Archer Daniels Midland Company (NYSE:ADM) Receives Average Rating of "Hold" from Brokerages

Key Points

• Analyst consensus on ADM is “Hold,” with five hold ratings, one sell, one buy and one strong-buy rating. The average 12-month price target is $79.67, below the stock’s reported $84.66 opening price.
• ADM reported quarterly EPS of $1.84, beating estimates of $1.49, while revenue reached $22.68 billion and rose 7.2% year over year, slightly missing expectations.
• The company declared a quarterly dividend of $0.52 per share, equivalent to $2.08 annually and a 2.5% yield; institutional investors and hedge funds own 78.28% of the stock.

Archer Daniels Midland Company (NYSE:ADM - Get Free Report) has been assigned an average rating of "Hold" from the eight brokerages that are presently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $79.6667.

A number of research analysts recently weighed in on the company. UBS Group upped their price objective on Archer Daniels Midland from $90.00 to $95.00 and gave the stock a "buy" rating in a report on Monday, June 15th. Morgan Stanley raised shares of Archer Daniels Midland from an "underweight" rating to an "equal weight" rating and upped their price target for the company from $60.00 to $79.00 in a report on Wednesday, August 5th. Wall Street Zen raised Archer Daniels Midland from a "buy" rating to a "strong-buy" rating in a research note on Monday, August 31st. Weiss Ratings upgraded Archer Daniels Midland from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 5th. Finally, Zacks Research upgraded Archer Daniels Midland from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 6th.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Kelleher Financial Advisors purchased a new position in Archer Daniels Midland in the 2nd quarter valued at about $25,000. Motiv8 Investments LLC bought a new position in shares of Archer Daniels Midland during the fourth quarter worth about $26,000. Orion Capital Management LLC acquired a new position in Archer Daniels Midland in the second quarter worth about $27,000. Sankala Group LLC bought a new stake in Archer Daniels Midland in the fourth quarter valued at about $28,000. Finally, Nalls Sherbakoff Group LLC acquired a new stake in Archer Daniels Midland during the fourth quarter valued at approximately $29,000. 78.28% of the stock is owned by institutional investors and hedge funds.

Archer Daniels Midland Stock Performance

Shares of ADM stock opened at $84.66 on Friday. Archer Daniels Midland has a 52-week low of $55.58 and a 52-week high of $88.46. The company has a quick ratio of 0.86, a current ratio of 1.39 and a debt-to-equity ratio of 0.27. The stock's 50-day moving average price is $80.98 and its 200 day moving average price is $76.31. The stock has a market capitalization of $40.80 billion, a PE ratio of 23.19, a price-to-earnings-growth ratio of 2.57 and a beta of 0.62.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.49 by $0.35. The firm had revenue of $22.68 billion during the quarter, compared to the consensus estimate of $22.75 billion. Archer Daniels Midland had a return on equity of 9.21% and a net margin of 2.16%.The company's revenue for the quarter was up 7.2% on a year-over-year basis. During the same period last year, the company earned $0.93 earnings per share. Archer Daniels Midland has set its FY 2026 guidance at 5.150-5.600 EPS. As a group, equities research analysts forecast that Archer Daniels Midland will post 5.46 EPS for the current year.

Archer Daniels Midland Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Wednesday, August 19th will be given a $0.52 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $2.08 annualized dividend and a yield of 2.5%. Archer Daniels Midland's dividend payout ratio (DPR) is 56.99%.

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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