Stock Traders Purchase High Volume of Call Options on Archer Daniels Midland (NYSE:ADM)

Key Points

• Archer Daniels Midland saw a significant uptick in options trading, with stock traders purchasing 34,676 call options, representing a 576% increase from its average daily volume.
• The company's stock increased by 0.5%, reaching $59.94, with a total trading volume of 3,474,285 shares on Tuesday.
• Archer Daniels Midland announced a quarterly dividend of $0.51 per share, which will be paid on September 10, reflecting an annualized dividend yield of 3.4%.

Archer Daniels Midland Company (NYSE:ADM - Get Free Report) saw unusually large options trading on Tuesday. Stock traders bought 34,676 call options on the company. Thisisanincreaseofapproximately576% compared to the typical daily volume of 5,128 call options.

Archer Daniels Midland Stock Up 0.5%

Shares of Archer Daniels Midland stock traded up $0.2710 during midday trading on Tuesday, hitting $59.9410. The company's stock had a trading volume of 3,474,285 shares, compared to its average volume of 3,967,999. The firm has a market capitalization of $28.80 billion, a P/E ratio of 26.41, a PEG ratio of 3.18 and a beta of 0.68. The stock has a 50-day simple moving average of $54.75 and a 200-day simple moving average of $49.91. The company has a quick ratio of 0.90, a current ratio of 1.42 and a debt-to-equity ratio of 0.34. Archer Daniels Midland has a 1-year low of $40.98 and a 1-year high of $62.61.

Archer Daniels Midland (NYSE:ADM - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.93 EPS for the quarter, beating 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 quarter in the previous year, the company posted $1.03 earnings per share. The business's quarterly revenue was down 4.9% compared to the same quarter last year. Archer Daniels Midland has set its FY 2025 guidance at 4.000-4.000 EPS. As a group, sell-side analysts expect that Archer Daniels Midland will post 4.31 earnings per share for the current year.

Archer Daniels Midland Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Wednesday, August 20th will be paid a dividend of $0.51 per share. The ex-dividend date is Wednesday, August 20th. This represents a $2.04 annualized dividend and a yield of 3.4%. Archer Daniels Midland's dividend payout ratio is presently 89.87%.

Institutional Trading of Archer Daniels Midland

A number of hedge funds have recently modified their holdings of the company. SOA Wealth Advisors LLC. bought a new position in shares of Archer Daniels Midland in the 2nd quarter worth $25,000. S.A. Mason LLC bought a new stake in shares of Archer Daniels Midland in the first quarter valued at about $25,000. Headlands Technologies LLC bought a new stake in Archer Daniels Midland during the first quarter worth about $25,000. Trust Co. of Toledo NA OH bought a new stake in Archer Daniels Midland during the second quarter worth about $32,000. Finally, Elevation Point Wealth Partners LLC bought a new stake in Archer Daniels Midland during the second quarter worth about $36,000. Institutional investors own 78.28% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Barclays raised Archer Daniels Midland from an "underweight" rating to an "equal weight" rating and raised their price target for the stock from $50.00 to $61.00 in a report on Wednesday, August 6th. Morgan Stanley raised their price target on Archer Daniels Midland from $47.00 to $57.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 12th. Wall Street Zen raised Archer Daniels Midland from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Bank of America downgraded Archer Daniels Midland from a "neutral" rating to an "underperform" rating and cut their target price for the company from $47.00 to $45.00 in a research note on Thursday, May 8th. Finally, UBS Group reiterated a "buy" rating and set a $70.00 price target (up from $60.00) on shares of Archer Daniels Midland in a research report on Monday, August 11th. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $54.71.

About Archer Daniels Midland

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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