Archer Daniels Midland (NYSE:ADM) Shares Down 5.5% – Here’s Why

Archer Daniels Midland Company (NYSE:ADM)’s share price dropped 5.5% on Tuesday. The stock traded as low as $71.24 and last traded at $71.5850. Approximately 546,764 shares were traded during mid-day trading, a decline of 85% from the average session volume of 3,692,667 shares. The stock had previously closed at $75.77.

More Archer Daniels Midland News

Here are the key news stories impacting Archer Daniels Midland this week:

• Positive Sentiment: ADM reported third-quarter adjusted earnings of $1.77 per share, exceeding the $1.60 consensus estimate and nearly doubling the $0.92 earned in the year-ago quarter. ADM earnings report and conference call
• Positive Sentiment: The company raised its 2026 adjusted EPS outlook to approximately $5.50-$5.80, up from its prior range of $5.15-$5.60. Management attributed the improved outlook in part to stronger processing margins. Reuters ADM earnings coverage
• Positive Sentiment: Third-quarter net earnings were $821 million, while adjusted net earnings reached $858 million. Revenue increased 9.6% year over year, indicating continued top-line growth. ADM third-quarter results
• Neutral Sentiment: ADM’s return on equity was 9.21% and net margin was 2.16%, highlighting that profitability remains relatively narrow despite the quarterly improvement.
• Negative Sentiment: Quarterly revenue of $22.34 billion fell short of the $23.27 billion analyst estimate. The revenue miss may be overshadowing the EPS beat and guidance increase, helping explain why the shares have declined.

Analyst Ratings Changes

A number of research firms have recently weighed in on ADM. Morgan Stanley raised shares of Archer Daniels Midland from an “underweight” rating to an “equal weight” rating and upped their price target for the stock from $60.00 to $79.00 in a research note on Wednesday, August 5th. JPMorgan Chase & Co. reduced their price objective on Archer Daniels Midland from $77.00 to $75.00 and set an “underweight” rating for the company in a research report on Monday, October 12th. Weiss Ratings downgraded Archer Daniels Midland from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, October 28th. BMO Capital Markets boosted their target price on Archer Daniels Midland from $77.00 to $82.00 and gave the company a “market perform” rating in a research note on Wednesday, August 5th. Finally, Barclays upped their target price on Archer Daniels Midland from $85.00 to $90.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 5th. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $81.75.

Archer Daniels Midland Stock Performance

The stock has a market cap of $34.83 billion, a P/E ratio of 19.73, a P/E/G ratio of 2.33 and a beta of 0.64. The firm has a 50 day moving average of $81.79 and a two-hundred day moving average of $76.45. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.86 and a current ratio of 1.39.

Archer Daniels Midland (NYSE:ADM) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $1.77 earnings per share for the quarter, beating analysts’ consensus estimates of $1.60 by $0.17. The firm had revenue of $22.34 billion during the quarter, compared to the consensus estimate of $23.27 billion. Archer Daniels Midland had a net margin of 2.16% and a return on equity of 9.21%. The business’s revenue was up 9.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.92 EPS. On average, research analysts predict that Archer Daniels Midland Company will post 5.52 EPS for the current fiscal year.

Archer Daniels Midland Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Wednesday, August 19th were given a dividend of $0.52 per share. The ex-dividend date was Wednesday, August 19th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 2.9%. Archer Daniels Midland’s dividend payout ratio (DPR) is 56.99%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ADM. BlackRock Inc. acquired a new stake in shares of Archer Daniels Midland in the second quarter valued at approximately $3,409,089,000. Bank of New York Mellon Corp acquired a new stake in shares of Archer Daniels Midland in the 2nd quarter valued at $257,394,000. Legal & General Group Plc bought a new stake in shares of Archer Daniels Midland during the second quarter worth $198,233,000. Bank of America Corp DE bought a new stake in shares of Archer Daniels Midland during the second quarter worth $180,096,000. Finally, Deutsche Bank AG acquired a new position in shares of Archer Daniels Midland during the second quarter valued at $178,087,000. 78.28% of the stock is owned by institutional investors.

About Archer Daniels Midland

Archer Daniels Midland Company (NYSE: ADM) is a global agricultural origination and processing company. Founded in 1902, ADM connects farmers and producers with markets worldwide by sourcing, transporting, storing and processing crops and other agricultural commodities.

The company processes oilseeds, corn, wheat and other crops into ingredients and products used in food and beverages, animal nutrition, renewable fuels and industrial applications. Its offerings include vegetable oils, protein meals, sweeteners, starches, flour, food ingredients, animal feed ingredients and biofuels, as well as specialty ingredients developed through its nutrition businesses.

ADM operates an integrated network of agricultural facilities, processing plants, transportation assets and commercial offices serving customers across North America, South America, Europe, Asia and other international markets.