Archer-Daniels-Midland (NYSE:ADM) Price Target Cut to $48.00 by Analysts at Bank of America

Archer-Daniels-Midland (NYSE:ADM) had its price objective trimmed by Bank of America from $54.00 to $48.00 in a report released on Tuesday morning,Benzinga reports. The brokerage currently has an underperform rating on the stock.

ADM has been the topic of several other research reports. Stephens dropped their target price on Archer-Daniels-Midland from $55.00 to $52.00 in a report on Tuesday, February 4th. BMO Capital Markets decreased their price objective on shares of Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating for the company in a research note on Wednesday, February 5th. Citigroup upped their price objective on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a research note on Wednesday, December 4th. Barclays decreased their price objective 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, Morgan Stanley decreased their price objective on shares of Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 12th. Two equities research analysts have rated the stock with a sell rating and seven have issued a hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $55.11.

Archer-Daniels-Midland Stock Performance

NYSE:ADM opened at $46.47 on Tuesday. The firm has a market capitalization of $22.24 billion, a PE ratio of 12.87 and a beta of 0.72. The business’s fifty day moving average price is $50.56 and its 200 day moving average price is $55.21. The company has a debt-to-equity ratio of 0.37, a current ratio of 5.44 and a quick ratio of 0.84. Archer-Daniels-Midland has a 12 month low of $45.01 and a 12 month high of $66.08.

Archer-Daniels-Midland (NYSE:ADM) last posted its earnings results on Tuesday, February 4th. The company reported $1.14 EPS for the quarter, beating the consensus estimate of $1.07 by $0.07. The firm 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%. Archer-Daniels-Midland’s revenue for the quarter was down 6.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.36 earnings per share. On average, sell-side analysts anticipate that Archer-Daniels-Midland will post 4.53 earnings per share for the current fiscal year.

Archer-Daniels-Midland declared that its Board of Directors has initiated a share buyback plan 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 plans are typically an indication that the company’s management believes its stock is undervalued.

Archer-Daniels-Midland Increases Dividend

The company 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 $0.51 dividend. The ex-dividend date of this dividend is Tuesday, February 18th. This represents a $2.04 dividend on an annualized basis and a yield of 4.39%. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. Archer-Daniels-Midland’s dividend payout ratio (DPR) is presently 56.51%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ADM. Kieckhefer Group LLC purchased a new position in shares of Archer-Daniels-Midland during the 4th quarter worth approximately $2,339,000. Empower Advisory Group LLC increased its stake in shares of Archer-Daniels-Midland by 6.4% during the 3rd quarter. Empower Advisory Group LLC now owns 1,138,455 shares of the company’s stock worth $68,011,000 after purchasing an additional 68,133 shares in the last quarter. Nordea Investment Management AB increased its stake in shares of Archer-Daniels-Midland by 30.7% during the 4th quarter. Nordea Investment Management AB now owns 2,082,442 shares of the company’s stock worth $105,163,000 after purchasing an additional 489,217 shares in the last quarter. Pacer Advisors Inc. increased its stake in shares of Archer-Daniels-Midland by 6.4% during the 3rd quarter. Pacer Advisors Inc. now owns 8,086,446 shares of the company’s stock worth $483,084,000 after purchasing an additional 489,554 shares in the last quarter. Finally, Marathon Asset Management Ltd increased its stake in shares of Archer-Daniels-Midland by 4.5% during the 3rd quarter. Marathon Asset Management Ltd now owns 303,155 shares of the company’s stock worth $18,110,000 after purchasing an additional 13,177 shares in the last quarter. 78.28% of the stock is owned by hedge funds and other institutional investors.

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.