The share price of Archer-Daniels-Midland Company (NYSE:ADM) rose to $86.07 per share on Thursday from $86.00. While Archer-Daniels-Midland Company has overperformed by 0.08%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ADM rose by 45.91%, with highs and lows ranging from $98.88 to $58.60, whereas the simple moving average jumped by 6.38% in the last 200 days.
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On August 12, 2022, Wolfe Research started tracking Archer-Daniels-Midland Company (NYSE: ADM) recommending Outperform. A report published by BofA Securities on April 19, 2022, Downgraded its rating to ‘Neutral’ for ADM. JP Morgan Initiated an Neutral rating on January 12, 2022, and assigned a price target of $74. Stephens October 12, 2021d its ‘Overweight’ rating to ‘Equal-Weight’ for ADM, as published in its report on October 12, 2021. Jefferies’s report from July 21, 2021 suggests a price prediction of $55 for ADM shares, giving the stock a ‘Hold’ rating. Monness Crespi & Hardt also rated the stock as ‘Buy’.
Analysis of Archer-Daniels-Midland Company (ADM)
A return on investment can be expected regardless of ADM’s performance over the next quarter with the dividend set at $1.60 per share. Further, the quarter-over-quarter increase in sales is 19.00%, showing a positive trend in the upcoming months.
To gain a thorough understanding of Archer-Daniels-Midland Company’s future performance, several well-rounded types of analysis and research techniques can be used, with equity being among the most crucial. The goal here is to ensure that your current return on equity of 15.50% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.90, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
It is also very valuable to look at average volume as an indicator of volatility for a stock, and ADM is recording an average volume of 2.90M. On a monthly basis, the volatility of the stock is set at 2.76%, whereas on a weekly basis, it is put at 2.50%, with a gain of 0.95% over the past seven days. Furthermore, long-term investors anticipate a median target price of $96.00, showing growth from the present price of $86.07, which can serve as yet another indication of whether ADM is worth investing in or should be passed over.
How Do You Analyze Archer-Daniels-Midland Company Shares?
A leading company in the Farm Products sector, Archer-Daniels-Midland Company (ADM) is based in the USA. When comparing Archer-Daniels-Midland Company shares with other companies under Consumer Defensive, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 13.58, there is a growth in quarterly earnings of 73.20%.
The number of employees owning shares of the company should also be considered in addition to the fundamentals. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.30%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 81.10% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in ADM shares?
The recent increase in stakes in ADM appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in ADM has increased by 2.03% in the first quarter. The company now owns 60,168,724 shares of the stock, with a value of $5.29 billion, following the purchase of 1,198,582 additional shares during the last quarter. During the last quarter, the company dropped down 0 additional shares for a total stake of worth $4.11 billion, bringing number of shares owned by the company to 46,796,552.
During the first quarter, Capital Research & Management Co subtracted a -1,445,993 position in ADM. SSgA Funds Management, Inc. purchased an additional 0.8 million shares in the last quarter, increasing its holdings by 2.52%, now holding 32.41 million shares worth $2.85 billion. At the end of the first quarter, BlackRock Fund Advisors decreased its ADM holdings by -2.13% and now holds 26.45 million ADM shares valued at $2.32 billion with the lessened -0.58 million shares during the period. ADM shares are owned by institutional investors to the tune of 81.10% at present.