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Update on Deere’s Senior Leadership Changes

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Deere’s leadership changes

On October 2, Deere (DE) announced senior leadership changes. The company’s senior management will undergo a planned retirement at the end of 2018. The changes will be effective on November 15.

The following changes were announced:

  • Max A. Guinn will retire as the president of the Worldwide Construction and Forestry Division. James M. Field will be the new president of the Worldwide Construction and Forestry Division.
  • John C. May has been appointed as the president of the Worldwide Agriculture and Turf Division – Global Harvesting and Turf Platforms, Ag Solutions, Americas and Australia.
  • Mark von Pentz has been appointed as the president of the Worldwide Agriculture and Turf Division – Global Tractor and Hay & Forage Platforms, Europe, CIS, Asia, Africa.
  • Raj Kalathur has been appointed as the senior vice president, CFO, and CIO.

Samuel R. Allen, Deere’s chairman and CEO, said, “We are taking this opportunity to realign the senior management team to improve efficiency, further develop leadership talent, and more effectively align the organization in support of the company’s business strategy.”

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Deere’s stock price

Deere stock remained positive for the week. The stock gained ~4.0% and closed at $156.4 for the week ending October 5. The gains caused the stock to trade ~6.8% above the 100-day moving average price of $146.48. The stock showed signs of an upward trend in the 100-day moving average. Deere’s 100-day moving average price has fallen from ~$157.80 to the current levels.

Deere has recovered the lost ground. On a year-to-date basis, the stock is marginally down 0.1%. Caterpillar (CAT), AGCO (AGCO), and CNH Industrial (CNHI) have fallen 2.4%, 15.3%, and 11.5%, respectively. Deere’s 14-day relative strength index score of 65 indicates that the stock isn’t overbought or oversold.

Investors could hold Deere indirectly through the iShares MSCI Global Agriculture Producers ETF (VEGI), which had 14.2% of its portfolio invested in Deere as of October 5.

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