Archer Daniels Midland Company (NYSE:ADM) Given Average Rating of "Reduce" by Analysts

Key Points

• Analysts have a consensus rating of "Reduce" (3 sell, 5 hold, 1 buy) with an average 1‑year target of $58, well below ADM's recent ~\$72 market price, implying limited upside per sell‑side views.
• ADM beat Q results on EPS ($0.87 vs $0.80) but revenue fell 13.7% and missed estimates; management set FY2026 guidance of 3.600–4.250 EPS, raised the quarterly dividend to $0.52 (2.9% yield) while the payout ratio is high (~94%), and insider activity included a director purchase and a SVP sale.

Shares of Archer Daniels Midland Company (NYSE:ADM - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the nine ratings firms that are covering the firm, MarketBeat reports. Three research analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $58.00.

A number of equities research analysts recently commented on the company. Zacks Research raised Archer Daniels Midland from a "strong sell" rating to a "hold" rating in a research note on Friday, January 23rd. Morgan Stanley downgraded shares of Archer Daniels Midland from an "equal weight" rating to an "underweight" rating and cut their price target for the company from $57.00 to $50.00 in a research report on Tuesday, December 16th. BMO Capital Markets reissued a "market perform" rating and set a $63.00 price objective on shares of Archer Daniels Midland in a research note on Wednesday, February 4th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Archer Daniels Midland in a research note on Wednesday, January 21st. Finally, Barclays lifted their target price on Archer Daniels Midland from $61.00 to $68.00 and gave the stock an "equal weight" rating in a report on Thursday, February 19th.

Insider Buying and Selling

In related news, Director David R. Mcatee II bought 7,500 shares of the company's stock in a transaction on Thursday, February 5th. The shares were purchased at an average cost of $64.90 per share, for a total transaction of $486,750.00. Following the acquisition, the director owned 7,500 shares of the company's stock, valued at approximately $486,750. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Gregory A. Morris sold 50,000 shares of the company's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $68.48, for a total transaction of $3,424,000.00. Following the completion of the transaction, the senior vice president directly owned 300,122 shares of the company's stock, valued at approximately $20,552,354.56. The trade was a 14.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Woodline Partners LP boosted its position in Archer Daniels Midland by 40.8% during the first quarter. Woodline Partners LP now owns 40,429 shares of the company's stock worth $1,941,000 after purchasing an additional 11,715 shares during the period. Savant Capital LLC increased its position in Archer Daniels Midland by 19.4% in the 2nd quarter. Savant Capital LLC now owns 15,210 shares of the company's stock valued at $803,000 after acquiring an additional 2,475 shares during the period. Midwest Trust Co acquired a new position in Archer Daniels Midland in the second quarter valued at $204,000. Allworth Financial LP grew its holdings in Archer Daniels Midland by 132.3% in the second quarter. Allworth Financial LP now owns 13,294 shares of the company's stock worth $702,000 after purchasing an additional 7,571 shares during the period. Finally, Vise Technologies Inc. bought a new stake in Archer Daniels Midland during the 2nd quarter valued at $334,000. Institutional investors own 78.28% of the company's stock.

Archer Daniels Midland Price Performance

Shares of ADM stock opened at $71.93 on Friday. The firm has a market cap of $34.61 billion, a price-to-earnings ratio of 32.40, a PEG ratio of 0.97 and a beta of 0.68. Archer Daniels Midland has a 12 month low of $40.98 and a 12 month high of $73.72. The company has a quick ratio of 0.83, a current ratio of 1.37 and a debt-to-equity ratio of 0.29. The stock has a 50-day moving average price of $66.91 and a 200 day moving average price of $62.54.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last released its earnings results on Tuesday, February 3rd. The company reported $0.87 EPS for the quarter, topping analysts' consensus estimates of $0.80 by $0.07. The firm had revenue of $18.56 billion during the quarter, compared to analyst estimates of $21.03 billion. Archer Daniels Midland had a net margin of 1.34% and a return on equity of 7.39%. The business's quarterly revenue was down 13.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.14 EPS. Archer Daniels Midland has set its FY 2026 guidance at 3.600-4.250 EPS. Research analysts expect that Archer Daniels Midland will post 4.31 EPS for the current year.

Archer Daniels Midland Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 17th were given a $0.52 dividend. The ex-dividend date was Tuesday, February 17th. This represents a $2.08 annualized dividend and a dividend yield of 2.9%. This is a boost from Archer Daniels Midland's previous quarterly dividend of $0.51. Archer Daniels Midland's payout ratio is presently 93.69%.

Archer Daniels Midland News Summary

Here are the key news stories impacting Archer Daniels Midland this week:

• Positive Sentiment: Analyst research (Morningstar) sees higher near-term profits for ADM tied to volatility in commodity markets from the Middle East conflict, which can boost trading and merchandising margins. Read More.
• Positive Sentiment: ADM announced a $500K partnership with American Farmland Trust under its Farm Forward initiative — a positive ESG/community move that supports farmer relationships and long-term supply resilience. Read More.
• Positive Sentiment: The company is pursuing $500–$750M of cost reductions while investing in nutrition, biosolutions and alternative proteins — a mix intended to protect margins and support long-term growth. Read More.
• Neutral Sentiment: Recent price momentum — ADM has surged ~59% over the past year and recently hit a 52-week high — prompting renewed valuation checks by market commentators. Momentum supports sentiment but raises valuation scrutiny. Read More. · Read More.
• Neutral Sentiment: Institutional activity shows some buying alongside rebalancing; that supports liquidity but is mixed in magnitude and not a clear directional catalyst. Read More.
• Negative Sentiment: Insider selling: SVP Gregory Morris sold 50,000 shares (~$3.4M) recently. Large insider sales can unsettle investors even when not unusual. Read More.
• Negative Sentiment: Analyst caution: several sell/hold ratings and a consensus price target well below the current price imply limited upside in some sell‑side views, which can cap gains if earnings or outlook disappoint. Read More.
• Negative Sentiment: Dividend payout ratio is high (~94%) despite a small raise; that raises questions about payout sustainability if earnings slip. Read More.

About Archer Daniels Midland

Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.

ADM's business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.

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