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

Shares of Archer Daniels Midland Company (NYSE:ADM) have been given a consensus recommendation of “Reduce” by the eight research firms that are currently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and one has issued a buy rating on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $75.6667.

A number of brokerages have commented on ADM. Wall Street Zen upgraded shares of Archer Daniels Midland from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Morgan Stanley boosted their target price on Archer Daniels Midland from $58.00 to $60.00 and gave the stock an “underweight” rating in a research report on Monday. Jefferies Financial Group raised their price target on Archer Daniels Midland from $65.00 to $77.00 and gave the company a “hold” rating in a report on Monday, April 6th. Barclays boosted their target price on shares of Archer Daniels Midland from $77.00 to $85.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Finally, UBS Group upped their price target on shares of Archer Daniels Midland from $90.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, June 15th.

Archer Daniels Midland Stock Performance

Shares of Archer Daniels Midland stock opened at $86.09 on Friday. The firm’s fifty day simple moving average is $79.55 and its 200-day simple moving average is $72.66. Archer Daniels Midland has a 12 month low of $52.96 and a 12 month high of $87.33. The stock has a market capitalization of $41.49 billion, a price-to-earnings ratio of 38.61 and a beta of 0.62. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.31 and a quick ratio of 0.80.

Archer Daniels Midland (NYSE:ADM) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.05. Archer Daniels Midland had a return on equity of 7.37% and a net margin of 1.34%.The firm had revenue of $20.49 billion for the quarter, compared to analyst estimates of $21.35 billion. During the same quarter last year, the company posted $0.70 earnings per share. The business’s revenue was up 1.6% on a year-over-year basis. Archer Daniels Midland has set its FY 2026 guidance at 4.150-4.70 EPS. As a group, equities analysts forecast that Archer Daniels Midland will post 4.71 earnings per share for the current year.

Archer Daniels Midland Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th were paid a dividend of $0.52 per share. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $2.08 annualized dividend and a dividend yield of 2.4%. Archer Daniels Midland’s payout ratio is 93.27%.

Institutional Investors Weigh In On Archer Daniels Midland

Several institutional investors and hedge funds have recently made changes to their positions in ADM. Quadrant Capital Group LLC boosted its stake in shares of Archer Daniels Midland by 0.6% in the 4th quarter. Quadrant Capital Group LLC now owns 23,166 shares of the company’s stock valued at $1,332,000 after purchasing an additional 146 shares in the last quarter. Atlantic Union Bankshares Corp increased its position in shares of Archer Daniels Midland by 5.1% during the 4th quarter. Atlantic Union Bankshares Corp now owns 3,127 shares of the company’s stock worth $180,000 after purchasing an additional 153 shares in the last quarter. Summit Financial LLC lifted its holdings in Archer Daniels Midland by 0.9% during the 4th quarter. Summit Financial LLC now owns 16,947 shares of the company’s stock valued at $974,000 after purchasing an additional 153 shares during the last quarter. Brookstone Capital Management boosted its position in Archer Daniels Midland by 4.5% in the fourth quarter. Brookstone Capital Management now owns 3,555 shares of the company’s stock valued at $204,000 after buying an additional 154 shares in the last quarter. Finally, Checchi Capital Advisers LLC grew its stake in Archer Daniels Midland by 2.6% during the fourth quarter. Checchi Capital Advisers LLC now owns 6,436 shares of the company’s stock worth $370,000 after buying an additional 161 shares during the last quarter. 78.28% of the stock is currently owned by hedge funds and other institutional investors.

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.