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

Shares of Archer-Daniels-Midland Company (NYSE:ADM) have earned an average recommendation of “Reduce” from the fifteen brokerages that are currently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating and fourteen have assigned a hold rating to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $67.50.

Several brokerages have weighed in on ADM. BMO Capital Markets lowered their target price on Archer-Daniels-Midland from $66.00 to $60.00 and set a “market perform” rating for the company in a report on Wednesday, March 13th. Barclays cut shares of Archer-Daniels-Midland from an “overweight” rating to an “underweight” rating and set a $60.00 target price on the stock. in a report on Monday, January 22nd. Argus lowered shares of Archer-Daniels-Midland from a “buy” rating to a “hold” rating in a report on Tuesday, January 23rd. Roth Mkm downgraded shares of Archer-Daniels-Midland from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $98.00 to $66.00 in a research note on Monday, January 22nd. Finally, The Goldman Sachs Group downgraded shares of Archer-Daniels-Midland from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $90.00 to $67.00 in a research note on Monday, January 22nd.

Archer-Daniels-Midland Trading Up 0.2 %

NYSE ADM opened at $60.42 on Friday. Archer-Daniels-Midland has a 12 month low of $50.72 and a 12 month high of $87.30. The company’s 50-day moving average price is $57.91 and its 200-day moving average price is $65.77. The stock has a market cap of $30.32 billion, a PE ratio of 9.44 and a beta of 0.77. The company has a current ratio of 1.60, a quick ratio of 0.95 and a debt-to-equity ratio of 0.34.

Archer-Daniels-Midland (NYSE:ADM) last issued its earnings results on Tuesday, March 12th. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.07). The company had revenue of $22.98 billion for the quarter, compared to analysts’ expectations of $23.79 billion. Archer-Daniels-Midland had a return on equity of 15.25% and a net margin of 3.71%. The business’s revenue was down 11.4% compared to the same quarter last year. During the same period last year, the business posted $1.93 earnings per share. Equities research analysts forecast that Archer-Daniels-Midland will post 5.48 earnings per share for the current year.

Archer-Daniels-Midland Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 29th. Shareholders of record on Thursday, February 8th were issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 3.31%. The ex-dividend date of this dividend was Wednesday, February 7th. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.45. Archer-Daniels-Midland’s dividend payout ratio (DPR) is currently 31.25%.

Archer-Daniels-Midland declared that its Board of Directors has approved a stock buyback plan on Tuesday, March 12th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 6.4% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Institutional Trading of Archer-Daniels-Midland

Several large investors have recently bought and sold shares of ADM. PCA Investment Advisory Services Inc. acquired a new stake in shares of Archer-Daniels-Midland during the second quarter worth $25,000. Orion Capital Management LLC acquired a new stake in Archer-Daniels-Midland during the 3rd quarter worth about $28,000. Tompkins Financial Corp purchased a new stake in Archer-Daniels-Midland during the 3rd quarter valued at about $28,000. Legacy Financial Group LLC purchased a new position in shares of Archer-Daniels-Midland in the third quarter worth about $30,000. Finally, Operose Advisors LLC acquired a new stake in shares of Archer-Daniels-Midland during the third quarter worth about $30,000. Hedge funds and other institutional investors 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.