Andersons (NASDAQ:ANDE) Stock Falls 10% – What’s Next?

The Andersons, Inc. (NASDAQ:ANDE) dropped 10% during trading on Wednesday. The company traded as low as $56.79 and last traded at $56.3840. Approximately 33,442 shares were traded during mid-day trading, a decline of 90% from the average session volume of 337,436 shares. The stock had previously closed at $62.67.

Key Stories Impacting Andersons

Here are the key news stories impacting Andersons this week:

• Positive Sentiment: Third-quarter adjusted EPS was $1.38, beating the $1.11 consensus estimate, while revenue rose 5.8% year over year. The company also reported record quarterly net income, with Renewables delivering record pretax income of $63 million. Third-quarter results
• Positive Sentiment: The Andersons agreed to acquire Harvestone Low Carbon Partners for $915 million, adding about 215 million gallons of annual ethanol capacity and expanding its Renewables platform by more than 40%. Management expects the acquisition to be immediately accretive to earnings per share and cash flow. Acquisition announcement
• Negative Sentiment: Quarterly revenue of $2.83 billion fell short of analysts’ $2.97 billion expectation, tempering the earnings beat. Third-quarter results
• Negative Sentiment: The acquisition’s substantial cost may raise investor concerns about execution and the value assigned to expected incentives: approximately half the purchase price is attributed to anticipated 45Z and 45Q tax-credit cash flows. Acquisition announcement

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ANDE. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Andersons in a research note on Tuesday, August 4th. Weiss Ratings upgraded shares of Andersons from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. BMO Capital Markets upped their price objective on Andersons from $75.00 to $90.00 and gave the company an “outperform” rating in a research note on Wednesday, August 5th. Finally, Wall Street Zen raised Andersons from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 17th. One research analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company’s stock. Based on data from MarketBeat.com, Andersons has a consensus rating of “Buy” and an average price target of $95.00.

Andersons Stock Down 12.9%

The firm has a market capitalization of $1.86 billion, a price-to-earnings ratio of 10.56 and a beta of 0.63. The firm has a fifty day moving average price of $66.85 and a 200 day moving average price of $69.08. The company has a current ratio of 1.51, a quick ratio of 0.81 and a debt-to-equity ratio of 0.42.

Andersons (NASDAQ:ANDE) last announced its earnings results on Tuesday, November 3rd. The basic materials company reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.11 by $0.27. Andersons had a return on equity of 16.23% and a net margin of 1.62%. The company had revenue of $2.83 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same period last year, the company posted $0.59 earnings per share. The firm’s quarterly revenue was up 5.8% compared to the same quarter last year.

Andersons Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 22nd. Shareholders of record on Thursday, October 1st were given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.5%. The ex-dividend date was Thursday, October 1st. Andersons’s dividend payout ratio (DPR) is presently 15.44%.

Hedge Funds Weigh In On Andersons

A number of large investors have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC increased its holdings in shares of Andersons by 23.1% in the third quarter. Allspring Global Investments Holdings LLC now owns 24,704 shares of the basic materials company’s stock valued at $1,618,000 after purchasing an additional 4,630 shares in the last quarter. Parallel Advisors LLC raised its position in shares of Andersons by 1,326.8% during the third quarter. Parallel Advisors LLC now owns 1,598 shares of the basic materials company’s stock worth $105,000 after acquiring an additional 1,486 shares during the last quarter. ProShare Advisors LLC lifted its stake in shares of Andersons by 27.3% during the third quarter. ProShare Advisors LLC now owns 126,268 shares of the basic materials company’s stock valued at $8,296,000 after acquiring an additional 27,111 shares during the period. State of Wyoming boosted its holdings in Andersons by 27.9% in the third quarter. State of Wyoming now owns 4,108 shares of the basic materials company’s stock valued at $270,000 after acquiring an additional 896 shares during the last quarter. Finally, Fifth Third Wealth Advisors LLC acquired a new stake in Andersons in the third quarter worth about $469,000. 87.06% of the stock is currently owned by institutional investors and hedge funds.

About Andersons

The Andersons, Inc (NASDAQ: ANDE) is an agribusiness company that provides products and services supporting the agricultural supply chain. Founded in 1947 and headquartered in Maumee, Ohio, the company serves farmers, agricultural retailers, manufacturers, and other customers primarily in North America.

The company’s Trade segment merchandises and manages the movement and storage of grains and other agricultural commodities. Its operations include grain elevators, commodity trading, logistics, and related services that connect producers with domestic and international markets.

Through its Ethanol segment, The Andersons produces renewable fuels and markets co-products such as distillers grains and corn oil.