Shares of Adecoagro S.A. (NYSE:AGRO) have received an average recommendation of “Strong Sell” from five analysts currently covering the company, according to Marketbeat.com. This negative outlook includes four analysts rating the stock as a sell and one providing a hold recommendation. The consensus 12-month target price among brokerages is set at $8.95.
Several analysts have recently offered their assessments of Adecoagro’s stock. On September 3, UBS Group reduced its price target from $9.90 to $8.50, maintaining a “neutral” rating. Following this, on November 23, Wall Street Zen downgraded the stock from a “hold” to a “sell” rating. Moreover, on October 8, Weiss Ratings reaffirmed a “sell (d+)” rating for Adecoagro. In a report released on Monday, JPMorgan Chase & Co. initiated coverage with an “underweight” rating and established a price target of $7.00.
Financial Performance and Earnings Report
On November 11, 2023, Adecoagro reported its quarterly earnings, revealing earnings per share of $0.26, significantly exceeding the consensus estimate of $0.06 by $0.20. The firm generated revenue of $304.21 million for the quarter, falling short of analysts’ expectations of $377.18 million. Adecoagro recorded a return on equity of 3.09% and a net margin of 1.67%. Analysts forecast that the company will achieve an earnings per share of 1.24 for the current fiscal year.
In addition to its earnings report, Adecoagro announced a dividend payment of $0.1749 per share, which was disbursed on November 19, 2023. This dividend had a record date of November 3, and the ex-dividend date was also November 3. The declared dividend represents an impressive yield of 444.0%, although the company’s payout ratio stands at 152.17%.
Institutional Investment Activity
Recent activity among hedge funds and institutional investors indicates a shift in holdings for Adecoagro. In the third quarter, Jeppson Wealth Management LLC acquired a new position valued at approximately $124,000. Additionally, the State of Wyoming entered a new stake worth around $133,000 in the first quarter. R Squared Ltd increased its holdings by 103.0% during the same quarter, bringing its total to 15,128 shares, valued at $169,000.
Furthermore, Vise Technologies Inc. purchased a new position worth around $277,000 in the second quarter, while Magnetar Financial LLC raised its stake by 105.9%, acquiring a total of 31,615 shares worth $289,000. Currently, institutional investors hold approximately 45.25% of Adecoagro’s stock.
Adecoagro S.A. operates as an agro-industrial company in South America, primarily functioning through three segments: Farming; Sugar, Ethanol and Energy; and Land Transformation. The company is involved in the production of crops, dairy operations, and energy, making it a significant player in the region’s agricultural landscape.
