Archer-Daniels-Midland (NYSE:ADM) Price Target Cut to $52.00 by Analysts at Stephens

Archer-Daniels-Midland (NYSE:ADM) had its target price decreased by Stephens from $55.00 to $52.00 in a research report released on Tuesday.

Other equities research analysts have also recently issued reports about the stock. Bank of America cut shares of Archer-Daniels-Midland from a “neutral” rating to an “underperform” rating and dropped their price target for the company from $63.00 to $54.00 in a research report on Tuesday, January 14th. BMO Capital Markets dropped their price target on shares of Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating for the company in a research report on Wednesday, December 4th. Barclays dropped their price target on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating for the company in a research report on Tuesday, January 21st. Morgan Stanley dropped their price target on shares of Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating for the company in a research report on Tuesday, November 12th. Finally, Citigroup raised their price objective on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a research note on Wednesday, December 4th. Two investment analysts have rated the stock with a sell rating and seven have issued a hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $56.56.

Archer-Daniels-Midland Price Performance

Archer-Daniels-Midland stock opened at $47.54 on Tuesday. Archer-Daniels-Midland has a 12-month low of $47.46 and a 12-month high of $66.08. The stock has a market cap of $22.75 billion, a P/E ratio of 13.58 and a beta of 0.72. The company has a 50-day moving average price of $51.36 and a 200 day moving average price of $55.81. 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 (NYSE:ADM) last released its quarterly earnings data on Tuesday, February 4th. The company reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.07. Archer-Daniels-Midland had a net margin of 2.07% and a return on equity of 10.96%. The firm had revenue of $21.50 billion during the quarter, compared to analysts’ expectations of $22.77 billion. During the same period last year, the business earned $1.36 earnings per share. Archer-Daniels-Midland’s revenue was down 6.4% compared to the same quarter last year. Sell-side analysts anticipate that Archer-Daniels-Midland will post 4.72 earnings per share for the current year.

Archer-Daniels-Midland declared that its Board of Directors has initiated a share repurchase program on Wednesday, December 11th that permits the company to repurchase 100,000,000 shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Archer-Daniels-Midland Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 18th will be paid a $0.51 dividend. This represents a $2.04 dividend on an annualized basis and a yield of 4.29%. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. Archer-Daniels-Midland’s payout ratio is currently 57.14%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ADM. Wellington Management Group LLP lifted its stake in Archer-Daniels-Midland by 41.5% in the third quarter. Wellington Management Group LLP now owns 19,430,111 shares of the company’s stock worth $1,160,755,000 after acquiring an additional 5,702,451 shares during the last quarter. Pacer Advisors Inc. lifted its stake in Archer-Daniels-Midland by 28.4% in the fourth quarter. Pacer Advisors Inc. now owns 10,382,639 shares of the company’s stock worth $524,531,000 after acquiring an additional 2,296,193 shares during the last quarter. State Street Corp lifted its stake in Archer-Daniels-Midland by 3.3% in the third quarter. State Street Corp now owns 32,045,672 shares of the company’s stock worth $1,914,408,000 after acquiring an additional 1,018,256 shares during the last quarter. FMR LLC lifted its stake in Archer-Daniels-Midland by 33.9% in the third quarter. FMR LLC now owns 3,979,867 shares of the company’s stock worth $237,757,000 after acquiring an additional 1,007,494 shares during the last quarter. Finally, Barclays PLC lifted its position in shares of Archer-Daniels-Midland by 52.0% during the 3rd quarter. Barclays PLC now owns 1,502,158 shares of the company’s stock worth $89,738,000 after buying an additional 514,005 shares during the last quarter. 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.