Why AGCO (AGCO) Shares Are Trading Lower Today

What Happened?

Shares of agricultural and farm machinery company AGCO (NYSE:AGCO) fell 4.9% in the afternoon session after industry peer Caterpillar warned that tariffs would have a significant negative impact on its financial results. 

Caterpillar, a major manufacturer of farm and construction equipment, stated in a regulatory filing that it anticipates tariffs will cost the company between $1.5 billion and $1.8 billion for 2025, leading its shares to drop by 4.5%. This announcement has created broader concerns for the entire sector. 

The shares closed the day at $108.11, down 4.4% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AGCO? Access our full analysis report here, it’s free.

What Is The Market Telling Us

AGCO’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock dropped 3.4% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.

AGCO is up 18.5% since the beginning of the year, and at $108.19 per share, it is trading close to its 52-week high of $117.97 from July 2025. Investors who bought $1,000 worth of AGCO’s shares 5 years ago would now be looking at an investment worth $1,522.

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