Brokerages Set Archer-Daniels-Midland Company (NYSE:ADM) Target Price at $53.63

Archer-Daniels-Midland Company (NYSE:ADM) has earned a consensus recommendation of “Reduce” from the eight brokerages that are presently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating and six have assigned a hold rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $53.63.

A number of analysts have recently weighed in on ADM shares. Morgan Stanley dropped their price target on Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating on the stock in a research report on Tuesday, February 11th. Bank of America reduced their price target on shares of Archer-Daniels-Midland from $54.00 to $48.00 and set an “underperform” rating for the company in a research note on Tuesday, February 11th. Barclays decreased their target price on Archer-Daniels-Midland from $50.00 to $48.00 and set an “underweight” rating for the company in a research note on Monday, February 24th. Stephens dropped their price target on Archer-Daniels-Midland from $55.00 to $52.00 in a report on Tuesday, February 4th. Finally, BMO Capital Markets reduced their price objective on shares of Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating for the company in a research note on Wednesday, February 5th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. AustralianSuper Pty Ltd increased its holdings in shares of Archer-Daniels-Midland by 26.4% during the 4th quarter. AustralianSuper Pty Ltd now owns 1,730,182 shares of the company’s stock valued at $87,409,000 after acquiring an additional 360,844 shares during the last quarter. Amundi lifted its position in shares of Archer-Daniels-Midland by 56.7% in the 4th quarter. Amundi now owns 2,473,393 shares of the company’s stock worth $123,340,000 after acquiring an additional 894,562 shares during the period. Hickory Point Bank & Trust acquired a new stake in Archer-Daniels-Midland during the fourth quarter worth $1,217,000. Semanteon Capital Management LP acquired a new stake in shares of Archer-Daniels-Midland during the 4th quarter valued at about $614,000. Finally, Aigen Investment Management LP grew its stake in shares of Archer-Daniels-Midland by 127.7% in the 4th quarter. Aigen Investment Management LP now owns 46,950 shares of the company’s stock valued at $2,372,000 after purchasing an additional 26,329 shares during the period. Institutional investors own 78.28% of the company’s stock.

Archer-Daniels-Midland Stock Performance

NYSE:ADM opened at $43.32 on Friday. Archer-Daniels-Midland has a 1-year low of $43.01 and a 1-year high of $66.08. The firm has a 50-day moving average of $47.51 and a two-hundred day moving average of $51.80. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.39 and a quick ratio of 0.81. The stock has a market cap of $20.78 billion, a P/E ratio of 12.00, a PEG ratio of 1.54 and a beta of 0.66.

Archer-Daniels-Midland (NYSE:ADM) last announced its quarterly earnings data on Tuesday, February 4th. The company reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.07. The company had revenue of $21.50 billion during the quarter, compared to analyst estimates of $22.77 billion. Archer-Daniels-Midland had a net margin of 2.10% and a return on equity of 10.44%. The firm’s revenue for the quarter was down 6.4% compared to the same quarter last year. During the same period last year, the business earned $1.36 EPS. On average, research analysts expect that Archer-Daniels-Midland will post 4.31 earnings per share for the current fiscal year.

Archer-Daniels-Midland announced that its board has approved a stock buyback 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. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

Archer-Daniels-Midland Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 18th were paid a $0.51 dividend. The ex-dividend date of this dividend was Tuesday, February 18th. This represents a $2.04 dividend on an annualized basis and a yield of 4.71%. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. Archer-Daniels-Midland’s payout ratio is 56.51%.

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.