Archer-Daniels-Midland Company (NYSE:ADM) Receives $56.33 Consensus Target Price from Analysts

Archer-Daniels-Midland Company (NYSE:ADM) has earned an average rating of “Reduce” from the nine analysts that are presently covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $55.11.

Several analysts have recently issued reports on the company. 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 report on Wednesday, February 5th. Barclays decreased their price target on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating on the stock in a research note on Tuesday, January 21st. Stephens reduced their price objective on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a research note on Tuesday, February 4th. Morgan Stanley reduced 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 note on Tuesday. Finally, Bank of America dropped 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.

Archer-Daniels-Midland Price Performance

Shares of NYSE:ADM opened at $46.47 on Friday. Archer-Daniels-Midland has a 12 month low of $45.01 and a 12 month high of $66.08. The firm has a market capitalization of $22.24 billion, a price-to-earnings ratio of 12.87 and a beta of 0.72. The business’s 50 day simple moving average is $50.56 and its 200-day simple moving average is $55.21. The company has a debt-to-equity ratio of 0.37, a current ratio of 5.44 and a quick ratio of 0.84.

Archer-Daniels-Midland (NYSE:ADM) last released its quarterly earnings results 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 return on equity of 10.44% and a net margin of 2.10%. The business had revenue of $21.50 billion during the quarter, compared to the consensus estimate of $22.77 billion. During the same quarter in the previous year, the company posted $1.36 EPS. The business’s revenue was down 6.4% on a year-over-year basis. As a group, equities analysts forecast that Archer-Daniels-Midland will post 4.53 earnings per share for the current fiscal year.

Archer-Daniels-Midland declared that its Board of Directors has authorized a share repurchase plan on Wednesday, December 11th that allows the company to buyback 100,000,000 outstanding shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Archer-Daniels-Midland Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 18th will be given a dividend of $0.51 per share. This represents a $2.04 dividend on an annualized basis and a yield of 4.39%. The ex-dividend date of this dividend is Tuesday, February 18th. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. Archer-Daniels-Midland’s dividend payout ratio is 56.51%.

Institutional Investors Weigh In On Archer-Daniels-Midland

Several large investors have recently made changes to their positions in ADM. Vanguard Group Inc. boosted its position in Archer-Daniels-Midland by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 62,359,269 shares of the company’s stock worth $3,150,390,000 after purchasing an additional 706,567 shares during the period. State Street Corp boosted its position in shares of 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 buying an additional 1,018,256 shares during the period. Wellington Management Group LLP grew its stake in shares of 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 valued at $1,160,755,000 after buying an additional 5,702,451 shares in the last quarter. Pacer Advisors Inc. lifted its position in Archer-Daniels-Midland by 28.4% during the 4th 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 in the last quarter. Finally, FMR LLC boosted its holdings in Archer-Daniels-Midland by 33.9% in the 3rd 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 period. Institutional investors and hedge funds 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.