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DULUTH, Ga. - AGCO (NYSE:AGCO), a global agricultural machinery manufacturer with a market capitalization of $8.2 billion, announced Wednesday its Board of Directors has authorized a new share repurchase program of up to $1 billion of the company’s common stock. The company’s stock is trading near its 52-week high of $111.69, according to InvestingPro data.
The program will allow the company to repurchase shares from time to time in open market transactions at prevailing market prices or through privately negotiated transactions. AGCO may also enter into Rule 10b5-1 plans to facilitate repurchases under this authorization.
"AGCO has always maintained a disciplined and robust capital allocation plan, prioritizing the most effective deployment of capital to maximize shareholder value," said Eric Hansotia, AGCO’s Chairman, President and CEO, in a press release statement. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 1.53, indicating solid liquidity. Get access to 8 more key ProTips and comprehensive analysis with InvestingPro.
The timing, number and value of shares repurchased will be determined within the terms of the authorization and will depend on factors including the stock’s trading price, market conditions, and applicable legal requirements.
The company noted that the program does not obligate AGCO to repurchase any shares and may be suspended, discontinued or modified at any time for any reason without notice.
AGCO, headquartered in Duluth, Georgia, designs, manufactures and distributes agricultural machinery and precision agriculture technology through brands including Fendt, Massey Ferguson, PTx and Valtra. The company reported net sales of approximately $11.7 billion in 2024, with trailing twelve-month revenues of $10.8 billion. Discover detailed financial metrics and expert insights in AGCO’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, AGCO Corporation has finalized a series of agreements with Tractors and Farm Equipment Limited (TAFE) to resolve all commercial and legal disputes between the two companies. As part of the settlement, AGCO will receive $260 million from TAFE and will divest its 20.7% stake in TAFE. The agreements include TAFE’s participation in future AGCO share repurchase programs and the termination of existing commercial agreements, granting TAFE exclusive ownership of the Massey Ferguson brand in India, Nepal, and Bhutan. Analysts from Truist Securities and Jefferies have reiterated their Buy ratings on AGCO, with price targets of $112.00 and $120.00, respectively, citing the resolution as a positive development for AGCO’s strategic focus and potential for profitable growth. Meanwhile, Raymond James has maintained its Market Perform rating, noting that the agreement includes TAFE’s commitment to align its voting with AGCO’s board. Citi has kept a Neutral rating with a $110.00 price target, acknowledging the resolution of disputes but maintaining a cautious outlook. The settlement allows AGCO to focus on strategy execution and shareholder returns, with potential share repurchases on the horizon.
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