 08/20/2021 quarter of the year, this saw their quarterly net cash flow reduce by 109.0 million. In cash movements, the company had a total of 1.79 billion 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 12.06 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 23.26% coming in sequential stages and their sales for the 08/20/2021 quarter increasing by 24.43%.
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 7.93 billion trying to sell their products during the last quarter, with the result yielding a gross income of 4.13 billion. This allows shareholders to hold on to 312.80M with the recently reported earning now reading 5.72 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/20/2021 (5.68 cents a share).
Having a look at the companyâ€™s valuation, the company is expected to record 20.30 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, Director, Erwin Tami A. bought 275 shares of the companyâ€™s stock in a transaction that recorded on Jun 02. The purchase was performed at an average price of 359.61, for a total value of 98,893. As the purchase deal closes, the CEO & President, May John C II now sold 39,336 shares of the companyâ€™s stock, valued at 14,124,258. Also, Sr VP & CFO, CAMPBELL RYAN D sold 12,033 shares of the companyâ€™s stock in a deal that was recorded on Jun 01. The shares were cost at an average price of 365.19 per share, with a total market value of 4,394,331. Following this completion of disposal, the Pres., Small Ag & Turf, von Pentz Markwart now holds 23,463 shares of the companyâ€™s stock, valued at 8,568,453. 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 companyâ€™s shares has been set at $410.89.