Archer Daniels Midland (NYSE:ADM) Shares Gap Down – Time to Sell?

Archer Daniels Midland Company (NYSE:ADM)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $68.08, but opened at $62.42. Archer Daniels Midland shares last traded at $65.4090, with a volume of 997,877 shares traded.

Analysts Set New Price Targets

A number of research firms have recently commented on ADM. UBS Group reiterated a “buy” rating on shares of Archer Daniels Midland in a report on Monday, December 15th. BMO Capital Markets restated a “market perform” rating and issued a $63.00 price target on shares of Archer Daniels Midland in a research note on Wednesday. JPMorgan Chase & Co. increased their price objective on Archer Daniels Midland from $60.00 to $61.00 and gave the company an “underweight” rating in a research report on Wednesday. Morgan Stanley lowered Archer Daniels Midland from an “equal weight” rating to an “underweight” rating and decreased their target price for the stock from $57.00 to $50.00 in a research report on Tuesday, December 16th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Archer Daniels Midland in a research note on Wednesday, January 21st. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price of $57.00.

Archer Daniels Midland Stock Down 2.8%

The company has a current ratio of 11.20, a quick ratio of 0.92 and a debt-to-equity ratio of 0.33. The stock has a market cap of $31.44 billion, a P/E ratio of 29.47, a PEG ratio of 4.82 and a beta of 0.71. The company’s 50 day moving average price is $61.67 and its two-hundred day moving average price is $60.52.

Archer Daniels Midland (NYSE:ADM) last announced its earnings results on Tuesday, February 3rd. The company reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.07. The business had revenue of $18.56 billion during the quarter, compared to analysts’ expectations of $21.03 billion. Archer Daniels Midland had a net margin of 1.34% and a return on equity of 7.39%. The firm’s revenue was down 13.7% on a year-over-year basis. During the same period in the prior year, the company earned $1.14 earnings per share. Archer Daniels Midland has set its FY 2026 guidance at 3.600-4.250 EPS. Equities analysts forecast that Archer Daniels Midland Company will post 4.31 earnings per share for the current year.

Archer Daniels Midland Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 17th will be paid a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 3.2%. This is an increase from Archer Daniels Midland’s previous quarterly dividend of $0.51. The ex-dividend date of this dividend is Tuesday, February 17th. Archer Daniels Midland’s dividend payout ratio is 83.27%.

Institutional Investors Weigh In On Archer Daniels Midland

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADM. Vanguard Group Inc. increased its stake in shares of Archer Daniels Midland by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 59,180,117 shares of the company’s stock worth $3,402,265,000 after purchasing an additional 536,265 shares in the last quarter. State Street Corp grew its holdings in Archer Daniels Midland by 0.7% during the 2nd quarter. State Street Corp now owns 34,617,404 shares of the company’s stock valued at $1,827,107,000 after buying an additional 223,716 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in Archer Daniels Midland by 3.6% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 18,076,118 shares of the company’s stock worth $954,058,000 after acquiring an additional 620,794 shares during the last quarter. Dodge & Cox raised its holdings in shares of Archer Daniels Midland by 130.1% in the third quarter. Dodge & Cox now owns 15,068,544 shares of the company’s stock worth $900,195,000 after buying an additional 8,518,920 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Archer Daniels Midland by 2.3% during the 2nd quarter. Geode Capital Management LLC now owns 12,457,546 shares of the company’s stock worth $654,772,000 after acquiring an additional 283,207 shares during the last quarter. 78.28% of the stock is owned by hedge funds and other institutional investors.

About Archer Daniels Midland

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.