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

Archer-Daniels-Midland Company (NYSE:ADM) has earned an average rating of “Reduce” from the nine analysts that are covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating and seven have issued a hold rating on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $56.33.

ADM has been the topic of several research reports. BMO Capital Markets decreased their target price on Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating on the stock in a research report on Wednesday. Barclays lowered their price objective on Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 21st. Stephens cut their price target on Archer-Daniels-Midland from $55.00 to $52.00 in a research note on Tuesday. Citigroup lifted their price target on Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a research note on Wednesday, December 4th. Finally, Bank of America downgraded Archer-Daniels-Midland from a “neutral” rating to an “underperform” rating and cut their price objective for the company from $63.00 to $54.00 in a report on Tuesday, January 14th.

Archer-Daniels-Midland Stock Down 2.1 %

NYSE ADM opened at $45.48 on Friday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 1.40. Archer-Daniels-Midland has a 52 week low of $45.01 and a 52 week high of $66.08. The stock has a market capitalization of $21.76 billion, a P/E ratio of 12.99 and a beta of 0.72. The stock has a fifty day moving average of $51.08 and a 200-day moving average of $55.62.

Archer-Daniels-Midland (NYSE:ADM) last issued its quarterly earnings data on Tuesday, February 4th. The company reported $1.14 EPS for the quarter, topping analysts’ consensus estimates of $1.07 by $0.07. Archer-Daniels-Midland had a net margin of 2.07% and a return on equity of 10.96%. The business had revenue of $21.50 billion for the quarter, compared to analyst estimates of $22.77 billion. During the same period last year, the business posted $1.36 earnings per share. The firm’s quarterly revenue was down 6.4% on a year-over-year basis. On average, equities research analysts forecast that Archer-Daniels-Midland will post 4.72 EPS for the current year.

Archer-Daniels-Midland Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 18th will be given a dividend of $0.51 per share. The ex-dividend date is Tuesday, February 18th. This represents a $2.04 annualized dividend and a dividend yield of 4.49%. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. Archer-Daniels-Midland’s dividend payout ratio (DPR) is 57.14%.

Archer-Daniels-Midland announced that its board has approved a stock repurchase program on Wednesday, December 11th that allows the company to repurchase 100,000,000 shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Park Avenue Securities LLC lifted its holdings in Archer-Daniels-Midland by 3.9% during the third quarter. Park Avenue Securities LLC now owns 8,272 shares of the company’s stock valued at $494,000 after purchasing an additional 311 shares in the last quarter. Czech National Bank boosted its holdings in shares of Archer-Daniels-Midland by 3.4% during the 3rd quarter. Czech National Bank now owns 97,402 shares of the company’s stock valued at $5,819,000 after purchasing an additional 3,182 shares during the last quarter. Atomi Financial Group Inc. grew its position in shares of Archer-Daniels-Midland by 3.3% during the third quarter. Atomi Financial Group Inc. now owns 6,591 shares of the company’s stock valued at $394,000 after purchasing an additional 210 shares in the last quarter. Future Financial Wealth Managment LLC bought a new stake in shares of Archer-Daniels-Midland in the third quarter worth about $112,000. Finally, CWM LLC boosted its stake in Archer-Daniels-Midland by 12.7% during the third quarter. CWM LLC now owns 28,341 shares of the company’s stock valued at $1,693,000 after buying an additional 3,190 shares during 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.