Insider Trading Report: Deere & Co (DE)

Tami Erwin, a director at Deere & Co (DE), recently bought 675 shares. The buy increased her stake by 29 percent, and came to a total cost just under $250,500.

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  • This marks the only insider buy at the company over the past two years. Company executives have otherwise exclusively been sellers over the past two years. However, those sales have come following the exercise of stock options.

    Overall, company insiders own 0.2 percent of shares.

    The agricultural equipment manufacturer is up about 10 percent over the past year. Shares trade at 12 times earnings, nearly half the valuation of the S&P 500 index right now.

    Plus, Deere has managed to grow revenues by 30 percent and earnings by more than 36 percent in the same timeframe. While the company’s debt load is a little high, this increased cash flow makes it likely that the company can continue to thrive.

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  • Action to take: Given the company’s growth and valuation, it’s likely that there’s more continued upside ahead for shares. Deere pays a 1.3 percent dividend, and has grown that payout over time.

    For traders, shares have pulled back since the start of the year but have now started to move higher. The October $400 calls, last going for about $16.75, could see mid-double-digit returns on a further move higher in Deere shares in the next few months.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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