Archer-Daniels-Midland (NYSE:ADM) Sets New 52-Week Low – Here’s Why

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

Wall Street Analyst Weigh In

A number of brokerages have commented on ADM. Barclays cut their price objective on shares of Archer-Daniels-Midland from $50.00 to $48.00 and set an “underweight” rating on the stock in a report on Monday, February 24th. BMO Capital Markets lowered their price objective on 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. Morgan Stanley cut their target price 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 decreased 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 report on Tuesday, February 11th. Finally, Stephens cut their price target on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a report on Tuesday, February 4th. Two equities research analysts have rated the stock with a sell rating and six have issued a hold rating to the company’s stock. According to data from MarketBeat, Archer-Daniels-Midland has a consensus rating of “Hold” and an average target price of $53.63.

Archer-Daniels-Midland Stock Performance

The firm has a market capitalization of $20.78 billion, a price-to-earnings ratio of 12.00, a price-to-earnings-growth ratio of 1.54 and a beta of 0.66. The company has a 50-day moving average of $47.51 and a 200-day moving average of $51.74. The company has a current ratio of 1.39, a quick ratio of 0.81 and a debt-to-equity ratio of 0.34.

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

Archer-Daniels-Midland Increases Dividend

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

Archer-Daniels-Midland declared that its Board of Directors has approved a share buyback program on Wednesday, December 11th that authorizes the company to buyback 100,000,000 shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Archer-Daniels-Midland

Large investors have recently added to or reduced their stakes in the stock. Exeter Financial LLC increased its holdings in shares of Archer-Daniels-Midland by 27.4% during the first quarter. Exeter Financial LLC now owns 25,595 shares of the company’s stock valued at $1,229,000 after purchasing an additional 5,501 shares during the period. Sage Capital Advisors llc increased its stake in Archer-Daniels-Midland by 0.3% during the 1st quarter. Sage Capital Advisors llc now owns 115,443 shares of the company’s stock valued at $5,542,000 after buying an additional 375 shares during the period. Moody National Bank Trust Division bought a new stake in shares of Archer-Daniels-Midland during the 1st quarter worth about $221,000. MassMutual Private Wealth & Trust FSB lifted its stake in shares of Archer-Daniels-Midland by 22.5% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,958 shares of the company’s stock worth $94,000 after acquiring an additional 359 shares during the period. Finally, Chancellor Financial Group WB LP bought a new position in shares of Archer-Daniels-Midland in the fourth quarter valued at approximately $678,000. 78.28% of the stock is owned by institutional investors and hedge funds.

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.