Deere Stock Rises on Upbeat Earnings, Forecast

The stock recently gapped lower on the charts, though

Deputy Editor
May 21, 2021 at 10:20 AM
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The shares of Deere & Co (NYSE:DE) are up 3.1% to trade at $366.12 at last check, after the company reported fiscal second-quarter profits of $5.68 per share -- higher than the anticipated $4.52 -- as well as better-than-expected revenue. The equipment maker also raised its fiscal year forecast, though CEO John May warned of increased supply-chain pressure through the rest of the year. 

On the charts, DE gapped below a floor at the $366 level this week, and slipped under the supportive 60-day moving average for the first time since May 2020. Longer term, the stock sports an impressive 152.8% year-over-year gain. It's also worth noting that the security's 14-Day Relative Strength Index (RSI) of 36 is on the cusp of "oversold" territory, which provides further insight into today's bounce. 

Analysts are overwhelmingly optimistic towards Deere stock. Of the 16 in coverage, 12 say "buy" or better, in addition to three tepid "hold" ratings, and one "strong sell." Plus, the 12-month consensus price target of $398.47 is a 9.7% premium to current levels

Options traders are targeting DE after the event, with options volume running at six times what's typically seen at this point. So far, 9.248 calls and 7,403 puts have crossed the tape. Most popular is the expiring May 360 call, where new positions are currently being opened.

 

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