Deere Rises After $8 Billion Buyback AuthorizationShruti Date Singh
Deere & Co., the world’s largest maker of agricultural equipment, rose the most in seven months after saying it will repurchase as much as $8 billion in stock.
The buyback program will supplement the $1 billion remaining as of Oct. 31 from a $5 billion share authorization announced in May 2008, Moline, Illinois-based Deere said in a statement today. The board also declared a quarterly dividend of 51 cents a share, unchanged from the previous payout.
Deere advanced 3.2 percent to $85.38 in New York, the biggest gain since April 29.
“This is positive,” Matt Arnold, a St. Louis-based analyst for Edward Jones & Co. who recommends buying the shares, said in a telephone interview. “This is one of the stocks that has not moved positively with the broader market.”
Deere has declined 0.7 percent in 2013 as it forecast sales and earnings will fall in its 2014 fiscal year. The Standard & Poor’s Index has gained 26 percent in the same period.