Evercore ISI downgraded DE and CNHI to “in line” from “outperform”
Evercore ISI downgraded both Deere & Co (NYSE:DE) and CNH Industrial NV (NYSE:CNHI) to “in line” from “outperform” today, citing agricultural production cuts. Both stocks are dipping after the bear note; DE is down 2.8% to trade at $399.19 at last glance, while CNHI is off 4.3% at $12.79.
On the charts, familiar support at the $400 region is capturing Deere stock’s pullback. Plus, its 320-day moving average, which captured the stock’s late-August dip, lingers below as potential support. Year-to-date, DE is down 6.7%.
CNHI, on the other hand, is seeing pressure from a host of short- and long-term trendlines, dipping below its 20-day moving average today. It’s also worth noting that the stock’s implied volatility (IV) hit a 52-week low today. Since the start of the year, the equity is down 20%.
Meanwhile, it looks like a good time to weigh in on both of these stocks with options. DE’s Schaeffer’s Volatility Index (SVI) of 20% ranks in the low 10th percentile of its annual range, while CNHI’s SVI of 30% sits in the 9th percentile. This means options traders are pricing in low volatility expectations for both.