Bank of America Lowers Archer-Daniels-Midland (NYSE:ADM) Price Target to $48.00

Archer-Daniels-Midland (NYSE:ADM) had its price objective lowered by equities researchers at Bank of America from $54.00 to $48.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has an “underperform” rating on the stock. Bank of America‘s price objective would suggest a potential upside of 4.47% from the stock’s previous close.

A number of other brokerages have also recently issued reports on ADM. Morgan Stanley lowered their price objective on Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating on the stock in a research note on Tuesday, November 12th. Barclays dropped their price target on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating on the stock in a research note on Tuesday, January 21st. BMO Capital Markets lowered 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 report on Wednesday, February 5th. Stephens reduced their price target on Archer-Daniels-Midland from $55.00 to $52.00 in a research report on Tuesday, February 4th. Finally, Citigroup increased their price objective on Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. Two analysts have rated the stock with a sell rating and seven have given a hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $55.67.

Archer-Daniels-Midland Stock Performance

NYSE:ADM opened at $45.95 on Tuesday. The company has a market capitalization of $21.99 billion, a PE ratio of 12.75 and a beta of 0.72. Archer-Daniels-Midland has a fifty-two week low of $45.01 and a fifty-two week high of $66.08. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.84 and a current ratio of 5.44. The company has a 50 day simple moving average of $50.56 and a two-hundred day simple moving average of $55.21.

Archer-Daniels-Midland (NYSE:ADM) last released its quarterly earnings results on Tuesday, February 4th. The company reported $1.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.07 by $0.07. Archer-Daniels-Midland had a return on equity of 10.44% and a net margin of 2.10%. The business had revenue of $21.50 billion during the quarter, compared to the consensus estimate of $22.77 billion. During the same quarter in the previous year, the business earned $1.36 EPS. The company’s quarterly revenue was down 6.4% on a year-over-year basis. Research analysts anticipate that Archer-Daniels-Midland will post 4.53 earnings per share for the current year.

Archer-Daniels-Midland announced that its Board of Directors has initiated a stock repurchase plan 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. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Archer-Daniels-Midland

Hedge funds have recently modified their holdings of the business. Royal London Asset Management Ltd. increased its holdings in Archer-Daniels-Midland by 3.9% in the 4th quarter. Royal London Asset Management Ltd. now owns 300,895 shares of the company’s stock worth $15,201,000 after acquiring an additional 11,183 shares in the last quarter. FreeGulliver LLC raised its position in shares of Archer-Daniels-Midland by 133.3% during the 4th quarter. FreeGulliver LLC now owns 8,000 shares of the company’s stock valued at $404,000 after purchasing an additional 4,571 shares during the period. Xponance Inc. boosted its holdings in Archer-Daniels-Midland by 3.4% in the 4th quarter. Xponance Inc. now owns 133,947 shares of the company’s stock worth $6,767,000 after buying an additional 4,427 shares during the period. Generali Asset Management SPA SGR bought a new stake in Archer-Daniels-Midland during the fourth quarter valued at about $821,000. Finally, Horizon Investments LLC boosted its stake in shares of Archer-Daniels-Midland by 3.5% in the fourth quarter. Horizon Investments LLC now owns 8,529 shares of the company’s stock worth $431,000 after acquiring an additional 285 shares during the period. Institutional investors own 78.28% of the company’s stock.

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.