Archer-Daniels-Midland Company (NYSE:ADM) Receives $53.63 Consensus Price Target from Brokerages

Shares of Archer-Daniels-Midland Company (NYSE:ADM) have earned an average rating of “Reduce” from the eight brokerages that are currently covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $53.63.

ADM has been the subject of several research analyst reports. Bank of America dropped their price objective 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. Barclays cut their price target on Archer-Daniels-Midland from $50.00 to $48.00 and set an “underweight” rating on the stock in a research note on Monday, February 24th. Stephens lowered their price objective on Archer-Daniels-Midland from $55.00 to $52.00 in a research report on Tuesday, February 4th. BMO Capital Markets cut their target price on shares of 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. Finally, Morgan Stanley lowered their price target on shares of Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating for the company in a research report on Tuesday, February 11th.

Archer-Daniels-Midland Price Performance

Archer-Daniels-Midland stock opened at $43.32 on Friday. Archer-Daniels-Midland has a 52 week low of $43.01 and a 52 week high of $66.08. The firm has a market cap of $20.78 billion, a P/E ratio of 12.00, a P/E/G ratio of 1.54 and a beta of 0.66. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.81 and a current ratio of 1.39. The business’s fifty day moving average is $47.51 and its two-hundred day moving average is $51.80.

Archer-Daniels-Midland (NYSE:ADM) last issued 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. Archer-Daniels-Midland had a net margin of 2.10% and a return on equity of 10.44%. The firm had revenue of $21.50 billion for the quarter, compared to analyst estimates of $22.77 billion. During the same quarter in the prior year, the firm earned $1.36 EPS. The company’s revenue was down 6.4% on a year-over-year basis. Equities research analysts forecast that Archer-Daniels-Midland will post 4.31 earnings per share for the current fiscal year.

Archer-Daniels-Midland Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 11th. Investors of record on Tuesday, February 18th were paid a dividend of $0.51 per share. This is a positive change from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. The ex-dividend date was Tuesday, February 18th. This represents a $2.04 annualized dividend and a yield of 4.71%. Archer-Daniels-Midland’s dividend payout ratio (DPR) is presently 56.51%.

Archer-Daniels-Midland announced that its board has authorized a stock buyback program on Wednesday, December 11th that permits the company to repurchase 100,000,000 outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Archer-Daniels-Midland

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Fairway Wealth LLC acquired a new stake in Archer-Daniels-Midland during the 4th quarter worth $25,000. Raleigh Capital Management Inc. raised its position in shares of Archer-Daniels-Midland by 179.4% during the fourth quarter. Raleigh Capital Management Inc. now owns 556 shares of the company’s stock worth $28,000 after purchasing an additional 357 shares during the period. Stonebridge Financial Group LLC bought a new position in shares of Archer-Daniels-Midland during the 4th quarter valued at about $28,000. ST Germain D J Co. Inc. grew its position 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 Archer-Daniels-Midland during the 4th quarter worth approximately $30,000. 78.28% of the stock is owned by institutional investors.

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.