Archer-Daniels-Midland (NYSE:ADM) Cut to “Underperform” at Bank of America

Bank of America cut shares of Archer-Daniels-Midland (NYSE:ADM) from a neutral rating to an underperform rating in a report released on Tuesday, Marketbeat.com reports. The firm currently has $54.00 price objective on the stock, down from their previous price objective of $63.00.

ADM has been the subject of a number of other reports. Stephens started coverage on Archer-Daniels-Midland in a research note on Wednesday, December 11th. They set an “equal weight” rating and a $55.00 target price for the company. Citigroup raised their price objective on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. BMO Capital Markets reduced their target price on shares of Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating for the company in a research note on Wednesday, December 4th. Morgan Stanley dropped their price target on Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating on the stock in a research note on Tuesday, November 12th. Finally, Barclays reduced their price objective on Archer-Daniels-Midland from $60.00 to $56.00 and set an “underweight” rating for the company in a research report on Wednesday, December 4th. Two analysts have rated the stock with a sell rating and fourteen have assigned a hold rating to the stock. Based on data from MarketBeat.com, Archer-Daniels-Midland currently has an average rating of “Hold” and an average price target of $59.08.

Archer-Daniels-Midland Stock Down 0.3 %

NYSE:ADM opened at $51.00 on Tuesday. The stock has a market cap of $24.40 billion, a price-to-earnings ratio of 14.57 and a beta of 0.72. The company has a current ratio of 1.40, a quick ratio of 0.84 and a debt-to-equity ratio of 0.34. The stock has a 50-day moving average price of $51.78 and a two-hundred day moving average price of $56.98. Archer-Daniels-Midland has a 1 year low of $48.40 and a 1 year high of $69.51.

Archer-Daniels-Midland declared that its Board of Directors has authorized a share repurchase program on Wednesday, December 11th that allows the company to buyback 100,000,000 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Archer-Daniels-Midland Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st were given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 3.92%. The ex-dividend date of this dividend was Thursday, November 21st. Archer-Daniels-Midland’s dividend payout ratio (DPR) is currently 57.14%.

Hedge Funds Weigh In On Archer-Daniels-Midland

Several institutional investors and hedge funds have recently modified their holdings of the stock. Uncommon Cents Investing LLC grew its stake in Archer-Daniels-Midland by 1.9% in the 4th quarter. Uncommon Cents Investing LLC now owns 91,930 shares of the company’s stock valued at $4,644,000 after buying an additional 1,735 shares during the last quarter. Monarch Capital Management Inc. grew its position in shares of Archer-Daniels-Midland by 9.1% in the fourth quarter. Monarch Capital Management Inc. now owns 12,080 shares of the company’s stock valued at $610,000 after purchasing an additional 1,010 shares during the last quarter. HB Wealth Management LLC increased its stake in shares of Archer-Daniels-Midland by 2.2% during the fourth quarter. HB Wealth Management LLC now owns 35,359 shares of the company’s stock worth $1,786,000 after purchasing an additional 768 shares during the period. Verity & Verity LLC lifted its holdings in Archer-Daniels-Midland by 7.8% during the 4th quarter. Verity & Verity LLC now owns 170,273 shares of the company’s stock worth $8,602,000 after purchasing an additional 12,388 shares during the last quarter. Finally, Folger Nolan Fleming Douglas Capital Management Inc. boosted its stake in Archer-Daniels-Midland by 2.7% in the 4th quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 13,144 shares of the company’s stock valued at $664,000 after purchasing an additional 350 shares during the period. 78.28% of the stock is currently owned by institutional investors and hedge funds.

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.