Bearish Sentiment Grows Among Investors for Deere Stocks

A report reveals a bearish trend in options trading for Deere, signaling potential changes in stock performance. With a majority of trades leaning bearish and mixed expert ratings, investors may need to reassess their positions ahead of the upcoming earnings announcement.

Date: 26-11-2024

AI Rating: 5

The report highlights a shift in sentiment among investors regarding Deere (NYSE: DE). Notably, there is a significant uptick in bearish options trading, with 55% of trades identified as bearish compared to only 22% bullish.

Over the last three months, big-money traders have been targeting a price range of $360 to $465 for Deere, showcasing their expectations for the stock's performance. The overall trading volume reported is considerable, sitting at 571,053, but the current price indicates a slight downward trend, having decreased by 1.95% to reach $453.65.

The analysis of options trading reveals a mix of puts and calls, with a total of 5 puts amounting to $170,258 and 4 calls totaling $150,386. This skew towards bearish sentiment could indicate a lack of confidence in the short-term prospects of the company’s stock price.

No information is provided on Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins (Gross, Operating, Net), Free Cash Flow (FCF), or Return on Equity (ROE). However, the timing of the earnings announcement in 79 days could be a significant factor, potentially influencing stock prices based on the forthcoming results.

Furthermore, the report discusses various analyst ratings for Deere, with a consensus target price of $475.4. While several analysts maintain neutral ratings, there is a slight range in price targets—from a low of $450 to a high of $538. This indicates mixed expectations in the market and a cautious outlook as investors await more information.

In conclusion, the overall bearish trend in options trading, combined with mixed analyst ratings and the recent decline in stock price, suggests that investors may be leaning towards caution with Deere. These factors could lead to price volatility in the near future.

Stocks: DE