Archer Daniels Midland Company (NYSE:ADM) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts remain cautious on ADM: The stock has a consensus rating of “Hold” from eight covering firms, with an average 1-year price target of $74.50. Ratings are mixed, including two sells, four holds, one buy, and one strong buy.
• ADM beat earnings but missed on revenue: In its latest quarterly report, ADM posted $0.71 EPS, topping estimates of $0.66, while revenue came in at $20.49 billion, below the $21.35 billion consensus. The company also reiterated FY 2026 EPS guidance of 4.15 to 4.70.
• The company continues to pay a sizable dividend: ADM declared a quarterly dividend of $0.52 per share, equal to an annualized $2.08 and a yield of about 2.6%. The payout ratio is high at 93.27%.

Shares of Archer Daniels Midland Company (NYSE:ADM - Get Free Report) have been given a consensus recommendation of "Hold" by the eight research firms that are presently covering the company, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, four have given a hold recommendation, one has given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $74.50.

A number of analysts have issued reports on the company. Wall Street Zen raised Archer Daniels Midland from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Jefferies Financial Group raised their target price on Archer Daniels Midland from $65.00 to $77.00 and gave the stock a "hold" rating in a research report on Monday, April 6th. JPMorgan Chase & Co. lifted their price target on Archer Daniels Midland from $65.00 to $74.00 and gave the company an "underweight" rating in a research report on Wednesday, May 6th. Barclays lifted their price target on Archer Daniels Midland from $77.00 to $85.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $63.00 price target on shares of Archer Daniels Midland in a research report on Wednesday, February 4th.

Archer Daniels Midland Stock Performance

NYSE:ADM opened at $79.61 on Thursday. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.31 and a quick ratio of 0.80. The business has a fifty day simple moving average of $73.61 and a two-hundred day simple moving average of $66.92. Archer Daniels Midland has a 1 year low of $46.81 and a 1 year high of $83.10. The company has a market capitalization of $38.37 billion, a P/E ratio of 35.70 and a beta of 0.59.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $0.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.66 by $0.05. Archer Daniels Midland had a return on equity of 7.37% and a net margin of 1.34%.The business had revenue of $20.49 billion during the quarter, compared to the consensus estimate of $21.35 billion. During the same period last year, the business posted $0.70 earnings per share. The business's revenue for the quarter was up 1.6% on a year-over-year basis. Archer Daniels Midland has set its FY 2026 guidance at 4.150-4.70 EPS. On average, analysts expect that Archer Daniels Midland will post 4.43 earnings per share for the current year.

Archer Daniels Midland Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th will be given a $0.52 dividend. The ex-dividend date is Wednesday, May 20th. This represents a $2.08 annualized dividend and a dividend yield of 2.6%. Archer Daniels Midland's payout ratio is 93.27%.

Insider Buying and Selling at Archer Daniels Midland

In other news, SVP Ian R. Pinner sold 34,106 shares of Archer Daniels Midland stock in a transaction on Friday, March 13th. The stock was sold at an average price of $71.53, for a total value of $2,439,602.18. Following the completion of the transaction, the senior vice president directly owned 90,676 shares in the company, valued at approximately $6,486,054.28. The trade was a 27.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Gregory A. Morris sold 50,000 shares of Archer Daniels Midland stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $68.48, for a total value of $3,424,000.00. Following the completion of the transaction, the senior vice president owned 300,122 shares of the company's stock, valued at approximately $20,552,354.56. This trade represents a 14.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Archer Daniels Midland

Several large investors have recently added to or reduced their stakes in ADM. Woodline Partners LP boosted its stake in Archer Daniels Midland by 40.8% during the first quarter. Woodline Partners LP now owns 40,429 shares of the company's stock valued at $1,941,000 after buying an additional 11,715 shares during the period. Daiwa Securities Group Inc. boosted its stake in Archer Daniels Midland by 5.3% during the second quarter. Daiwa Securities Group Inc. now owns 83,983 shares of the company's stock valued at $4,433,000 after buying an additional 4,224 shares during the period. Sei Investments Co. boosted its stake in Archer Daniels Midland by 40.0% during the second quarter. Sei Investments Co. now owns 191,633 shares of the company's stock valued at $10,116,000 after buying an additional 54,746 shares during the period. Glenview Trust co bought a new stake in Archer Daniels Midland during the second quarter valued at $203,000. Finally, Treasurer of the State of North Carolina boosted its stake in Archer Daniels Midland by 2.3% during the second quarter. Treasurer of the State of North Carolina now owns 223,280 shares of the company's stock valued at $11,785,000 after buying an additional 5,051 shares during the period. Institutional investors own 78.28% of the company's stock.

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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