Deere & Company Shares Are Getting Plowed

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Deere & Company DE shares were trading lower by $2.85 at $89.36 in Friday's session. The ax in the stock is JP Morgan, which downgraded the issue from Neutral to Underweight and lowered its price target from $90 to $84.

The firm cited an upcoming "liquidity crunch" for farmers that will put a crimp in equipment sales.

The Street is siding with JP Morgan as it has been under-selling pressure since the opening bell. After a lower open ($90.30 versus Thursday's close of $92.21), it managed a brief pop to $90.65 before sliding towards the $89 and is continuing to make new lows for the session.

Next stop for Deere is the pair low lows from May 7 ($89.03) and May 8 ($89.07).

Today's decline is taking place on heavier than average volume as it has already traded 2.4 million shares compared with its 20-day average of 2.1 million with five hours remaining in the session.

Editor's note: At time of publication, shares were down $3.33 at $88.86.