Archer-Daniels-Midland (NYSE:ADM) Reaches New 52-Week Low – Here’s Why

Shares of Archer-Daniels-Midland Company (NYSE:ADM) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $44.96 and last traded at $45.04, with a volume of 341289 shares. The stock had previously closed at $45.22.

Analyst Upgrades and Downgrades

ADM has been the subject of several research analyst reports. Stephens dropped their price target on Archer-Daniels-Midland from $55.00 to $52.00 in a research note on Tuesday, February 4th. Morgan Stanley lowered their price target on Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating for the company in a research report on Tuesday. BMO Capital Markets reduced their target price on Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating on the stock in a report on Wednesday, February 5th. Bank of America reduced their target price on Archer-Daniels-Midland from $54.00 to $48.00 and set an “underperform” rating on the stock in a report on Tuesday. Finally, Citigroup upped their target price on Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. Two research analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company. According to MarketBeat.com, Archer-Daniels-Midland has a consensus rating of “Hold” and a consensus target price of $55.11.

Archer-Daniels-Midland Price Performance

The firm has a market capitalization of $22.07 billion, a P/E ratio of 12.77 and a beta of 0.72. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.84 and a current ratio of 5.44. The firm has a 50-day moving average of $50.16 and a 200-day moving average of $54.95.

Archer-Daniels-Midland (NYSE:ADM) last released its quarterly earnings data on Tuesday, February 4th. The company reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.07. The business had revenue of $21.50 billion for the quarter, compared to analysts’ expectations of $22.77 billion. Archer-Daniels-Midland had a return on equity of 10.44% and a net margin of 2.10%. The firm’s quarterly revenue was down 6.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.36 EPS. As a group, analysts predict that Archer-Daniels-Midland Company will post 4.53 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. Stockholders of record on Tuesday, February 18th will be issued a dividend of $0.51 per share. This represents a $2.04 annualized dividend and a dividend yield of 4.42%. This is a boost from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. The ex-dividend date is Tuesday, February 18th. Archer-Daniels-Midland’s dividend payout ratio is presently 55.40%.

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

Hedge Funds Weigh In On Archer-Daniels-Midland

A number of institutional investors have recently bought and sold shares of the stock. DoubleLine ETF Adviser LP raised its holdings in Archer-Daniels-Midland by 2.3% in the 4th quarter. DoubleLine ETF Adviser LP now owns 27,149 shares of the company’s stock worth $1,372,000 after purchasing an additional 619 shares during the period. Mercer Global Advisors Inc. ADV bought a new position in Archer-Daniels-Midland in the 4th quarter worth $2,564,000. Parvin Asset Management LLC bought a new position in Archer-Daniels-Midland in the 4th quarter worth $58,000. Voleon Capital Management LP bought a new position in Archer-Daniels-Midland in the 4th quarter worth $3,900,000. Finally, Northern Trust Corp raised its holdings in Archer-Daniels-Midland by 2.6% in the 4th quarter. Northern Trust Corp now owns 11,035,011 shares of the company’s stock worth $557,489,000 after purchasing an additional 275,792 shares during the period. 78.28% of the stock is owned by 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.