Adecoagro S.A. (AGRO): More Irrationality?

The stock of Adecoagro S.A. (NYSE:AGRO) has been Upgraded to Buy from Neutral by Citigroup in its latest research note that was published on June 10. Morgan Stanley analysts have downgraded their rating of AGRO stock from Overweight to Equal-Weight in a separate flash note to investors on January 16. Analysts at Credit Suisse downgraded the stock to a Neutral call from its previous Outperform stance, in a research note that dated back to July 27.

Adecoagro’s stock is covered by 10 analysts, with 1 of them rating the stock as Buy. It has been deemed to have strong buy by 3 of the analysts, 6 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 1 analysts. 3 of them rated it as strong buy with 6 of them recommended investors to Hold on to the stock. Meanwhile, none analyst(s) rated it as a sell. The above data shows that AGRO has an average analyst rating of 2.50.

Adecoagro S.A., which has current market capitalization of above $670 Million, published its last quarter earnings on June 30, 2019. The company was able to amass $227.79 million in revenue. This figure is $-6.02 million less than what analysts had expected, which was $233.81 million. During that quarter, the company also recorded $0.01 earnings per share (EPS) which is $-0.07 below the $0.08 estimated by Thomson Reuter’s analyst, leading to a surprise factor of 87.5%.

AGRO surged by $0.06 during the normal trading session on Friday and reaching a high of $5.62 during the day while it closed the day at $5.58. The Adecoagro stock had a low trading volume of 0.50 million shares on that day, which is low compared to the average daily volume of 307.82M shares. AGRO has also lost 2.45% of its value over the past 7 days. However, the stock has declined by 17.33% in the 3 months of the year. Over the past six months meanwhile, it has lost 21.85% while it has lost 19.83% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -23.46% from its 3 months high price. However, taking another look at AGRO will indicate that it is trading +2.76% away from its 90-day low. Looking at the bigger picture, the Adecoagro S.A. stock has dropped by -32.69% from its 52-week high while it has surged by +2.76% from its 52-week low price.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 8.15%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 8.88%. Over the past 20 days, Adecoagro’s Stochastic %K stood at 8.31% while its Stochastic %D was revealed to be 10.93%.