How Do Hedge Funds View These 3 Downgraded Stocks?

Analysts at UBS lowered their rating on AGCO Corporation (NYSE:AGCO)  to ‘Sell’ from ‘Neutral’ and cut their price target to $39 from $59. The analysts believe AGCO’s 2016 earnings will be weaker than expected and likely less than the consensus expectation of $3.09 per share. Shares of the agricultural equipment company were up 3.88% year to date before the downgrade.

Hedge funds are also divided on AGCO Corporation (NYSE:AGCO). Even though the number of funds with long positions declined to 16 from 20 during the second quarter, these funds owned $591.23 million worth of the company’s stock (representing 11.80% of the float) at the end of June, up from $408.73 million on March 31. Clifton S. Robbins‘ Blue Harbour Group increased its position by 23% to 4.69 million shares, while Robert Rodriguez and Steven Romick’s First Pacific Advisors inched up its stake by 3% to 1.12 million shares. Martin Whitman’s Third Avenue Management trimmed its holding by 1% to 1.9 million shares.

Disclosure: None