On August 25, Deere declined 3.1% in regular trading, trading at $628.34 per share with turnover of $313 million, as labor concerns weighed on investor sentiment following the weekend news of a contract rejection.

Deere union workers voted to reject a proposal to extend their current contract by two years, setting the stage for contentious negotiations with the United Auto Workers in 2027. The proposal offered 4% annual raises and $3,000 bonuses, but UAW President Shawn Fain stated it failed to address job security, outsourcing, and the return of 1,600 laid-off workers. Deere rejected the UAW's counteroffer, saying it would cost approximately $500 million more. The current six-year contract expires in 2027.

The pullback comes after Deere shares had rallied following strong fiscal Q3 results reported on August 20, with EPS of $5.10 beating estimates of $4.70 and net sales of $12.61 billion significantly exceeding the $10.81 billion consensus. Multiple analysts subsequently raised price targets, with DA Davidson lifting its target to $760 and Daiwa Securities to $705.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)