Archer Daniels Midland Company (NYSE:ADM) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Archer Daniels Midland Company (NYSE:ADM) has received an average rating of "Reduce" from seven research firms, with two sell ratings, four hold ratings, and one buy rating.
• The company reported $0.70 EPS for the last quarter, slightly beating expectations, but had a revenue decline of 7.7% year-over-year.
• Archer Daniels Midland recently declared a quarterly dividend of $0.51 per share, resulting in an annualized yield of 3.8% and a payout ratio of 72.86%.

Shares of Archer Daniels Midland Company (NYSE:ADM - Get Free Report) have been given an average rating of "Reduce" by the seven research firms that are currently covering the firm, MarketBeat reports. Two analysts have rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $50.29.

Several equities analysts recently commented on the stock. Bank of America cut shares of Archer Daniels Midland from a "neutral" rating to an "underperform" rating and reduced their price objective for the company from $47.00 to $45.00 in a research note on Thursday, May 8th. Citigroup reduced their price objective on shares of Archer Daniels Midland from $51.00 to $49.00 and set a "neutral" rating for the company in a research note on Tuesday, April 15th. Barclays boosted their price target on shares of Archer Daniels Midland from $48.00 to $50.00 and gave the stock an "underweight" rating in a research note on Wednesday, July 2nd. Finally, UBS Group raised shares of Archer Daniels Midland from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $55.00 to $60.00 in a research note on Monday, May 19th.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. S.A. Mason LLC bought a new stake in Archer Daniels Midland during the 1st quarter valued at about $25,000. Headlands Technologies LLC purchased a new position in Archer Daniels Midland during the first quarter valued at approximately $25,000. SOA Wealth Advisors LLC. bought a new stake in shares of Archer Daniels Midland during the second quarter valued at approximately $25,000. Trust Co. of Toledo NA OH bought a new stake in shares of Archer Daniels Midland during the second quarter valued at approximately $32,000. Finally, ORG Partners LLC raised its position in shares of Archer Daniels Midland by 297.2% during the first quarter. ORG Partners LLC now owns 699 shares of the company's stock valued at $34,000 after buying an additional 523 shares during the last quarter. 78.28% of the stock is currently owned by institutional investors.

Archer Daniels Midland Stock Down 0.6%

Shares of ADM traded down $0.31 during trading hours on Friday, reaching $53.87. 2,583,142 shares of the stock traded hands, compared to its average volume of 2,776,028. The company has a current ratio of 1.38, a quick ratio of 0.81 and a debt-to-equity ratio of 0.34. The stock has a fifty day simple moving average of $52.49 and a 200 day simple moving average of $49.39. Archer Daniels Midland has a 52 week low of $40.98 and a 52 week high of $62.61. The company has a market cap of $25.88 billion, a price-to-earnings ratio of 19.24, a PEG ratio of 3.02 and a beta of 0.68.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last posted its quarterly earnings data on Tuesday, May 6th. The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.69 by $0.01. Archer Daniels Midland had a net margin of 1.63% and a return on equity of 8.71%. The business had revenue of $20.18 billion during the quarter, compared to the consensus estimate of $22.05 billion. During the same quarter last year, the company posted $1.46 earnings per share. The firm's quarterly revenue was down 7.7% compared to the same quarter last year. On average, equities analysts forecast that Archer Daniels Midland will post 4.31 EPS for the current year.

Archer Daniels Midland Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 11th. Stockholders of record on Wednesday, May 21st were paid a dividend of $0.51 per share. The ex-dividend date of this dividend was Wednesday, May 21st. This represents a $2.04 annualized dividend and a dividend yield of 3.8%. Archer Daniels Midland's payout ratio is 72.86%.

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.