Archer-Daniels-Midland Company (NYSE:ADM) Receives Average Recommendation of “Reduce” from Analysts

Shares of Archer-Daniels-Midland Company (NYSE:ADM) have been assigned a consensus recommendation of “Reduce” from the fifteen analysts that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation and fourteen have issued a hold recommendation on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $60.62.

Several research firms have commented on ADM. Barclays lowered their target price on shares of Archer-Daniels-Midland from $60.00 to $56.00 and set an “underweight” rating on the stock in a research note on Wednesday, December 4th. Citigroup raised 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. BMO Capital Markets cut their target price on Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating for the company in a research report on Wednesday, December 4th. Stephens assumed coverage on Archer-Daniels-Midland in a research report on Wednesday, December 11th. They set an “equal weight” rating and a $55.00 price target on the stock. Finally, Morgan Stanley cut their price objective on Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating for the company in a report on Tuesday, November 12th.

Archer-Daniels-Midland Price Performance

Shares of ADM opened at $51.13 on Monday. Archer-Daniels-Midland has a one year low of $48.40 and a one year high of $70.51. The stock’s fifty day moving average is $51.90 and its 200-day moving average is $57.15. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 1.40. The firm has a market capitalization of $24.47 billion, a price-to-earnings ratio of 14.61 and a beta of 0.72.

Archer-Daniels-Midland Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Stockholders of record on Thursday, November 21st were issued a dividend of $0.50 per share. The ex-dividend date was Thursday, November 21st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.91%. Archer-Daniels-Midland’s dividend payout ratio is currently 57.14%.

Archer-Daniels-Midland declared that its board has authorized a stock repurchase plan on Wednesday, December 11th that allows the company to buyback 100,000,000 outstanding shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Institutional Trading of Archer-Daniels-Midland

A number of hedge funds have recently made changes to their positions in the stock. Harbor Capital Advisors Inc. acquired a new position in Archer-Daniels-Midland in the 3rd quarter valued at approximately $25,000. Ashton Thomas Securities LLC acquired a new position in shares of Archer-Daniels-Midland in the third quarter worth $26,000. Altshuler Shaham Ltd purchased a new stake in shares of Archer-Daniels-Midland during the second quarter worth $28,000. Peterson Financial Group Inc. acquired a new stake in Archer-Daniels-Midland during the third quarter valued at $28,000. Finally, ST Germain D J Co. Inc. grew its stake in Archer-Daniels-Midland by 724.6% in the fourth quarter. ST Germain D J Co. Inc. now owns 569 shares of the company’s stock valued at $29,000 after purchasing an additional 500 shares in the last quarter. 78.28% of the stock is owned by hedge funds and other institutional investors.

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.