Archer Daniels Midland (NYSE:ADM) Hits New 1-Year High - Here's Why

Key Points

• ADM shares hit a new 52-week high of $81.87, extending a recent rally and rising about 1.2% on the session. The move came as the stock traded well above both its 50-day and 200-day moving averages.
• Analyst sentiment has improved, with UBS raising its price target to $90 and several firms upgrading the stock recently. Even so, the consensus rating remains “Hold,” with an average price target of $74.50.
• ADM beat earnings expectations in its latest quarterly report, posting EPS of $0.71 versus estimates of $0.66. The company also declared a quarterly dividend of $0.52 per share, equal to a 2.6% annual yield.

Archer Daniels Midland Company (NYSE:ADM - Get Free Report) shares reached a new 52-week high on Tuesday . The stock traded as high as $81.87 and last traded at $81.4590, with a volume of 2487895 shares traded. The stock had previously closed at $79.84.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on ADM shares. UBS Group upped their price target on Archer Daniels Midland from $70.00 to $90.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Jefferies Financial Group upped their price target on Archer Daniels Midland from $65.00 to $77.00 and gave the stock a "hold" rating in a report on Monday, April 6th. Wall Street Zen upgraded Archer Daniels Midland from a "hold" rating to a "buy" rating in a report on Saturday. Zacks Research upgraded Archer Daniels Midland from a "hold" rating to a "strong-buy" rating in a report on Monday, April 6th. Finally, JPMorgan Chase & Co. upped their price target on Archer Daniels Midland from $65.00 to $74.00 and gave the stock an "underweight" rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $74.50.

Archer Daniels Midland Stock Up 1.2%

The business has a 50 day moving average of $71.18 and a 200 day moving average of $65.32. 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 firm has a market capitalization of $38.93 billion, a price-to-earnings ratio of 36.22 and a beta of 0.59.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.71 EPS for the quarter, beating analysts' consensus estimates of $0.66 by $0.05. The business had revenue of $20.49 billion during the quarter, compared to analyst estimates of $21.35 billion. Archer Daniels Midland had a return on equity of 7.37% and a net margin of 1.34%.During the same period in the prior year, the company posted $0.70 earnings per share. Archer Daniels Midland's revenue 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, equities analysts anticipate that Archer Daniels Midland Company will post 4.43 EPS 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. Shareholders of record on Wednesday, May 20th will be given a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Wednesday, May 20th. Archer Daniels Midland's dividend payout ratio is 93.27%.

Insider Buying and Selling at Archer Daniels Midland

In other Archer Daniels Midland news, SVP Jennifer L. Weber sold 25,000 shares of the company's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $67.04, for a total value of $1,676,000.00. Following the sale, the senior vice president directly owned 123,668 shares in the company, valued at $8,290,702.72. This represents a 16.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Ian R. Pinner sold 34,106 shares of the 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 sale, the senior vice president owned 90,676 shares in the company, valued at $6,486,054.28. The trade was a 27.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 109,106 shares of company stock worth $7,539,602 over the last three months. Company insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On Archer Daniels Midland

Several large investors have recently made changes to their positions in the company. Quadrant Capital Group LLC grew its position in shares of Archer Daniels Midland by 0.6% in the 4th quarter. Quadrant Capital Group LLC now owns 23,166 shares of the company's stock valued at $1,332,000 after buying an additional 146 shares during the last quarter. Atlantic Union Bankshares Corp grew its position in shares of Archer Daniels Midland by 5.1% in the 4th quarter. Atlantic Union Bankshares Corp now owns 3,127 shares of the company's stock valued at $180,000 after buying an additional 153 shares during the last quarter. Summit Financial LLC grew its position in shares of Archer Daniels Midland by 0.9% in the 4th quarter. Summit Financial LLC now owns 16,947 shares of the company's stock valued at $974,000 after buying an additional 153 shares during the last quarter. Brookstone Capital Management lifted its stake in shares of Archer Daniels Midland by 4.5% in the 4th quarter. Brookstone Capital Management now owns 3,555 shares of the company's stock valued at $204,000 after purchasing an additional 154 shares during the period. Finally, Checchi Capital Advisers LLC lifted its stake in shares of Archer Daniels Midland by 2.6% in the 4th quarter. Checchi Capital Advisers LLC now owns 6,436 shares of the company's stock valued at $370,000 after purchasing an additional 161 shares during the period. Institutional investors and hedge funds 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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