Zacks Investment Research downgraded shares of Archer Daniels Midland (NYSE:ADM) from a buy rating to a hold rating in a research report released on Thursday.
According to Zacks, “Archer Daniels outperformed the industry in the last six months. The company reported solid fourth-quarter 2017 earnings, wherein the bottom line beat estimates and increased year over year, backed by its strategic initiatives. Notably, it remains on track with the accomplishments regarding operational excellence and readiness program, and is likely to continue with further 1ADM rollouts in 2018. Also, it plans to achieve $200 million in run-rate savings by the end of 2018. However, the company has a dismal sales surprise history for more than three years now. Unfortunately, the drab trend lingered in the fourth quarter, wherein the top line was marred by softness across most units. Nonetheless, Oilseeds posted improved sales, and is likely to keep up its favorable trend in future. Also, management remains encouraged to deliver growth in 2018 through cost-savings efforts, enhanced capabilities, product innovations and global strength.”
ADM has been the subject of several other reports. Robert W. Baird raised their target price on Archer Daniels Midland from $47.00 to $49.00 and gave the company an outperform rating in a research note on Wednesday, February 7th. Stifel Nicolaus lowered their target price on Archer Daniels Midland from $44.00 to $43.00 and set a hold rating for the company in a research note on Monday, January 22nd. Buckingham Research upgraded Archer Daniels Midland from a neutral rating to a buy rating and raised their target price for the company from $41.64 to $47.00 in a research note on Wednesday, February 28th. Citigroup upgraded Archer Daniels Midland from a neutral rating to a buy rating and raised their target price for the company from $42.72 to $49.00 in a research note on Tuesday, March 6th. Finally, Stephens upgraded Archer Daniels Midland from an equal weight rating to an overweight rating in a research note on Wednesday, February 7th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $44.16.
Archer Daniels Midland (NYSE:ADM) last announced its earnings results on Tuesday, February 6th. The company reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.12. The company had revenue of $16.07 billion during the quarter, compared to the consensus estimate of $16.64 billion. Archer Daniels Midland had a return on equity of 7.91% and a net margin of 2.62%. The company’s revenue was down 2.6% on a year-over-year basis. During the same period last year, the firm earned $0.75 earnings per share. equities research analysts anticipate that Archer Daniels Midland will post 2.85 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 13th. Investors of record on Tuesday, February 20th will be paid a $0.335 dividend. This represents a $1.34 dividend on an annualized basis and a yield of 3.09%. This is an increase from Archer Daniels Midland’s previous quarterly dividend of $0.32. The ex-dividend date is Friday, February 16th. Archer Daniels Midland’s dividend payout ratio (DPR) is 63.51%.
A number of large investors have recently bought and sold shares of the stock. Green Square Capital LLC grew its stake in Archer Daniels Midland by 25.0% in the fourth quarter. Green Square Capital LLC now owns 162,598 shares of the company’s stock worth $6,517,000 after purchasing an additional 32,564 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its stake in Archer Daniels Midland by 11.4% in the fourth quarter. Cambridge Investment Research Advisors Inc. now owns 48,283 shares of the company’s stock worth $1,935,000 after purchasing an additional 4,941 shares in the last quarter. Xact Kapitalforvaltning AB grew its stake in Archer Daniels Midland by 7.5% in the fourth quarter. Xact Kapitalforvaltning AB now owns 93,679 shares of the company’s stock worth $3,755,000 after purchasing an additional 6,576 shares in the last quarter. Envestnet Asset Management Inc. lifted its holdings in Archer Daniels Midland by 38.2% in the fourth quarter. Envestnet Asset Management Inc. now owns 70,634 shares of the company’s stock worth $2,831,000 after acquiring an additional 19,508 shares during the last quarter. Finally, CNB Bank bought a new position in Archer Daniels Midland in the fourth quarter worth about $112,000. Institutional investors and hedge funds own 76.54% of the company’s stock.
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About Archer Daniels Midland
Archer-Daniels-Midland Company is a processor of oilseeds, corn, wheat, cocoa and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients. Its segments include Agricultural Services, which utilizes its United States grain elevator, global transportation network and port operations to buy, store, clean and transport agricultural commodities, such as oilseeds, wheat, milo, oats, rice and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry; Corn Processing, which is engaged in corn wet milling and dry milling activities; Oilseeds Processing, which includes global activities related to the origination, merchandising, crushing and further processing of oilseeds; Wild Flavors and Specialty Ingredients products, which include flavors, sweeteners and health ingredients; Other, and Corporate.
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