According to a Wall Street Journal report, farm and construction equipment maker Deere & Company ( DE ) is being investigated by the Securities and Exchange Commission (SEC) for allegedly bribing foreign officials.
Citing two people familiar with the matter, the report claims that Deere received an inquiry in July regarding payments made to officials in Russia and other nearby countries.
Those payments could be in violation of the Foreign Corrupt Practices Act, which was designed to prevent companies from bribing foreign officials to obtain lucrative contracts.
A Deere spokesman commented, "The SEC has informed Deere that this is a non-public fact-finding inquiry to determine whether there have been any violations of the federal securities laws, and that the inquiry and document request do not mean that the SEC has concluded that Deere has broken the law."
Deere shares fell 67 cents, or -1%, in premarket trading Thursday.
The Bottom Line
Shares of Deere ( DE ) have a 2.42% dividend yield, based on last night's closing stock price of $67.89. The stock has technical support in the $62-$65 price area. If the shares can firm up, we see overhead resistance around the $75 price level.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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