Archer Daniels Midland (NYSE:ADM) Shares Down 4.8% - Should You Sell?

Key Points

• Archer Daniels Midland (NYSE:ADM) shares have dropped **4.8%**, falling to a price of **$58.66** after trading as low as **$59.47**, with trading volume significantly down by **88%** from average levels.
• Several analysts have revised their price targets with Barclays upgrading its target to **$61.00**, while UBS raised it to **$70.00**, though the consensus rating for the stock remains a **"Hold"** with an average target of **$55.50**.
• The company reported **$0.93 EPS** for the last quarter, beating estimates, but revenue decreased **4.9%** year-over-year, leading to a cautious fiscal outlook with expectations of **4.31 EPS** for the current fiscal year.

Archer Daniels Midland Company (NYSE:ADM - Get Free Report) shares dropped 4.8% during mid-day trading on Monday . The stock traded as low as $59.47 and last traded at $58.66. Approximately 485,225 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 3,929,429 shares. The stock had previously closed at $61.65.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ADM. Barclays upgraded Archer Daniels Midland from an "underweight" rating to an "equal weight" rating and upped their price objective for the stock from $50.00 to $61.00 in a research note on Wednesday, August 6th. UBS Group reaffirmed a "buy" rating and issued a $70.00 price objective (up from $60.00) on shares of Archer Daniels Midland in a report on Monday, August 11th. JPMorgan Chase & Co. began coverage on Archer Daniels Midland in a research note on Wednesday, August 20th. They issued a "neutral" rating and a $61.00 price objective on the stock. Morgan Stanley increased their target price on Archer Daniels Midland from $47.00 to $57.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 12th. Finally, Wall Street Zen upgraded Archer Daniels Midland from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $55.50.

Archer Daniels Midland Trading Down 3.0%

The company has a current ratio of 1.42, a quick ratio of 0.90 and a debt-to-equity ratio of 0.34. The company has a market cap of $28.72 billion, a PE ratio of 26.35, a PEG ratio of 3.28 and a beta of 0.69. The stock has a 50 day moving average price of $58.91 and a 200 day moving average price of $52.45.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.88 by $0.05. Archer Daniels Midland had a return on equity of 8.43% and a net margin of 1.33%.The firm had revenue of $21.17 billion for the quarter, compared to the consensus estimate of $21.56 billion. During the same period last year, the business posted $1.03 EPS. The company's revenue for the quarter was down 4.9% on a year-over-year basis. Archer Daniels Midland has set its FY 2025 guidance at 4.000-4.000 EPS. Sell-side analysts predict that Archer Daniels Midland Company will post 4.31 EPS for the current fiscal year.

Archer Daniels Midland Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Wednesday, August 20th were paid a $0.51 dividend. This represents a $2.04 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend was Wednesday, August 20th. Archer Daniels Midland's dividend payout ratio (DPR) is 89.87%.

Institutional Investors Weigh In On Archer Daniels Midland

Institutional investors and hedge funds have recently made changes to their positions in the business. Beacon Financial Advisory LLC grew its position in shares of Archer Daniels Midland by 1.0% in the second quarter. Beacon Financial Advisory LLC now owns 18,505 shares of the company's stock valued at $977,000 after purchasing an additional 185 shares during the last quarter. Rothschild Investment LLC lifted its position in Archer Daniels Midland by 9.7% in the 2nd quarter. Rothschild Investment LLC now owns 2,232 shares of the company's stock valued at $118,000 after purchasing an additional 198 shares during the last quarter. Argyle Capital Management LLC raised its position in shares of Archer Daniels Midland by 1.0% during the 2nd quarter. Argyle Capital Management LLC now owns 20,575 shares of the company's stock worth $1,086,000 after buying an additional 200 shares in the last quarter. Westpac Banking Corp raised its holdings in shares of Archer Daniels Midland by 38.0% in the 2nd quarter. Westpac Banking Corp now owns 733 shares of the company's stock worth $39,000 after purchasing an additional 202 shares in the last quarter. Finally, Foundations Investment Advisors LLC increased its position in shares of Archer Daniels Midland by 5.4% in the first quarter. Foundations Investment Advisors LLC now owns 4,310 shares of the company's stock worth $207,000 after acquiring an additional 220 shares in the last quarter. 78.28% of the stock is owned by hedge funds and other institutional investors.

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.

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