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 report sent to investors on Tuesday morning, Marketbeat Ratings reports. The firm currently has $54.00 price objective on the stock, down from their previous price objective of $63.00.

Several other research firms have also recently commented on ADM. BMO Capital Markets cut their price target on Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating for the company in a research note on Wednesday, December 4th. Citigroup upped their price objective on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 4th. Morgan Stanley lowered their target price on shares of Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating on the stock in a report on Tuesday, November 12th. Stephens began coverage on shares of Archer-Daniels-Midland in a report on Wednesday, December 11th. They set an “equal weight” rating and a $55.00 price target for the company. Finally, Barclays lowered their price objective on Archer-Daniels-Midland from $60.00 to $56.00 and set an “underweight” rating on the stock in a report on Wednesday, December 4th. Two analysts have rated the stock with a sell rating and fourteen have assigned a hold rating to the company. Based on data from MarketBeat, Archer-Daniels-Midland has an average rating of “Hold” and a consensus target price of $59.08.

Archer-Daniels-Midland Stock Performance

Shares of ADM stock opened at $51.26 on Tuesday. Archer-Daniels-Midland has a 52-week low of $48.40 and a 52-week high of $69.85. The stock’s 50-day moving average price is $51.82 and its 200 day moving average price is $57.02. The company has a quick ratio of 0.84, a current ratio of 1.40 and a debt-to-equity ratio of 0.34. The stock has a market capitalization of $24.53 billion, a PE ratio of 14.65 and a beta of 0.72.

Archer-Daniels-Midland Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Thursday, November 21st. This represents a $2.00 dividend on an annualized basis and a yield of 3.90%. Archer-Daniels-Midland’s payout ratio is 57.14%.

Archer-Daniels-Midland declared that its Board of Directors has authorized a share repurchase plan on Wednesday, December 11th that permits the company to repurchase 100,000,000 shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ADM. Harbor Capital Advisors Inc. acquired a new position in Archer-Daniels-Midland during the third quarter worth about $25,000. Ashton Thomas Securities LLC acquired a new stake in shares of Archer-Daniels-Midland in the third quarter valued at approximately $26,000. Altshuler Shaham Ltd purchased a new position in shares of Archer-Daniels-Midland during the 2nd quarter worth approximately $28,000. Peterson Financial Group Inc. purchased a new stake in Archer-Daniels-Midland in the 3rd quarter valued at approximately $28,000. Finally, ST Germain D J Co. Inc. grew its holdings in Archer-Daniels-Midland by 724.6% during the 4th quarter. ST Germain D J Co. Inc. now owns 569 shares of the company’s stock valued at $29,000 after buying an additional 500 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.