Archer-Daniels-Midland Company (NYSE:ADM) Receives Average Rating of “Reduce” from Analysts

Shares of Archer-Daniels-Midland Company (NYSE:ADM) have been given an average recommendation of “Reduce” by the nine ratings firms that are covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation and seven have issued a hold recommendation on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $55.11.

A number of research firms have recently commented on ADM. Morgan Stanley dropped their price objective on Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating on the stock in a report on Tuesday. Stephens cut their price objective on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a report on Tuesday, February 4th. Citigroup upped their target price on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a report on Wednesday, December 4th. BMO Capital Markets reduced their price target on shares of Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating for the company in a research report on Wednesday, February 5th. Finally, Bank of America dropped their price objective on Archer-Daniels-Midland from $54.00 to $48.00 and set an “underperform” rating on the stock in a report on Tuesday.

Hedge Funds Weigh In On Archer-Daniels-Midland

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Harbor Capital Advisors Inc. acquired a new stake in shares of Archer-Daniels-Midland in the 3rd quarter worth $25,000. Fairway Wealth LLC purchased a new position in Archer-Daniels-Midland during the fourth quarter worth about $25,000. Ashton Thomas Securities LLC purchased a new stake in Archer-Daniels-Midland in the 3rd quarter valued at approximately $26,000. Peterson Financial Group Inc. purchased a new position in shares of Archer-Daniels-Midland during the 3rd quarter worth approximately $28,000. Finally, Raleigh Capital Management Inc. lifted its holdings in shares of Archer-Daniels-Midland by 179.4% in the 4th quarter. Raleigh Capital Management Inc. now owns 556 shares of the company’s stock valued at $28,000 after buying an additional 357 shares during the period. 78.28% of the stock is currently owned by hedge funds and other institutional investors.

Archer-Daniels-Midland Price Performance

ADM stock opened at $46.47 on Friday. Archer-Daniels-Midland has a 1 year low of $45.01 and a 1 year high of $66.08. The firm has a market capitalization of $22.24 billion, a P/E ratio of 12.87 and a beta of 0.72. The company has a debt-to-equity ratio of 0.37, a current ratio of 5.44 and a quick ratio of 0.84. The business’s 50-day moving average is $50.56 and its two-hundred day moving average is $55.21.

Archer-Daniels-Midland (NYSE:ADM) last announced its quarterly earnings data on Tuesday, February 4th. The company reported $1.14 earnings per share for the quarter, beating analysts’ consensus estimates of $1.07 by $0.07. The business had revenue of $21.50 billion for the quarter, compared to analyst estimates of $22.77 billion. Archer-Daniels-Midland had a net margin of 2.10% and a return on equity of 10.44%. The company’s revenue was down 6.4% on a year-over-year basis. During the same period last year, the business earned $1.36 EPS. Analysts anticipate that Archer-Daniels-Midland will post 4.53 earnings per share for the current fiscal year.

Archer-Daniels-Midland announced that its board has approved a stock buyback program on Wednesday, December 11th that authorizes the company to buyback 100,000,000 shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Archer-Daniels-Midland Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 18th will be given a dividend of $0.51 per share. This represents a $2.04 dividend on an annualized basis and a yield of 4.39%. This is a boost from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Tuesday, February 18th. Archer-Daniels-Midland’s dividend payout ratio (DPR) is presently 56.51%.

About Archer-Daniels-Midland

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.