Archer-Daniels-Midland (NYSE:ADM) Sets New 52-Week Low – Should You Sell?

Archer-Daniels-Midland Company (NYSE:ADM)’s stock price hit a new 52-week low on Wednesday . The stock traded as low as $48.77 and last traded at $48.78, with a volume of 177970 shares trading hands. The stock had previously closed at $49.43.

Analyst Ratings Changes

ADM has been the subject of several recent analyst reports. Morgan Stanley reduced their target price on shares of Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 12th. Stephens assumed coverage on shares of Archer-Daniels-Midland in a research report on Wednesday, December 11th. They issued an “equal weight” rating and a $55.00 price objective for the company. BMO Capital Markets dropped their target price on shares of Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating on the stock in a research report on Wednesday, December 4th. Citigroup increased their price target on Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a research report on Wednesday, December 4th. Finally, Barclays cut their price objective on Archer-Daniels-Midland from $60.00 to $56.00 and set an “underweight” rating on the stock in a research report on Wednesday, December 4th. One investment analyst has rated the stock with a sell rating and fifteen have given a hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $60.62.

Archer-Daniels-Midland Stock Up 2.3 %

The company’s 50 day simple moving average is $51.97 and its 200-day simple moving average is $57.27. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 1.40. The firm has a market capitalization of $24.40 billion, a PE ratio of 14.57 and a beta of 0.72.

Archer-Daniels-Midland Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Thursday, November 21st were paid a $0.50 dividend. The ex-dividend date of this dividend was Thursday, November 21st. This represents a $2.00 dividend on an annualized basis and a yield of 3.92%. Archer-Daniels-Midland’s dividend payout ratio is presently 57.14%.

Archer-Daniels-Midland declared that its Board of Directors has approved 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 repurchase shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Archer-Daniels-Midland

Large investors have recently added to or reduced their stakes in the business. Harbor Capital Advisors Inc. bought a new position in Archer-Daniels-Midland during the 3rd quarter worth approximately $25,000. Ashton Thomas Securities LLC purchased a new stake in shares of Archer-Daniels-Midland during the third quarter valued at approximately $26,000. Altshuler Shaham Ltd bought a new position in shares of Archer-Daniels-Midland in the second quarter worth approximately $28,000. Peterson Financial Group Inc. bought a new stake in Archer-Daniels-Midland during the 3rd quarter valued at $28,000. Finally, ST Germain D J Co. Inc. boosted its position in Archer-Daniels-Midland by 724.6% during the 4th quarter. ST Germain D J Co. Inc. now owns 569 shares of the company’s stock valued at $29,000 after buying an additional 500 shares during the period. Hedge funds and other institutional investors own 78.28% of the company’s stock.

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.