Archer-Daniels-Midland (NYSE:ADM) Sets New 1-Year Low - Here's Why

Archer-Daniels-Midland Company (NYSE:ADM - Get Free Report)'s stock price hit a new 52-week low on Thursday . The stock traded as low as $44.96 and last traded at $45.04, with a volume of 341289 shares changing hands. The stock had previously closed at $45.22.

Wall Street Analyst Weigh In

A number of research firms have issued reports on ADM. Bank of America lowered their target price on Archer-Daniels-Midland from $54.00 to $48.00 and set an "underperform" rating on the stock in a report on Tuesday, February 11th. Morgan Stanley dropped their target price on shares of Archer-Daniels-Midland from $52.00 to $47.00 and set an "equal weight" rating on the stock in a research report on Tuesday, February 11th. Citigroup increased their price target on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a "neutral" rating in a report on Wednesday, December 4th. Stephens dropped their price objective on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a report on Tuesday, February 4th. Finally, BMO Capital Markets reduced their target price on shares of Archer-Daniels-Midland from $51.00 to $49.00 and set a "market perform" rating for the company in a research note on Wednesday, February 5th. Two equities research analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company's stock. According to data from MarketBeat, Archer-Daniels-Midland presently has a consensus rating of "Hold" and a consensus price target of $55.11.

Archer-Daniels-Midland Stock Up 0.9 %

The company has a quick ratio of 0.84, a current ratio of 5.44 and a debt-to-equity ratio of 0.37. The business has a fifty day simple moving average of $50.06 and a two-hundred day simple moving average of $54.73. The company has a market capitalization of $22.07 billion, a price-to-earnings ratio of 12.77 and a beta of 0.72.

Archer-Daniels-Midland (NYSE:ADM - Get Free Report) last announced its quarterly earnings results on Tuesday, February 4th. The company reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.07. Archer-Daniels-Midland had a net margin of 2.10% and a return on equity of 10.44%. The firm had revenue of $21.50 billion during the quarter, compared to the consensus estimate of $22.77 billion. During the same period last year, the firm posted $1.36 EPS. The firm's quarterly revenue was down 6.4% on a year-over-year basis. Equities analysts expect that Archer-Daniels-Midland Company will post 4.53 EPS for the current year.

Archer-Daniels-Midland Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 18th will be issued a dividend of $0.51 per share. This is a boost from Archer-Daniels-Midland's previous quarterly dividend of $0.50. This represents a $2.04 annualized dividend and a yield of 4.42%. The ex-dividend date is Tuesday, February 18th. Archer-Daniels-Midland's payout ratio is currently 55.40%.

Archer-Daniels-Midland announced that its board has authorized a share buyback program on Wednesday, December 11th that allows the company to buyback 100,000,000 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Institutional Trading of Archer-Daniels-Midland

Institutional investors have recently bought and sold shares of the business. Sumitomo Mitsui DS Asset Management Company Ltd boosted its holdings in Archer-Daniels-Midland by 1.0% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 51,984 shares of the company's stock worth $3,106,000 after buying an additional 537 shares during the last quarter. Blue Trust Inc. boosted its stake in Archer-Daniels-Midland by 120.9% during the 3rd quarter. Blue Trust Inc. now owns 4,796 shares of the company's stock worth $290,000 after acquiring an additional 2,625 shares during the last quarter. OLD National Bancorp IN grew its holdings in Archer-Daniels-Midland by 0.9% during the third quarter. OLD National Bancorp IN now owns 20,648 shares of the company's stock valued at $1,234,000 after purchasing an additional 189 shares during the period. Vest Financial LLC increased its stake in Archer-Daniels-Midland by 8.9% in the third quarter. Vest Financial LLC now owns 782,428 shares of the company's stock valued at $46,742,000 after purchasing an additional 63,716 shares in the last quarter. Finally, Godsey & Gibb Inc. raised its holdings in Archer-Daniels-Midland by 2.3% in the third quarter. Godsey & Gibb Inc. now owns 294,754 shares of the company's stock worth $17,609,000 after purchasing an additional 6,723 shares during the period. Institutional investors and hedge funds own 78.28% of the company's stock.

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.