Canaccord Genuity downgraded DE to "hold" from "buy"
Just a few days after Evercore ISI downgraded Deere & Co (NYSE:DE) on agricultural production cuts, Canaccord Genuity slashed DE's rating to "hold" from "buy," with a steep price-target cut to $400 from $530. The analyst in coverage cited industry data showing that spending on large agricultural equipment is slowing.
At last glance, DE was down 1.7% at $381.18, looking to extend yesterday's 3.7% deficit -- it's worst daily drop since April. Today's price action places the stock firmly below its 320-day moving average, which provided support for its mid-August pullback. Since the start of the year, the equity is down 11%.
Options traders are taking a cue from the downgrade cycle, with puts running at double their intraday average amount. The weekly 9/22 375-strike put is the most popular, with new positions being opened there.