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

Archer Daniels Midland Company (NYSE:ADM) has been given an average rating of “Reduce” by the nine research firms that are currently covering the company, Marketbeat.com reports. Four equities research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $54.3750.

Several research analysts recently weighed in on ADM shares. UBS Group reaffirmed a “buy” rating on shares of Archer Daniels Midland in a research note on Monday, December 15th. JPMorgan Chase & Co. reissued an “underweight” rating and issued a $59.00 price target (down from $61.00) on shares of Archer Daniels Midland in a report on Wednesday, November 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Archer Daniels Midland in a research note on Wednesday, October 8th. Zacks Research lowered shares of Archer Daniels Midland from a “hold” rating to a “strong sell” rating in a research note on Friday, November 7th. Finally, Morgan Stanley cut shares of Archer Daniels Midland from an “equal weight” rating to an “underweight” rating and reduced their target price for the stock from $57.00 to $50.00 in a report on Tuesday, December 16th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ADM. Tiemann Investment Advisors LLC increased its position in shares of Archer Daniels Midland by 4.5% during the 3rd quarter. Tiemann Investment Advisors LLC now owns 4,085 shares of the company’s stock worth $244,000 after purchasing an additional 175 shares in the last quarter. Centennial Wealth Advisory LLC increased its holdings in shares of Archer Daniels Midland by 1.5% during the third quarter. Centennial Wealth Advisory LLC now owns 12,696 shares of the company’s stock worth $758,000 after buying an additional 184 shares in the last quarter. Beacon Financial Advisory LLC grew its position in Archer Daniels Midland by 1.0% during the 2nd quarter. Beacon Financial Advisory LLC now owns 18,505 shares of the company’s stock worth $977,000 after acquiring an additional 185 shares during the last quarter. Rothschild Investment LLC grew its position in Archer Daniels Midland by 9.7% during the 2nd quarter. Rothschild Investment LLC now owns 2,232 shares of the company’s stock worth $118,000 after acquiring an additional 198 shares during the last quarter. Finally, United Capital Financial Advisors LLC increased its holdings in Archer Daniels Midland by 1.6% during the 3rd quarter. United Capital Financial Advisors LLC now owns 12,897 shares of the company’s stock valued at $770,000 after purchasing an additional 198 shares in the last quarter. Hedge funds and other institutional investors own 78.28% of the company’s stock.

Archer Daniels Midland Price Performance

Shares of NYSE ADM opened at $57.93 on Monday. The company has a current ratio of 1.37, a quick ratio of 0.92 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $27.84 billion, a price-to-earnings ratio of 23.64, a price-to-earnings-growth ratio of 4.93 and a beta of 0.70. Archer Daniels Midland has a twelve month low of $40.98 and a twelve month high of $65.00. The business has a 50 day simple moving average of $59.33 and a 200-day simple moving average of $58.58.

Archer Daniels Midland (NYSE:ADM) last announced its quarterly earnings results on Tuesday, November 4th. The company reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. Archer Daniels Midland had a return on equity of 8.01% and a net margin of 1.43%.The business had revenue of $20.37 billion for the quarter, compared to the consensus estimate of $20.96 billion. During the same quarter last year, the business posted $1.09 EPS. The business’s revenue was up 2.2% on a year-over-year basis. Archer Daniels Midland has set its FY 2025 guidance at 3.250-3.500 EPS. As a group, equities research analysts expect 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 3.5%. Archer Daniels Midland’s payout ratio is 83.27%.

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.