Archer Daniels Midland (NYSE:ADM) Sets New 12-Month High - Should You Buy?

Key Points

• ADM shares reached a new 52-week high of $88.75, trading around $87.86 and up 0.5%. Despite the rally, analysts’ consensus rating remains “Hold,” with a $79.67 average price target.
• The company reported strong quarterly results, with EPS of $1.84 versus the $1.49 consensus and revenue of $22.68 billion, up 7.2% year over year but slightly below estimates.
• ADM declared a quarterly dividend of $0.52, equivalent to $2.08 annually and a 2.4% yield. Institutional investors own approximately 78.28% of the company.

Archer Daniels Midland Company (NYSE:ADM - Get Free Report) shares hit a new 52-week high during trading on Thursday . The stock traded as high as $88.75 and last traded at $87.8630, with a volume of 243150 shares traded. The stock had previously closed at $86.55.

Wall Street Analyst Weigh In

ADM has been the topic of several recent research reports. Barclays lifted their price target on shares of Archer Daniels Midland from $85.00 to $90.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 5th. Weiss Ratings upgraded shares of Archer Daniels Midland from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 5th. UBS Group raised their price objective on Archer Daniels Midland from $90.00 to $95.00 and gave the company a "buy" rating in a report on Monday, June 15th. Zacks Research raised Archer Daniels Midland from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 6th. Finally, Morgan Stanley upgraded Archer Daniels Midland from an "underweight" rating to an "equal weight" rating and upped their target price for the stock from $60.00 to $79.00 in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Archer Daniels Midland presently has a consensus rating of "Hold" and a consensus price target of $79.67.

Archer Daniels Midland Trading Up 0.5%

The stock has a market cap of $41.94 billion, a price-to-earnings ratio of 23.83, a PEG ratio of 2.58 and a beta of 0.62. 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 business's 50 day simple moving average is $81.49 and its 200 day simple moving average is $76.71.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last released its quarterly earnings data 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. Archer Daniels Midland had a net margin of 2.16% and a return on equity of 9.21%. The company had revenue of $22.68 billion for the quarter, compared to analyst estimates of $22.75 billion. During the same period in the previous year, the business earned $0.93 EPS. Archer Daniels Midland's revenue for the quarter was up 7.2% compared to the same quarter last year. Archer Daniels Midland has set its FY 2026 guidance at 5.150-5.600 EPS. On average, research analysts expect that Archer Daniels Midland Company will post 5.46 EPS for the current fiscal year.

Archer Daniels Midland Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Wednesday, August 19th were given a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Wednesday, August 19th. Archer Daniels Midland's dividend payout ratio (DPR) is presently 56.99%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Quadrant Capital Group LLC lifted its holdings in Archer Daniels Midland by 0.6% during the 4th quarter. Quadrant Capital Group LLC now owns 23,166 shares of the company's stock valued at $1,332,000 after purchasing an additional 146 shares during the last quarter. Atlantic Union Bankshares Corp raised its position in shares of Archer Daniels Midland by 5.1% in the fourth quarter. Atlantic Union Bankshares Corp now owns 3,127 shares of the company's stock valued at $180,000 after purchasing an additional 153 shares during the period. Summit Financial LLC lifted its stake in shares of Archer Daniels Midland by 0.9% during the 4th quarter. Summit Financial LLC now owns 16,947 shares of the company's stock worth $974,000 after buying an additional 153 shares during the last quarter. QRG Capital Management Inc. lifted its stake in shares of Archer Daniels Midland by 0.8% during the 1st quarter. QRG Capital Management Inc. now owns 20,648 shares of the company's stock worth $1,501,000 after buying an additional 164 shares during the last quarter. Finally, Midwest Trust Co boosted its holdings in shares of Archer Daniels Midland by 4.3% during the 1st quarter. Midwest Trust Co now owns 4,009 shares of the company's stock worth $291,000 after buying an additional 167 shares during the period. 78.28% of the stock is owned by institutional investors and hedge funds.

Archer Daniels Midland Company Profile

Archer Daniels Midland Company NYSE: ADM is a global agricultural origination and processing company. Founded in 1902, ADM connects farmers and agricultural markets with food, beverage, animal nutrition and industrial customers by sourcing, transporting, storing and processing crops and other agricultural commodities.

The company's operations include the processing of oilseeds such as soybeans, canola and sunflower seeds into vegetable oils, protein meals and other ingredients. ADM also produces corn and wheat-based sweeteners, starches, flours, fibers and other carbohydrate products, along with plant-based proteins, flavors, emulsifiers and specialty ingredients used in food and beverage manufacturing.

ADM serves customers in markets around the world through its agricultural services, commodity merchandising, transportation, processing and storage networks.

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