Archer Daniels Midland (NYSE:ADM) Stock Falls 5.5% – Here’s Why

Archer Daniels Midland Company (NYSE:ADM) traded down 5.5% during mid-day trading on Tuesday. The stock traded as low as $71.24 and last traded at $71.5850. Approximately 546,764 shares traded hands during trading, a decline of 85% from the average daily volume of 3,692,667 shares. The stock had previously closed at $75.77.

Archer Daniels Midland News Summary

Here are the key news stories impacting Archer Daniels Midland this week:

• Positive Sentiment: ADM reported third-quarter adjusted earnings of $1.77 per share, exceeding the $1.60 consensus estimate and nearly doubling the $0.92 earned in the year-ago quarter. ADM earnings report and conference call
• Positive Sentiment: The company raised its 2026 adjusted EPS outlook to approximately $5.50-$5.80, up from its prior range of $5.15-$5.60. Management attributed the improved outlook in part to stronger processing margins. Reuters ADM earnings coverage
• Positive Sentiment: Third-quarter net earnings were $821 million, while adjusted net earnings reached $858 million. Revenue increased 9.6% year over year, indicating continued top-line growth. ADM third-quarter results
• Neutral Sentiment: ADM’s return on equity was 9.21% and net margin was 2.16%, highlighting that profitability remains relatively narrow despite the quarterly improvement.
• Negative Sentiment: Quarterly revenue of $22.34 billion fell short of the $23.27 billion analyst estimate. The revenue miss may be overshadowing the EPS beat and guidance increase, helping explain why the shares have declined.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ADM. Barclays increased their target price on Archer Daniels Midland from $85.00 to $90.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. lowered their price target on Archer Daniels Midland from $77.00 to $75.00 and set an “underweight” rating for the company in a research report on Monday, October 12th. Weiss Ratings downgraded Archer Daniels Midland from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 28th. William Blair began coverage on Archer Daniels Midland in a research note on Tuesday, September 15th. They set a “buy” rating for the company. Finally, Morgan Stanley upgraded Archer Daniels Midland from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $60.00 to $79.00 in a report on Wednesday, August 5th. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $81.75.

Archer Daniels Midland Trading Down 4.6%

The stock has a market capitalization of $34.83 billion, a PE ratio of 19.73, a PEG ratio of 2.33 and a beta of 0.64. The company has a current ratio of 1.39, a quick ratio of 0.86 and a debt-to-equity ratio of 0.27. The business’s 50-day moving average is $81.79 and its two-hundred day moving average is $76.45.

Archer Daniels Midland (NYSE:ADM) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $1.77 EPS for the quarter, beating the consensus estimate of $1.60 by $0.17. The company had revenue of $22.34 billion for the quarter, compared to analyst estimates of $23.27 billion. Archer Daniels Midland had a return on equity of 9.21% and a net margin of 2.16%. The firm’s revenue was up 9.6% compared to the same quarter last year. During the same period last year, the company posted $0.92 earnings per share. On average, analysts predict that Archer Daniels Midland Company will post 5.52 earnings per share for the current year.

Archer Daniels Midland Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Wednesday, August 19th were issued a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a dividend yield of 2.9%. The ex-dividend date was Wednesday, August 19th. Archer Daniels Midland’s dividend payout ratio (DPR) is presently 56.99%.

Hedge Funds Weigh In On Archer Daniels Midland

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Archer Daniels Midland during the second quarter valued at $3,409,089,000. Bank of New York Mellon Corp acquired a new stake in Archer Daniels Midland during the 2nd quarter worth about $257,394,000. Legal & General Group Plc acquired a new stake in Archer Daniels Midland during the 2nd quarter worth about $198,233,000. Bank of America Corp DE acquired a new stake in Archer Daniels Midland during the 2nd quarter worth about $180,096,000. Finally, Deutsche Bank AG purchased a new position in Archer Daniels Midland during the 2nd quarter valued at about $178,087,000. Hedge funds and other institutional investors own 78.28% of the company’s stock.

Archer Daniels Midland Company Profile

Archer Daniels Midland Company (NYSE: ADM) is a global agricultural origination and processing company. Founded in 1902, ADM connects farmers and producers with markets worldwide by sourcing, transporting, storing and processing crops and other agricultural commodities.

The company processes oilseeds, corn, wheat and other crops into ingredients and products used in food and beverages, animal nutrition, renewable fuels and industrial applications. Its offerings include vegetable oils, protein meals, sweeteners, starches, flour, food ingredients, animal feed ingredients and biofuels, as well as specialty ingredients developed through its nutrition businesses.

ADM operates an integrated network of agricultural facilities, processing plants, transportation assets and commercial offices serving customers across North America, South America, Europe, Asia and other international markets.