Scissortail Wealth Management LLC Invests $701,000 in Archer-Daniels-Midland Company (NYSE:ADM)

Scissortail Wealth Management LLC purchased a new position in shares of Archer-Daniels-Midland Company (NYSE:ADM) in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 9,710 shares of the company’s stock, valued at approximately $701,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. PCA Investment Advisory Services Inc. purchased a new position in shares of Archer-Daniels-Midland during the second quarter worth $25,000. Orion Capital Management LLC purchased a new position in Archer-Daniels-Midland in the third quarter valued at $28,000. Tompkins Financial Corp purchased a new position in Archer-Daniels-Midland in the third quarter valued at $28,000. Legacy Financial Group LLC purchased a new position in Archer-Daniels-Midland in the third quarter valued at $30,000. Finally, Operose Advisors LLC purchased a new position in Archer-Daniels-Midland in the third quarter valued at $30,000. 78.28% of the stock is currently owned by hedge funds and other institutional investors.

Archer-Daniels-Midland Price Performance

Shares of ADM traded down $0.25 during trading hours on Wednesday, reaching $60.27. The company had a trading volume of 3,032,359 shares, compared to its average volume of 3,898,910. The firm has a 50 day simple moving average of $57.76 and a 200-day simple moving average of $65.81. The company has a current ratio of 1.60, a quick ratio of 0.95 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $30.24 billion, a price-to-earnings ratio of 9.42 and a beta of 0.77. Archer-Daniels-Midland Company has a 12-month low of $50.72 and a 12-month high of $87.30.

Archer-Daniels-Midland (NYSE:ADM) last announced its quarterly earnings results on Tuesday, March 12th. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.07). The company had revenue of $22.98 billion during the quarter, compared to analysts’ expectations of $23.79 billion. Archer-Daniels-Midland had a net margin of 3.71% and a return on equity of 15.25%. The business’s revenue for the quarter was down 11.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.93 EPS. Research analysts expect that Archer-Daniels-Midland Company will post 5.48 earnings per share for the current year.

Archer-Daniels-Midland declared that its board has authorized a stock buyback plan on Tuesday, March 12th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to repurchase up to 6.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Archer-Daniels-Midland Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, February 29th. Stockholders of record on Thursday, February 8th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.32%. The ex-dividend date of this dividend was Wednesday, February 7th. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.45. Archer-Daniels-Midland’s dividend payout ratio (DPR) is currently 31.25%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on ADM. BMO Capital Markets decreased their target price on Archer-Daniels-Midland from $66.00 to $60.00 and set a “market perform” rating for the company in a report on Wednesday, March 13th. Roth Mkm cut Archer-Daniels-Midland from a “buy” rating to a “neutral” rating and cut their price target for the company from $98.00 to $66.00 in a research note on Monday, January 22nd. Robert W. Baird cut Archer-Daniels-Midland from an “outperform” rating to a “neutral” rating and cut their price target for the company from $96.00 to $61.00 in a research note on Monday, January 22nd. The Goldman Sachs Group cut Archer-Daniels-Midland from a “buy” rating to a “neutral” rating and cut their price target for the company from $90.00 to $67.00 in a research note on Monday, January 22nd. Finally, Stifel Nicolaus cut Archer-Daniels-Midland from a “buy” rating to a “hold” rating and cut their price target for the company from $116.00 to $56.00 in a research note on Monday, January 22nd. One analyst has rated the stock with a sell rating and fifteen have given a hold rating to the company. According to MarketBeat, Archer-Daniels-Midland currently has an average rating of “Hold” and a consensus price target of $67.50.

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.