Notable Runner: Is Buying Stock Like Deere & Company After Such Gap Up a Winning Strategy?

Notable Runner: Is Buying Stock Like Deere & Company After Such Gap Up a Winning Strategy?

The stock of Deere & Company (NYSE:DE) gapped up by $5.43 today and has $106.26 target or 4.00% above today’s $102.17 share price. The 7 months technical chart setup indicates low risk for the $35.67B company. The gap was reported on Nov, 24 by Barchart.com. If the $106.26 price target is reached, the company will be worth $1.43B more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 11.04% or $10.16 on November 23, hitting $102.17. Deere & Company (NYSE:DE) has risen 23.39% since April 22, 2016 and is uptrending. It has outperformed by 17.98% the S&P500.

Deere & Company (NYSE:DE) Ratings Coverage

Out of 19 analysts covering Deere & Company (NYSE:DE), 8 rate it a “Buy”, 5 “Sell”, while 6 “Hold”. This means 42% are positive. Deere & Company has been the topic of 52 analyst reports since July 27, 2015 according to StockzIntelligence Inc. As per Monday, August 22, the company rating was maintained by UBS. The firm earned “Outperform” rating on Tuesday, May 24 by BMO Capital Markets. The company was maintained on Tuesday, August 25 by Deutsche Bank. UBS downgraded Deere & Company (NYSE:DE) on Friday, July 29 to “Neutral” rating. As per Monday, August 24, the company rating was maintained by Credit Suisse. The company was upgraded on Monday, October 10 by Wells Fargo. As per Wednesday, August 19, the company rating was upgraded by Zacks. On Thursday, November 19 the stock rating was maintained by UBS with “Sell”. On Monday, August 24 the stock rating was maintained by RBC Capital Markets with “Sector Perform”. The firm has “Underweight” rating by Piper Jaffray given on Monday, August 22.

According to Zacks Investment Research, “Deere & Company is the one world’s foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, and commercial and consumer equipment. The company, in addition, provides credit, special technology, and managed health-care products and services. (Company Press Release)”

Insitutional Activity: The institutional sentiment increased to 0.75 in 2016 Q2. Its up 0.01, from 0.74 in 2016Q1. The ratio is positive, as 72 funds sold all Deere & Company shares owned while 343 reduced positions. 62 funds bought stakes while 245 increased positions. They now own 219.87 million shares or 3.12% less from 226.95 million shares in 2016Q1.
Moreover, Mark Sheptoff Fincl Planning Lc has 0% invested in Deere & Company (NYSE:DE) for 40 shares. Summit Fin Wealth Ltd Llc last reported 9,870 shares in the company. Mufg Americas accumulated 18,172 shares or 0.05% of the stock. The New York-based Grisanti Capital Limited Co has invested 0.02% in Deere & Company (NYSE:DE). Franklin Res reported 4.32 million shares or 0.19% of all its holdings. Independent Port Consultants has 490 shares for 0.01% of their US portfolio. Herndon Capital Limited Company holds 0% of its portfolio in Deere & Company (NYSE:DE) for 27 shares. Janney Montgomery Scott Limited Co last reported 0.11% of its portfolio in the stock. The Quebec – Canada-based Fiera Cap Corporation has invested 0% in Deere & Company (NYSE:DE). Lenox Wealth Mgmt Inc owns 667 shares or 0.04% of their US portfolio. Neumann Capital Limited Liability Company reported 13,785 shares or 0.74% of all its holdings. Sumitomo Mitsui Asset Mgmt Ltd reported 20,598 shares or 0.05% of all its holdings. Northeast Financial Consultants, a Connecticut-based fund reported 10,242 shares. Edge Asset Mgmt last reported 1.94M shares in the company. Rockefeller Fincl Service Incorporated accumulated 1,000 shares or 0% of the stock.

Insider Transactions: Since August 12, 2016, the stock had 0 insider purchases, and 2 sales for $8.39 million net activity. May John C II sold $1.80M worth of Deere & Company (NYSE:DE) on Tuesday, November 22. The insider CASCADE INVESTMENT – L.L.C. sold 85,000 shares worth $6.59 million.

More notable recent Deere & Company (NYSE:DE) news were published by: Fool.com which released: “Why Deere & Co. Jumped 10% Today” on November 23, 2016, also Wsj.com with their article: “Deere & Co. Earnings: What to Watch” published on November 22, 2016, Forbes.com published: “Donald Trump Rally Makes Deere, Caterpillar And Mining Stocks Great Again” on November 23, 2016. More interesting news about Deere & Company (NYSE:DE) were released by: Thestreet.com and their article: “What to Watch Wednesday: Deere & Company Earnings, Fed Minutes” published on November 23, 2016 as well as Reuters.com‘s news article titled: “Deere shares leap after earnings beat on pricing, costs” with publication date: November 23, 2016.

DE Company Profile

Deere & Company, incorporated on April 25, 1958, is engaged in equipment activities and financial services. The Firm operates through three business divisions: agriculture and turf, construction and forestry, and financial services. The Company’s agriculture and turf segment primarily makes and distributes a range of agriculture and turf equipment and related service parts, including large, medium and utility tractors; loaders; combines, corn pickers, cotton and sugarcane harvesters, and related front-end equipment and sugarcane loaders; tillage, seeding and application equipment, including sprayers, nutrient management and soil preparation machinery; hay and forage equipment, including self-propelled forage harvesters and attachments, balers and mowers; turf and utility equipment, including riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles and commercial mowing equipment, along with a line of associated implements, and integrated agricultural management systems.

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