Archer Daniels Midland Company (NYSE:ADM) Given Average Recommendation of “Reduce” by Brokerages

Shares of Archer Daniels Midland Company (NYSE:ADM) have been assigned an average recommendation of “Reduce” from the nine brokerages that are presently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell recommendation, five have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $57.00.

ADM has been the subject of a number of research reports. Zacks Research upgraded shares of Archer Daniels Midland from a “strong sell” rating to a “hold” rating in a research report on Friday, January 23rd. Morgan Stanley cut Archer Daniels Midland from an “equal weight” rating to an “underweight” rating and decreased their price objective for the company from $57.00 to $50.00 in a report on Tuesday, December 16th. UBS Group restated a “buy” rating on shares of Archer Daniels Midland in a research note on Monday, December 15th. Weiss Ratings reiterated a “hold (c)” rating on shares of Archer Daniels Midland in a research report on Wednesday, January 21st. Finally, JPMorgan Chase & Co. boosted their price target on Archer Daniels Midland from $60.00 to $61.00 and gave the company an “underweight” rating in a report on Wednesday, February 4th.

Insider Buying and Selling

In other news, Director David R. Mcatee II acquired 7,500 shares of the firm’s stock in a transaction on Thursday, February 5th. The stock was acquired at an average price of $64.90 per share, for a total transaction of $486,750.00. Following the completion of the transaction, the director owned 7,500 shares in the company, valued at approximately $486,750. The trade was a ∞ increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.70% of the company’s stock.

Hedge Funds Weigh In On Archer Daniels Midland

Several institutional investors and hedge funds have recently modified their holdings of ADM. Vanguard Group Inc. increased its position in shares of Archer Daniels Midland by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 59,180,117 shares of the company’s stock valued at $3,402,265,000 after buying an additional 536,265 shares in the last quarter. State Street Corp grew its stake in Archer Daniels Midland by 0.7% in the 2nd quarter. State Street Corp now owns 34,617,404 shares of the company’s stock valued at $1,827,107,000 after acquiring an additional 223,716 shares during the period. Charles Schwab Investment Management Inc. grew its stake in Archer Daniels Midland by 2.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 18,829,140 shares of the company’s stock valued at $1,082,487,000 after acquiring an additional 449,815 shares during the period. Dodge & Cox increased its holdings in Archer Daniels Midland by 13.4% in the 4th quarter. Dodge & Cox now owns 17,084,645 shares of the company’s stock worth $982,196,000 after acquiring an additional 2,016,101 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in Archer Daniels Midland by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 12,628,065 shares of the company’s stock worth $723,175,000 after acquiring an additional 109,556 shares during the period. Hedge funds and other institutional investors own 78.28% of the company’s stock.

Archer Daniels Midland Trading Up 0.0%

Archer Daniels Midland stock opened at $69.52 on Tuesday. The stock has a 50-day moving average price of $63.01 and a 200 day moving average price of $61.30. The company has a market capitalization of $33.41 billion, a price-to-earnings ratio of 31.32, a price-to-earnings-growth ratio of 0.93 and a beta of 0.71. Archer Daniels Midland has a 52 week low of $40.98 and a 52 week high of $70.09. The company has a quick ratio of 0.92, a current ratio of 11.20 and a debt-to-equity ratio of 0.33.

Archer Daniels Midland (NYSE:ADM) last posted its quarterly earnings results on Tuesday, February 3rd. The company reported $0.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.80 by $0.07. The company had revenue of $18.56 billion during the quarter, compared to analyst estimates of $21.03 billion. Archer Daniels Midland had a net margin of 1.34% and a return on equity of 7.39%. Archer Daniels Midland’s revenue for the quarter was down 13.7% compared to the same quarter last year. During the same period last year, the firm posted $1.14 EPS. Archer Daniels Midland has set its FY 2026 guidance at 3.600-4.250 EPS. Sell-side analysts anticipate that Archer Daniels Midland will post 4.31 EPS for the current year.

Archer Daniels Midland Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 17th will be issued a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 3.0%. This is a boost from Archer Daniels Midland’s previous quarterly dividend of $0.51. The ex-dividend date of this dividend is Tuesday, February 17th. Archer Daniels Midland’s payout ratio is currently 91.89%.

About Archer Daniels Midland

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.