John Deere stock has been a reliable choice for investors, with a consistent dividend yield of around 2% over the past decade. This makes it an attractive option for income-seeking investors.
The company's strong financials and stable cash flow have enabled it to maintain this dividend payout, providing a relatively stable source of returns for shareholders.
Financial Analysis
Deere & Company's revenue took a hit in 2024, decreasing by 15.83% to $51.53 billion.
The company's earnings also suffered, plummeting by 30.16% to $7.10 billion.
Despite these setbacks, Deere's stock price surged 8% on November 21 after the company reported strong fiscal Q4 results, with equipment revenue of $9.3 billion.
Financial Performance
Deere & Company's revenue took a hit in 2024, dropping by 15.83% to $51.53 billion. This significant decrease is a stark contrast to the previous year's revenue of $61.22 billion.
The company's earnings also suffered, plummeting by 30.16% to $7.10 billion. This substantial decline is a clear indication of the challenges faced by Deere & Company in the recent past.
The stock price of Deere surged 8% on November 21, after the company reported upbeat fiscal Q4 results. This positive trend is a testament to the company's solid execution despite ongoing market challenges.
Deere & Company's projected earnings for 2025 are expected to range from $5.0 to $5.5 billion, highlighting improved structural performance. This forecast suggests a potential recovery for the company in the coming years.
Here's a breakdown of Deere & Company's estimated financial performance for the next few years:
Deere & Company's dividend yield is expected to be around 1.48% in 2025, increasing to 1.64% in 2026. The company's Board of Directors has also declared a quarterly dividend of $1.62 per share payable in February 2025.
Why Is Dropping?
Earnings reports can cause a stock price to drop. This is because investors may be disappointed with the company's performance or outlook.
Recent company news can also lead to a decline in stock price. For example, a company like Deere & Co. may experience a drop in stock price due to earnings reports or recent company news.
Investors should consider stock experts' recommendations to help decide whether to buy, sell, or hold a stock. This can provide valuable insights and help mitigate potential losses.
Insider Activity
Insider Activity plays a significant role in determining a company's stock performance. Insider buying and selling can send strong signals to investors about a company's prospects.
May John C II, a notable insider, made a significant sell on December 14, 2024, trading 8,135 shares at $440.44 per share. This was not his only transaction on that day, as he also bought 10,076 shares.
On the same day, other insiders also engaged in sell transactions. Campbell Ryan D sold 2,258 shares, while Reed Cory J sold 1,562 shares. Hindman Jahmy J sold 323 shares, Kalathur Rajesh sold 1,530 shares, Kovar Deanna M sold 232 shares, and Jepsen Joshua A sold 136 shares.
Interestingly, these insiders also made buy transactions on the same day. May John C II bought 10,076 shares, Campbell Ryan D bought 2,749 shares, Reed Cory J bought 1,902 shares, Hindman Jahmy J bought 391 shares, and Kalathur Rajesh bought 1,902 shares.
The numbers of shares sold and bought by these insiders on December 14, 2024, are as follows:
These numbers can provide valuable insights into the insiders' confidence in the company's future performance.
Stock Performance
In 2024, Deere & Company's revenue was a staggering $51.53 billion, a decrease of 15.83% from the previous year.
The company's earnings took a hit as well, plummeting to $7.10 billion, a decrease of 30.16% compared to the previous year.
The stock price of Deere surged 8% on November 21, after the company reported upbeat fiscal Q4 results, with equipment revenue reaching $9.3 billion.
Despite the challenges, Deere's results topped estimates, demonstrating solid execution in the face of ongoing market challenges.
Stock Price
Deere & Company's stock price has seen its fair share of fluctuations. The stock price of Deere (NYSE: DE) surged 8% on November 21, after the company reported upbeat fiscal Q4 results.
On January 3, 2025, Deere & Co. stock closed at a price of $422.22. This is a significant drop from the projected 12-month stock price forecast of $444.78.
Analysts are optimistic about the stock, with 19 analysts giving it an average rating of "Buy". The 12-month stock price forecast is $444.78, which is an increase of 5.34% from the latest price.
