Archer-Daniels-Midland (NYSE:ADM) Sets New 12-Month Low – Here’s Why

Archer-Daniels-Midland Company (NYSE:ADM) reached a new 52-week low during trading on Thursday . The stock traded as low as $44.96 and last traded at $45.04, with a volume of 341289 shares traded. The stock had previously closed at $45.22.

Analyst Ratings Changes

ADM has been the subject of a number of analyst reports. Bank of America decreased 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 research report on Tuesday. BMO Capital Markets lowered their price objective on Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating for the company in a research report on Wednesday, February 5th. Morgan Stanley decreased their price target on Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating for the company in a research note on Tuesday. Barclays lowered their target price on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating for the company in a research note on Tuesday, January 21st. Finally, Citigroup boosted their price target on Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a research note on Wednesday, December 4th. Two research analysts have rated the stock with a sell rating and seven have given a hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $55.11.

Archer-Daniels-Midland Trading Up 0.5 %

The company has a current ratio of 5.44, a quick ratio of 0.84 and a debt-to-equity ratio of 0.37. The firm has a market cap of $21.75 billion, a price-to-earnings ratio of 12.58 and a beta of 0.72. The company has a fifty day moving average price of $50.29 and a 200-day moving average price of $55.01.

Archer-Daniels-Midland (NYSE:ADM) last released its earnings results on Tuesday, February 4th. The company reported $1.14 EPS for the quarter, topping analysts’ consensus estimates of $1.07 by $0.07. The business had revenue of $21.50 billion during the quarter, compared to analysts’ expectations of $22.77 billion. Archer-Daniels-Midland had a net margin of 2.10% and a return on equity of 10.44%. The company’s quarterly revenue was down 6.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.36 earnings per share. As a group, research analysts expect that Archer-Daniels-Midland Company will post 4.53 EPS for the current year.

Archer-Daniels-Midland Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 18th will be given a dividend of $0.51 per share. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. The ex-dividend date is Tuesday, February 18th. This represents a $2.04 dividend on an annualized basis and a yield of 4.49%. Archer-Daniels-Midland’s dividend payout ratio (DPR) is presently 55.40%.

Archer-Daniels-Midland announced that its Board of Directors has initiated a share repurchase program on Wednesday, December 11th that authorizes the company to repurchase 100,000,000 shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Renaissance Technologies LLC boosted its holdings in Archer-Daniels-Midland by 31.6% in the 4th quarter. Renaissance Technologies LLC now owns 378,000 shares of the company’s stock valued at $19,097,000 after purchasing an additional 90,700 shares during the last quarter. Rathbones Group PLC raised its stake in shares of Archer-Daniels-Midland by 13.6% in the 4th quarter. Rathbones Group PLC now owns 24,767 shares of the company’s stock valued at $1,251,000 after acquiring an additional 2,965 shares during the period. Twin Capital Management Inc. lifted its holdings in shares of Archer-Daniels-Midland by 2.1% in the 4th quarter. Twin Capital Management Inc. now owns 42,445 shares of the company’s stock worth $2,144,000 after acquiring an additional 893 shares during the last quarter. Invesco Ltd. boosted its position in shares of Archer-Daniels-Midland by 24.8% during the 4th quarter. Invesco Ltd. now owns 7,145,818 shares of the company’s stock worth $361,007,000 after purchasing an additional 1,420,625 shares during the period. Finally, Sumitomo Mitsui Financial Group Inc. raised its position in Archer-Daniels-Midland by 1.5% in the fourth quarter. Sumitomo Mitsui Financial Group Inc. now owns 169,475 shares of the company’s stock valued at $8,562,000 after purchasing an additional 2,502 shares during the period. Institutional investors and hedge funds own 78.28% of the company’s stock.

Archer-Daniels-Midland Company Profile

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.