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 ratings firms that are presently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating and fourteen have issued a hold rating on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $60.62.

Several equities analysts have recently weighed in on ADM shares. Barclays decreased their price target 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. Stephens assumed coverage on Archer-Daniels-Midland in a report on Wednesday, December 11th. They set an “equal weight” rating and a $55.00 target price on the stock. BMO Capital Markets cut their price target on Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating for the company in a report on Wednesday, December 4th. Citigroup upped their target price on Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a report on Wednesday, December 4th. Finally, UBS Group lifted their target price on shares of Archer-Daniels-Midland from $60.00 to $64.00 and gave the stock a “neutral” rating in a research note on Monday, September 9th.

Institutional Investors Weigh In On Archer-Daniels-Midland

Institutional investors have recently added to or reduced their stakes in the business. Focused Wealth Management Inc raised its holdings in Archer-Daniels-Midland by 3.3% during the second quarter. Focused Wealth Management Inc now owns 5,338 shares of the company’s stock worth $323,000 after purchasing an additional 169 shares in the last quarter. Lake Street Advisors Group LLC raised its stake in Archer-Daniels-Midland by 4.8% during the 3rd quarter. Lake Street Advisors Group LLC now owns 4,015 shares of the company’s stock worth $240,000 after acquiring an additional 183 shares in the last quarter. OLD National Bancorp IN lifted its position in Archer-Daniels-Midland by 0.9% in the third quarter. OLD National Bancorp IN now owns 20,648 shares of the company’s stock valued at $1,234,000 after acquiring an additional 189 shares during the last quarter. UMB Bank n.a. grew its holdings in shares of Archer-Daniels-Midland by 3.4% during the third quarter. UMB Bank n.a. now owns 5,830 shares of the company’s stock worth $348,000 after purchasing an additional 194 shares during the last quarter. Finally, NorthCrest Asset Manangement LLC increased its position in shares of Archer-Daniels-Midland by 4.1% during the third quarter. NorthCrest Asset Manangement LLC now owns 5,125 shares of the company’s stock worth $306,000 after purchasing an additional 201 shares in the last quarter. Hedge funds and other institutional investors own 78.28% of the company’s stock.

Archer-Daniels-Midland Stock Performance

NYSE ADM opened at $50.41 on Thursday. The stock has a market capitalization of $24.12 billion, a price-to-earnings ratio of 14.40 and a beta of 0.72. The stock has a 50-day moving average of $53.79 and a 200 day moving average of $58.26. The company has a current ratio of 1.40, a quick ratio of 0.84 and a debt-to-equity ratio of 0.34. Archer-Daniels-Midland has a twelve month low of $48.92 and a twelve month high of $74.02.

Archer-Daniels-Midland declared that its board has approved a share repurchase plan on Wednesday, December 11th that allows the company to repurchase 100,000,000 outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Archer-Daniels-Midland Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st were issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 3.97%. The ex-dividend date of this dividend was Thursday, November 21st. Archer-Daniels-Midland’s dividend payout ratio (DPR) is 57.14%.

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.