Archer-Daniels-Midland (NYSE:ADM) Hits New 1-Year Low – What’s Next?

Archer-Daniels-Midland Company (NYSE:ADM) reached a new 52-week low during trading on Friday . The stock traded as low as $44.06 and last traded at $44.32, with a volume of 1373259 shares trading hands. The stock had previously closed at $47.57.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on ADM. Stephens cut their target price on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a research note on Tuesday, February 4th. BMO Capital Markets reduced their price objective on Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 5th. Bank of America lowered their target price on 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 reduced their price target on Archer-Daniels-Midland from $50.00 to $48.00 and set an “underweight” rating on the stock in a research report on Monday, February 24th. Finally, Morgan Stanley cut their target price on shares of Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Tuesday, February 11th. Two analysts have rated the stock with a sell rating and six have assigned a hold rating to the stock. Based on data from MarketBeat, Archer-Daniels-Midland currently has an average rating of “Hold” and a consensus price target of $53.63.

Archer-Daniels-Midland Stock Performance

The firm has a market capitalization of $21.14 billion, a PE ratio of 12.21, a price-to-earnings-growth ratio of 1.54 and a beta of 0.66. 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 50-day moving average price of $47.65 and a 200-day moving average price of $51.91.

Archer-Daniels-Midland (NYSE:ADM) last released 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. The firm had revenue of $21.50 billion during the quarter, compared to the consensus estimate 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 was down 6.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.36 earnings per share. On average, research analysts expect that Archer-Daniels-Midland Company will post 4.31 EPS for the current fiscal year.

Archer-Daniels-Midland Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 18th were issued a $0.51 dividend. The ex-dividend date was Tuesday, February 18th. This is a boost from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. This represents a $2.04 annualized dividend and a dividend yield of 4.63%. Archer-Daniels-Midland’s dividend payout ratio (DPR) is 56.51%.

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

Institutional Trading of Archer-Daniels-Midland

A number of hedge funds have recently modified their holdings of ADM. Fairway Wealth LLC acquired a new position in shares of Archer-Daniels-Midland during the 4th quarter worth $25,000. Raleigh Capital Management Inc. grew its holdings in shares of Archer-Daniels-Midland by 179.4% during the 4th quarter. Raleigh Capital Management Inc. now owns 556 shares of the company’s stock worth $28,000 after purchasing an additional 357 shares in the last quarter. Stonebridge Financial Group LLC bought a new stake in Archer-Daniels-Midland in the 4th quarter valued at $28,000. ST Germain D J Co. Inc. grew its stake in shares of Archer-Daniels-Midland by 724.6% in the 4th quarter. ST Germain D J Co. Inc. now owns 569 shares of the company’s stock valued at $29,000 after purchasing an additional 500 shares during the period. Finally, Crews Bank & Trust bought a new stake in shares of Archer-Daniels-Midland in the 4th quarter worth about $30,000. Hedge funds and other institutional investors own 78.28% of the company’s stock.

Archer-Daniels-Midland Company Profile

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.