Archer Daniels Midland (NYSE:ADM) Sets New 1-Year High - Time to Buy?

Key Points

• ADM shares hit a new 52-week high on Thursday, trading as high as $87.67 before closing near $87.45, up about 1.4% on the day. The move comes as the stock has climbed well above its 50-day and 200-day moving averages.
• Despite the rally, Wall Street remains cautious overall: the stock’s consensus rating is “Reduce,” with an average target price of $75.67. Analyst views are mixed, ranging from Buy to Sell, though several firms recently raised price targets.
• ADM posted a quarterly earnings beat, reporting $0.71 EPS versus $0.66 expected, and it recently paid a quarterly dividend of $0.52 per share. However, revenue came in below estimates and the dividend payout ratio is relatively high at 93.27%.

Archer Daniels Midland Company (NYSE:ADM - Get Free Report)'s share price reached a new 52-week high on Thursday . The company traded as high as $87.67 and last traded at $87.4450, with a volume of 3699004 shares changing hands. The stock had previously closed at $86.20.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on ADM shares. Morgan Stanley increased their target price on Archer Daniels Midland from $58.00 to $60.00 and gave the stock an "underweight" rating in a research report on Monday. Weiss Ratings restated a "hold (c)" rating on shares of Archer Daniels Midland in a research note on Friday, July 17th. Zacks Research lowered shares of Archer Daniels Midland from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. UBS Group upped their price objective on shares of Archer Daniels Midland from $90.00 to $95.00 and gave the stock a "buy" rating in a research report on Monday, June 15th. Finally, Barclays increased their target price on Archer Daniels Midland from $77.00 to $85.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $75.67.

Archer Daniels Midland Trading Up 1.4%

The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.80 and a current ratio of 1.31. The stock has a market capitalization of $42.14 billion, a P/E ratio of 39.21 and a beta of 0.62. The stock has a 50-day moving average price of $79.64 and a two-hundred day moving average price of $72.88.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last released 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. Archer Daniels Midland had a return on equity of 7.37% and a net margin of 1.34%.The company had revenue of $20.49 billion during the quarter, compared to analysts' expectations of $21.35 billion. During the same quarter last year, the business posted $0.70 EPS. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. Archer Daniels Midland has set its FY 2026 guidance at 4.150-4.70 EPS. On average, research analysts forecast that Archer Daniels Midland Company will post 4.76 EPS for the current fiscal year.

Archer Daniels Midland Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 20th were given a dividend of $0.52 per share. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $2.08 annualized dividend and a dividend yield of 2.4%. Archer Daniels Midland's dividend payout ratio (DPR) is 93.27%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Toth Financial Advisory Corp purchased a new stake in shares of Archer Daniels Midland in the 4th quarter worth $25,000. Motiv8 Investments LLC purchased a new position in Archer Daniels Midland during the fourth quarter valued at approximately $26,000. Sankala Group LLC bought a new position in Archer Daniels Midland in the 4th quarter worth $28,000. Nalls Sherbakoff Group LLC bought a new position in shares of Archer Daniels Midland in the fourth quarter worth about $29,000. Finally, Global Trust Asset Management LLC bought a new position in Archer Daniels Midland in the 1st quarter worth approximately $29,000. Institutional investors own 78.28% of the company's stock.

Archer Daniels Midland Company Profile

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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