Zacks Investment Research lowered shares of Archer Daniels Midland (NYSE:ADM) from a buy rating to a hold rating in a research note released on Friday.
According to Zacks, “Archer Daniels reported soft fourth-quarter 2018 results, wherein both the top and bottom lines missed estimates. The company delivered negative earnings surprise after four straight beats, with second consecutive sales miss. The top line also fell year over year due to decline in sales at most of its segments. Archer Daniels continues to witness sluggishness in its Carbohydrate Solutions segment, which is likely to persist. The segment’s results are expected to be lower in the first quarter of 2019 due to pressures on European sweetener and North American ethanol industry margins, and issues related to the Decatur plant. Also, the stock has underperformed the industry in the past three months. Nevertheless, the company remains confident about its strategic efforts like portfolio management initiatives, cost-savings plan and Readiness program. Further, it issued upbeat first-quarter view for its rest three segments.”
Several other research firms have also recently weighed in on ADM. Argus raised Archer Daniels Midland from a hold rating to a buy rating and set a $53.00 price target for the company in a report on Thursday, November 8th. Credit Suisse Group set a $46.00 price objective on Archer Daniels Midland and gave the stock a neutral rating in a research note on Wednesday, January 23rd. Finally, Stifel Nicolaus upgraded Archer Daniels Midland from a hold rating to a buy rating and set a $41.40 price objective on the stock in a research note on Friday. Eight analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The stock presently has an average rating of Hold and a consensus price target of $49.67.
Archer Daniels Midland (NYSE:ADM) last released its quarterly earnings results on Tuesday, February 5th. The company reported $0.88 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.92 by ($0.04). The firm had revenue of $15.95 billion for the quarter, compared to analyst estimates of $16.83 billion. Archer Daniels Midland had a return on equity of 10.51% and a net margin of 2.81%. The business’s revenue for the quarter was down .8% on a year-over-year basis. During the same period in the previous year, the business posted $0.82 earnings per share. As a group, equities research analysts forecast that Archer Daniels Midland will post 3.54 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 12th. Shareholders of record on Tuesday, February 19th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 3.35%. The ex-dividend date is Friday, February 15th. This is a positive change from Archer Daniels Midland’s previous quarterly dividend of $0.34. Archer Daniels Midland’s dividend payout ratio (DPR) is 38.29%.
In related news, Director Donald E. Felsinger acquired 60,000 shares of the stock in a transaction on Thursday, February 7th. The shares were purchased at an average price of $41.80 per share, for a total transaction of $2,508,000.00. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. 0.94% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently modified their holdings of ADM. Cedar Wealth Management LLC acquired a new stake in shares of Archer Daniels Midland during the 4th quarter valued at $25,000. Alpha Omega Wealth Management LLC acquired a new stake in shares of Archer Daniels Midland during the 4th quarter valued at $25,000. We Are One Seven LLC acquired a new stake in shares of Archer Daniels Midland during the 4th quarter valued at $27,000. Proficio Capital Partners LLC boosted its holdings in shares of Archer Daniels Midland by 73.4% during the 4th quarter. Proficio Capital Partners LLC now owns 992 shares of the company’s stock valued at $41,000 after acquiring an additional 420 shares in the last quarter. Finally, Lindbrook Capital LLC acquired a new stake in shares of Archer Daniels Midland during the 4th quarter valued at $40,000. Institutional investors own 75.82% of the company’s stock.
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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