Archer-Daniels-Midland (NYSE:ADM) Reaches New 1-Year Low – Time to Sell?

Shares of Archer-Daniels-Midland Company (NYSE:ADM) hit a new 52-week low on Wednesday . The company traded as low as $48.77 and last traded at $48.78, with a volume of 177970 shares trading hands. The stock had previously closed at $49.43.

Wall Street Analyst Weigh In

ADM has been the subject of a number of research reports. Citigroup upped their target price on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. Morgan Stanley dropped their price objective on shares of Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 12th. Barclays decreased their target price on shares of Archer-Daniels-Midland from $60.00 to $56.00 and set an “underweight” rating on the stock in a research note on Wednesday, December 4th. BMO Capital Markets dropped 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 report on Wednesday, December 4th. Finally, Stephens started coverage on Archer-Daniels-Midland in a research report on Wednesday, December 11th. They set an “equal weight” rating and a $55.00 price objective on the stock. One analyst has rated the stock with a sell rating and fifteen have issued a hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $60.62.

Archer-Daniels-Midland Stock Down 0.8 %

The business has a 50-day moving average of $52.19 and a 200-day moving average of $57.37. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 1.40. The stock has a market capitalization of $23.47 billion, a price-to-earnings ratio of 14.01 and a beta of 0.72.

Archer-Daniels-Midland Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 12th. Stockholders of record on Thursday, November 21st were issued a $0.50 dividend. The ex-dividend date of this dividend was Thursday, November 21st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 4.08%. Archer-Daniels-Midland’s payout ratio is 57.14%.

Archer-Daniels-Midland announced that its Board of Directors has initiated 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 often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ADM. Pacer Advisors Inc. grew its holdings in Archer-Daniels-Midland by 15,790.1% during the second quarter. Pacer Advisors Inc. now owns 7,596,892 shares of the company’s stock worth $459,232,000 after acquiring an additional 7,549,083 shares during the period. Wellington Management Group LLP increased its holdings in shares of Archer-Daniels-Midland by 41.5% in the 3rd quarter. Wellington Management Group LLP now owns 19,430,111 shares of the company’s stock valued at $1,160,755,000 after purchasing an additional 5,702,451 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Archer-Daniels-Midland by 73.6% in the second quarter. AQR Capital Management LLC now owns 2,830,927 shares of the company’s stock valued at $170,960,000 after purchasing an additional 1,199,992 shares during the period. State Street Corp grew its position in Archer-Daniels-Midland by 3.3% during the third quarter. State Street Corp now owns 32,045,672 shares of the company’s stock worth $1,914,408,000 after buying an additional 1,018,256 shares during the period. Finally, FMR LLC grew its holdings in shares of Archer-Daniels-Midland by 33.9% in the 3rd quarter. FMR LLC now owns 3,979,867 shares of the company’s stock worth $237,757,000 after acquiring an additional 1,007,494 shares during the period. Hedge funds and other 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.