Archer Daniels Midland (ADM) Upgraded to “Strong-Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Archer Daniels Midland (NYSE:ADM) from a hold rating to a strong-buy rating in a report released on Tuesday morning. The brokerage currently has $48.00 price objective on the stock.
According to Zacks, “Archer Daniels outperformed the industry in the past year, courtesy of progress on portfolio management initiatives, cost-savings plan and Readiness program. The company reported impressive third-quarter 2018 results, wherein earnings outpaced estimates. Moreover, both earnings and sales improved year over year. While the company’s earnings marked the fourth straight positive surprise, sales lagged after two consecutive beats. Further, it exceeded the $200 million savings target for 2018, generating more than $200 million in the nine months. The top line benefited from solid sales across all segments, except for the Carbohydrate Solutions that is witnessing softness due to weaker ethanol business and Bioproducts results. This is likely to continue in 2018. However, Archer Daniels is confident of delivering solid results in the fourth quarter on improving market conditions, higher global demand, and product innovations.”
Other equities research analysts also recently issued reports about the company. Argus raised Archer Daniels Midland from a hold rating to a buy rating and set a $53.00 price objective for the company in a report on Thursday, November 8th. Cleveland Research reissued a hold rating on shares of Archer Daniels Midland in a report on Monday, October 1st. Eight analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the stock. Archer Daniels Midland presently has a consensus rating of Buy and an average price target of $49.42.
Archer Daniels Midland (NYSE:ADM) last posted its quarterly earnings data on Tuesday, November 6th. The company reported $0.92 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.83 by $0.09. The business had revenue of $15.80 billion during the quarter, compared to the consensus estimate of $15.72 billion. Archer Daniels Midland had a return on equity of 10.45% and a net margin of 3.54%. The company’s revenue was up 6.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.45 earnings per share. Research analysts predict that Archer Daniels Midland will post 3.56 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, December 14th. Investors of record on Friday, November 23rd were issued a dividend of $0.335 per share. This represents a $1.34 annualized dividend and a dividend yield of 3.12%. The ex-dividend date was Wednesday, November 21st. Archer Daniels Midland’s dividend payout ratio is presently 55.14%.
In related news, CFO Ray G. Young purchased 2,100 shares of the firm’s stock in a transaction that occurred on Wednesday, November 7th. The stock was purchased at an average cost of $47.35 per share, with a total value of $99,435.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.94% of the stock is owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc raised its position in Archer Daniels Midland by 5.1% in the third quarter. Vanguard Group Inc now owns 43,289,494 shares of the company’s stock worth $2,176,164,000 after acquiring an additional 2,102,814 shares in the last quarter. Vanguard Group Inc. raised its position in Archer Daniels Midland by 5.1% in the third quarter. Vanguard Group Inc. now owns 43,289,494 shares of the company’s stock worth $2,176,164,000 after acquiring an additional 2,102,814 shares in the last quarter. PNC Financial Services Group Inc. raised its position in Archer Daniels Midland by 723.7% in the third quarter. PNC Financial Services Group Inc. now owns 1,902,120 shares of the company’s stock worth $95,622,000 after acquiring an additional 1,671,210 shares in the last quarter. Northern Trust Corp raised its position in Archer Daniels Midland by 13.1% in the second quarter. Northern Trust Corp now owns 11,824,020 shares of the company’s stock worth $541,894,000 after acquiring an additional 1,369,242 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its position in Archer Daniels Midland by 72.2% in the third quarter. Canada Pension Plan Investment Board now owns 2,961,130 shares of the company’s stock worth $148,856,000 after acquiring an additional 1,241,676 shares in the last quarter. 75.50% of the stock is owned by hedge funds and other institutional investors.
Archer Daniels Midland Company Profile
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. It operates through four segments: Carbohydrate Solutions, Nutrition, Oilseeds, and Origination. The company offers oilseeds, corn, wheat, milo, oats, rice, and barley; and structured trade finance, as well as processes wheat into wheat flour.
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