Deere & Company (DE) shares are trading at lower $215.77 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $217.17.
To add more color to this target, the company’s high over the last year is $219.71 and the low is $106.14. Over the last 52 weeks, DE is up 31.10% while the S&P 500 is up 13.33%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, DE reported a profit of $3.09 billion. Deere & Company also saw revenues increase to $8.93 billion. In addition, DE has free cash flow of $3.46 billion as of 07-2020. The company’s EBITDA came in at $2.11 billion which compares well with its peers.
DE booked profit margins of 7.60%, its Return on Equity (ROE) is 22.60%, and its Return on Assets is 3.60%. All told, it is clear that, DE needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DE has a short ratio of 2.31 and outstanding shares of 313.00M.
DE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.69 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 8.45. Deere & Company DE also noted assets of $77.26 billion at the end of the last quarter. Investors should also keep an eye on sector updates as DE has historically followed its peers on positive news.
All told, Deere & Company DE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Deere & Company DE is now commanding a market cap of 67.35B and a float of 312.65M. DE is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in DE, either long or short, and we have not been compensated for this article.