Archer-Daniels-Midland Company (NYSE:ADM) Sees Large Decrease in Short Interest

Archer-Daniels-Midland Company (NYSE:ADM) saw a large decline in short interest during the month of January. As of January 31st, there was short interest totalling 9,360,000 shares, a decline of 13.3% from the January 15th total of 10,800,000 shares. Approximately 2.0% of the company’s stock are sold short. Based on an average trading volume of 3,340,000 shares, the short-interest ratio is currently 2.8 days.

Archer-Daniels-Midland Price Performance

Shares of ADM stock traded up $0.41 on Friday, reaching $46.12. 3,382,066 shares of the company were exchanged, compared to its average volume of 3,699,266. The company has a market cap of $22.07 billion, a price-to-earnings ratio of 12.77 and a beta of 0.72. The business has a 50-day moving average price of $50.06 and a 200 day moving average price of $54.78. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.84 and a current ratio of 5.44. Archer-Daniels-Midland has a 1 year low of $44.92 and a 1 year high of $66.08.

Archer-Daniels-Midland (NYSE:ADM) last posted its quarterly earnings results on Tuesday, February 4th. The company reported $1.14 EPS for the quarter, topping the consensus estimate 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 return on equity of 10.44% and a net margin of 2.10%. The company’s quarterly revenue was down 6.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.36 EPS. Equities research analysts forecast that Archer-Daniels-Midland will post 4.53 earnings per share for the current fiscal year.

Archer-Daniels-Midland Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 18th will be given a dividend of $0.51 per share. The ex-dividend date is Tuesday, February 18th. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. This represents a $2.04 dividend on an annualized basis and a dividend yield of 4.42%. Archer-Daniels-Midland’s payout ratio is currently 56.51%.

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

Wall Street Analyst Weigh In

ADM has been the subject of a number of research analyst reports. Morgan Stanley cut their target price on shares of Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating for the company in a research report on Tuesday, February 11th. Citigroup upped their target price on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. Bank of America dropped their target price on shares of Archer-Daniels-Midland from $54.00 to $48.00 and set an “underperform” rating for the company in a report on Tuesday, February 11th. Stephens decreased their price target on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a research note on Tuesday, February 4th. Finally, Barclays decreased their target price on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 21st. Two equities research analysts have rated the stock with a sell rating and seven have given a hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $55.11.

Institutional Investors Weigh In On Archer-Daniels-Midland

Institutional investors have recently added to or reduced their stakes in the business. Lake Street Advisors Group LLC raised its stake in shares of Archer-Daniels-Midland by 4.8% during the third quarter. Lake Street Advisors Group LLC now owns 4,015 shares of the company’s stock worth $240,000 after purchasing an additional 183 shares during the last quarter. OLD National Bancorp IN grew its holdings in Archer-Daniels-Midland by 0.9% in the third quarter. OLD National Bancorp IN now owns 20,648 shares of the company’s stock valued at $1,234,000 after purchasing an additional 189 shares during the last quarter. NorthCrest Asset Manangement LLC grew its holdings in Archer-Daniels-Midland by 4.1% in the third quarter. NorthCrest Asset Manangement LLC now owns 5,125 shares of the company’s stock valued at $306,000 after purchasing an additional 201 shares during the last quarter. West Financial Advisors LLC lifted its position in shares of Archer-Daniels-Midland by 10.1% in the fourth quarter. West Financial Advisors LLC now owns 2,201 shares of the company’s stock valued at $111,000 after acquiring an additional 201 shares in the last quarter. Finally, Hantz Financial Services Inc. lifted its position in shares of Archer-Daniels-Midland by 10.8% in the fourth quarter. Hantz Financial Services Inc. now owns 2,152 shares of the company’s stock valued at $109,000 after acquiring an additional 210 shares in the last quarter. Hedge funds and other institutional investors own 78.28% of the company’s stock.

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.