Goldman Sachs Downgrades AGCO (AGCO)

On April 3, 2023,
Goldman Sachs
downgraded
their outlook
for AGCO (NYSE:AGCO) from Buy
to Neutral
.

Analyst Price Forecast Suggests 16.89% Upside

As of March 30, 2023,
the average one-year price target for AGCO is $158.04.
The forecasts range from a low of $123.22 to a high of $194.25.
The average price target represents an increase of 16.89% from its latest reported closing price of $135.20.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for AGCO
is $13,257MM, an increase of 4.79%.

The projected annual non-GAAP EPS
is $13.01.

AGCO Declares $0.24 Dividend

On January 20, 2023 the company declared a regular
quarterly dividend of $0.24 per share ($0.96 annualized).
Shareholders of record as of February 15, 2023
received the payment on March 15, 2023.
Previously, the company paid $0.24 per share.

At the current share price of $135.20 / share,
the stock’s dividend yield is 0.71%.

Looking back five years and taking a sample every week, the average dividend yield has been
1.46%,
the lowest has been 0.42%,
and the highest has been 5.94%.
The standard deviation of yields is 1.44 (n=236).

The current dividend yield is
0.52 standard deviations

below
the historical average.

Additionally, the company’s dividend payout ratio is 0.46.
The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0)
means 100% of the company’s income is paid in a dividend.
A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a
healthy situation.
Companies with few growth prospects are expected to pay out most of their income in dividends, which typically
means a payout ratio between 0.5 and 1.0.
Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 7.53%,
demonstrating that it has increased its dividend over time.

What are Large Shareholders Doing?

Victory Capital Management
holds 3,260K shares

representing 4.36% ownership of the company.

In it’s prior filing, the firm reported owning 3,242K shares, representing
an increase
of 0.56%.

The firm

decreased

its portfolio allocation in AGCO by 14.23% over the last quarter.

Lsv Asset Management
holds 3,198K shares

representing 4.27% ownership of the company.

In it’s prior filing, the firm reported owning 3,309K shares, representing
a decrease
of 3.47%.

The firm

increased

its portfolio allocation in AGCO by 30.82% over the last quarter.

VETAX – Victory Sycamore Established Value Fund
holds 2,220K shares

representing 2.97% ownership of the company.

In it’s prior filing, the firm reported owning 2,185K shares, representing
an increase
of 1.57%.

The firm

increased

its portfolio allocation in AGCO by 28.69% over the last quarter.

Nordea Investment Management Ab
holds 2,006K shares

representing 2.68% ownership of the company.

In it’s prior filing, the firm reported owning 2,016K shares, representing
a decrease
of 0.50%.

The firm

increased

its portfolio allocation in AGCO by 35.20% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares
holds 1,927K shares

representing 2.57% ownership of the company.

In it’s prior filing, the firm reported owning 1,775K shares, representing
an increase
of 7.89%.

The firm

increased

its portfolio allocation in AGCO by 44.59% over the last quarter.

What is the Fund Sentiment?

There are 994 funds or institutions reporting positions in AGCO.

This is an increase
of
33
owner(s) or 3.43% in the last quarter.

Average portfolio weight of all funds dedicated to AGCO is 0.29%,
a decrease
of 2.74%.

Total shares owned by institutions increased
in the last three months by 0.58% to 67,578K shares.

The put/call ratio of AGCO is 0.42, indicating a

bullish
outlook.

AGCO Background Information
(This description is provided by the company.)

GCO is a global leader in the design, manufacture and distribution of agricultural solutions and delivers high-tech solutions for farmers feeding the world through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of approximately $9.0 billion in 2019.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.