Archer-Daniels-Midland Company (NYSE:ADM) to Issue Quarterly Dividend of $0.50

Archer-Daniels-Midland Company (NYSE:ADM - Get Free Report) declared a quarterly dividend on Wednesday, May 1st, RTT News reports. Investors of record on Thursday, May 16th will be paid a dividend of 0.50 per share on Wednesday, June 5th. This represents a $2.00 annualized dividend and a yield of 3.43%.

Archer-Daniels-Midland has increased its dividend by an average of 7.7% annually over the last three years and has increased its dividend annually for the last 52 consecutive years. Archer-Daniels-Midland has a payout ratio of 34.8% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Archer-Daniels-Midland to earn $5.65 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 35.4%.

Archer-Daniels-Midland Stock Performance

Shares of ADM stock traded down $0.29 during mid-day trading on Wednesday, reaching $58.37. The stock had a trading volume of 5,208,347 shares, compared to its average volume of 5,885,433. The business's fifty day moving average is $59.32 and its 200-day moving average is $64.94. The company has a current ratio of 1.60, a quick ratio of 0.95 and a debt-to-equity ratio of 0.34. The firm has a market cap of $29.29 billion, a price-to-earnings ratio of 9.20 and a beta of 0.77. Archer-Daniels-Midland has a 1-year low of $50.72 and a 1-year high of $87.30.

Archer-Daniels-Midland (NYSE:ADM - Get Free Report) last announced its quarterly earnings data on Tuesday, April 30th. The company reported $1.46 earnings per share for the quarter, beating analysts' consensus estimates of $1.35 by $0.11. The business had revenue of $21.85 billion for the quarter, compared to analyst estimates of $22.26 billion. Archer-Daniels-Midland had a return on equity of 15.25% and a net margin of 3.71%. The company's revenue was down 9.2% on a year-over-year basis. During the same period in the prior year, the company earned $2.09 earnings per share. On average, research analysts forecast that Archer-Daniels-Midland will post 5.48 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ADM. Robert W. Baird downgraded Archer-Daniels-Midland from an "outperform" rating to a "neutral" rating and lowered their price target for the stock from $96.00 to $61.00 in a research report on Monday, January 22nd. Stifel Nicolaus downgraded Archer-Daniels-Midland from a "buy" rating to a "hold" rating and lowered their price target for the stock from $116.00 to $56.00 in a research report on Monday, January 22nd. Jefferies Financial Group lowered their price target on Archer-Daniels-Midland from $70.00 to $65.00 and set a "hold" rating on the stock in a research report on Wednesday, March 13th. UBS Group restated a "neutral" rating and issued a $51.00 target price (down previously from $104.00) on shares of Archer-Daniels-Midland in a research report on Friday, January 26th. Finally, Citigroup raised their target price on Archer-Daniels-Midland from $63.00 to $64.00 and gave the company a "neutral" rating in a research report on Wednesday, April 3rd. One equities research analyst has rated the stock with a sell rating and fifteen have assigned a hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $67.50.

Archer-Daniels-Midland announced that its Board of Directors has approved a share repurchase program on Tuesday, March 12th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 6.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

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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