Deere's financial performance has been impacted by market challenges, with revenue decreasing by -15.83% in 2024 to $51.53 billion.
Analyst Opinions
Analysts are optimistic about Deere's future performance, with an average rating of "Buy" from 19 analysts.
The 12-month stock price forecast is $444.78, representing a 5.34% increase from the latest price.
Analysts' revenue estimates for Deere are quite high, with an average estimate of $59,487 for the next year.
Here's a breakdown of analyst estimates for Deere's earnings and revenue:
The number of analysts following Deere's stock has increased over time, with 13 analysts covering the company in the current year and only 1 analyst in the next year.
This suggests that analysts are paying close attention to Deere's performance and are making informed predictions about its future success.
Market Expectations
Deere faces sales declines due to weak crop prices.
The market's reaction to Deere's recent results was positive, with the stock hovering around all-time highs.
According to 19 analysts, the average rating for DE stock is "Buy".
The 12-month stock price forecast is $444.78, which is an increase of 5.34% from the latest price.
A challenging 2025 outlook is expected, but Deere's structural improvements support a positive outlook.
Strong margin protection and operational excellence are key factors supporting a 'Buy' rating for Deere.
Investment Decisions
Deere & Co. has a strong buy recommendation from 6 out of 7 stock analysts in the last year.
The company's recent results have been good, with the market reacting positively to its latest report.
Despite a challenging 2025 outlook, Deere's structural improvements and operational excellence support a 'Buy' rating, according to analysts.
The stock is currently hovering around all-time highs, indicating a positive market sentiment.
It's worth noting that 0 out of 7 analysts recommended selling the stock in the last year, suggesting a consensus among experts to buy.
Goes Boom: The Next Cycle
Deere & Company has a five-year compound annual growth rate (CAGR) of 14.1%, making it a compelling dividend growth stock.
The company has been proactive in managing its inventory, which has helped it navigate cyclical challenges.
Deere & Company's stock is currently hovering around all-time highs, indicating a positive market reaction to its recent good results.
Despite still being in a downcycle, Deere & Company's strong financials, including its 1.5% dividend yield, make it an attractive investment opportunity.
Deere & Company's dividend growth is a key factor in its appeal to investors, offering a relatively stable source of income.
The company's proactive approach to inventory management and pricing has helped it maintain its financial health during a challenging period.
Is a Good Investment?
Deere & Co. is a compelling dividend growth stock with a strong track record of buybacks and a yield of 1.5%. It has a five-year CAGR of 14.1%.
6 out of 7 stock analysts have recommended buying the stock in the last year. Only 0 analysts have recommended selling it.
The company's proactive inventory management and pricing power have helped it navigate cyclical challenges. Despite weak crop prices, Deere's strong margin protection and operational excellence support a 'Buy' rating.
Deere & Co. was recommended as a Top Pick by a stock expert. The company is still going through a downcycle, but its structural improvements and operational excellence make it a stock worth watching.
The stock has reacted positively to Deere's good results, and it's currently hovering around all-time highs.
Frequently Asked Questions
Why is Deere dropping?
Deere's net sales and revenues declined 17% in 3Q 2024 due to a weak market, leading to a 20% drop in sales. The company's maintenance contracts are holding strong, but a decline in service contracts is a major concern.
What is John Deere stock called?
John Deere stock is listed on the NYSE under the symbol DE. Find out more about investing in John Deere's parent company, Deere & Company.
How much deere stock does Bill Gates own?
Bill Gates owns approximately 3.56 million Deere shares, representing 1.31% of the outstanding stock. His Deere holdings are valued at around $1.54 billion.
Who is John Deere's biggest shareholder?
Bill Gates' investment vehicle, Cascade Investment LLC, is John Deere's largest shareholder. This makes Bill Gates the largest individual shareholder of the farm machinery maker Deere & Co.
Is John Deere on the Nasdaq?
Yes, John Deere's parent company, Deere & Company, is listed on the Nasdaq stock exchange under the ticker symbol DE. You can find the latest stock price, news, and history on the Nasdaq website.
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