Archer Daniels Midland Company (NYSE:ADM) Given Consensus Rating of “Reduce” by Analysts

Shares of Archer Daniels Midland Company (NYSE:ADM) have earned a consensus recommendation of “Reduce” from the nine research firms that are covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $54.50.

A number of research firms have recently commented on ADM. Zacks Research cut Archer Daniels Midland from a “hold” rating to a “strong sell” rating in a research note on Friday, November 7th. Weiss Ratings restated a “hold (c)” rating on shares of Archer Daniels Midland in a report on Wednesday, October 8th. JPMorgan Chase & Co. increased their target price on Archer Daniels Midland from $59.00 to $60.00 and gave the stock an “underweight” rating in a research note on Wednesday. UBS Group reissued a “buy” rating on shares of Archer Daniels Midland in a research note on Monday, December 15th. Finally, Morgan Stanley downgraded shares of Archer Daniels Midland from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $57.00 to $50.00 in a research note on Tuesday, December 16th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp lifted its holdings in shares of Archer Daniels Midland by 0.7% in the 2nd quarter. State Street Corp now owns 34,617,404 shares of the company’s stock worth $1,827,107,000 after buying an additional 223,716 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in shares of Archer Daniels Midland by 3.6% in the second quarter. Charles Schwab Investment Management Inc. now owns 18,076,118 shares of the company’s stock valued at $954,058,000 after acquiring an additional 620,794 shares in the last quarter. Dodge & Cox lifted its stake in Archer Daniels Midland by 130.1% in the third quarter. Dodge & Cox now owns 15,068,544 shares of the company’s stock worth $900,195,000 after acquiring an additional 8,518,920 shares during the period. Geode Capital Management LLC grew its holdings in Archer Daniels Midland by 2.3% during the 2nd quarter. Geode Capital Management LLC now owns 12,457,546 shares of the company’s stock worth $654,772,000 after acquiring an additional 283,207 shares in the last quarter. Finally, Norges Bank purchased a new position in Archer Daniels Midland during the 2nd quarter valued at about $340,247,000. Institutional investors own 78.28% of the company’s stock.

Archer Daniels Midland Stock Performance

NYSE:ADM opened at $67.10 on Friday. The firm has a market capitalization of $32.25 billion, a PE ratio of 27.39, a PEG ratio of 4.73 and a beta of 0.70. The stock’s fifty day moving average is $60.16 and its 200 day moving average is $59.66. Archer Daniels Midland has a fifty-two week low of $40.98 and a fifty-two week high of $68.05. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.92 and a current ratio of 1.37.

Archer Daniels Midland (NYSE:ADM) last posted its quarterly earnings data on Tuesday, November 4th. The company reported $0.92 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. Archer Daniels Midland had a net margin of 1.43% and a return on equity of 8.01%. The business had revenue of $20.37 billion for the quarter, compared to analysts’ expectations of $20.96 billion. During the same quarter in the previous year, the business posted $1.09 earnings per share. The business’s revenue was up 2.2% compared to the same quarter last year. Archer Daniels Midland has set its FY 2025 guidance at 3.250-3.500 EPS. On average, sell-side analysts anticipate that Archer Daniels Midland will post 4.31 earnings per share for the current year.

Archer Daniels Midland Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, December 11th. Stockholders of record on Wednesday, November 19th were given a dividend of $0.51 per share. The ex-dividend date of this dividend was Wednesday, November 19th. This represents a $2.04 dividend on an annualized basis and a dividend yield of 3.0%. Archer Daniels Midland’s dividend payout ratio (DPR) is 83.27%.

Archer Daniels Midland Company Profile

Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.

ADM’s business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.