Archer-Daniels-Midland (NYSE:ADM) Downgraded to Underperform Rating by Bank of America

Bank of America cut shares of Archer-Daniels-Midland (NYSE:ADM) from a neutral rating to an underperform rating in a research note published on Thursday morning, MarketBeat.com reports. They currently have $45.00 price target on the stock, down from their previous price target of $47.00.

A number of other brokerages have also issued reports on ADM. Stephens cut their target price on Archer-Daniels-Midland from $55.00 to $52.00 in a research report on Tuesday, February 4th. Barclays reduced their price objective on shares of Archer-Daniels-Midland from $50.00 to $48.00 and set an “underweight” rating for the company in a research note on Monday, February 24th. Morgan Stanley cut their price target on shares of Archer-Daniels-Midland from $52.00 to $47.00 and set an “equal weight” rating on the stock in a report on Tuesday, February 11th. Citigroup decreased their price objective on shares of Archer-Daniels-Midland from $51.00 to $49.00 and set a “neutral” rating for the company in a research note on Tuesday, April 15th. Finally, BMO Capital Markets cut their target price on shares of Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 5th. Two analysts have rated the stock with a sell rating and six have issued a hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $52.50.

Archer-Daniels-Midland Price Performance

Shares of Archer-Daniels-Midland stock opened at $48.55 on Thursday. Archer-Daniels-Midland has a 52 week low of $40.98 and a 52 week high of $66.08. The company has a current ratio of 1.39, a quick ratio of 0.81 and a debt-to-equity ratio of 0.34. The stock has a market cap of $23.33 billion, a PE ratio of 13.45, a price-to-earnings-growth ratio of 1.54 and a beta of 0.69. The company’s 50-day moving average price is $47.01 and its two-hundred day moving average price is $49.54.

Archer-Daniels-Midland (NYSE:ADM) last released its earnings results on Tuesday, May 6th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.69 by $0.01. The business had revenue of $20.18 billion during the quarter, compared to analyst estimates of $22.05 billion. Archer-Daniels-Midland had a net margin of 2.10% and a return on equity of 10.44%. The business’s quarterly revenue was down 7.7% on a year-over-year basis. During the same period in the prior year, the business earned $1.46 earnings per share. As a group, sell-side analysts anticipate that Archer-Daniels-Midland will post 4.31 EPS for the current fiscal year.

Archer-Daniels-Midland Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 11th. Stockholders of record on Wednesday, May 21st will be paid a $0.51 dividend. This represents a $2.04 dividend on an annualized basis and a dividend yield of 4.20%. The ex-dividend date of this dividend is Wednesday, May 21st. Archer-Daniels-Midland’s dividend payout ratio (DPR) is presently 72.86%.

Institutional Trading of Archer-Daniels-Midland

Institutional investors have recently bought and sold shares of the company. Charles Schwab Investment Management Inc. lifted its holdings in shares of Archer-Daniels-Midland by 350.4% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 17,455,324 shares of the company’s stock valued at $838,030,000 after buying an additional 13,579,379 shares during the last quarter. Norges Bank bought a new position in Archer-Daniels-Midland during the fourth quarter valued at approximately $333,521,000. Pacer Advisors Inc. lifted its stake in Archer-Daniels-Midland by 28.4% in the fourth quarter. Pacer Advisors Inc. now owns 10,382,639 shares of the company’s stock valued at $524,531,000 after acquiring an additional 2,296,193 shares during the last quarter. Wellington Management Group LLP grew its position in Archer-Daniels-Midland by 8.9% in the fourth quarter. Wellington Management Group LLP now owns 21,152,539 shares of the company’s stock worth $1,068,626,000 after acquiring an additional 1,722,428 shares in the last quarter. Finally, Invesco Ltd. increased its stake in shares of Archer-Daniels-Midland by 24.8% during the 4th quarter. Invesco Ltd. now owns 7,145,818 shares of the company’s stock worth $361,007,000 after purchasing an additional 1,420,625 shares during the last quarter. 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.