Archer Daniels Midland Co. [ADM] Stock trading around $69.33 per share: What’s Next?

Archer Daniels Midland Co. [NYSE: ADM] traded at a low on 01/10/24, posting a -1.90 loss after which it closed the day’ session at $69.33. The company report on December 19, 2023 at 8:15 AM that FDL, a Portfolio Company of Highlander Partners, Enters into Definitive Agreement to Be Acquired By ADM.

Fuerst Day Lawson Limited (“FDL”), a portfolio company of Highlander Partners, L.P., announced today that the Company has entered into a definitive agreement to sell all of its outstanding shares to ADM (NYSE: ADM), a premier global human and animal nutrition company.  FDL, founded in 1884 and headquartered in London, is a leading ingredient solutions provider, specialized in the rapid development, formulation and manufacture of natural taste and nutrition solutions for applications across multiple product types and global end-markets.  It offers custom flavors, syrups and sauces, fruit preps, juices and juice blends, botanical extracts, bakery ingredients, energy and fortification blends and aroma chemicals, backed by deep applications development expertise.  FDL serves a global customer base with a presence in Europe, US, and Asia.  The transaction is subject to customary closing conditions.

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Founded in 1902, ADM today is one of the world’s largest agricultural supply chain managers and a premier human and animal nutrition provider, offering an unparalleled pantry of ingredients and solutions to meet customer needs for taste, texture, nutrition and functionality.  Over recent years, ADM has significantly expanded its flavors capabilities, starting with the acquisition of WILD Flavors in 2014.  Since then, ADM has added multiple new offerings to its flavors portfolio through acquisitions, including savory via Eatem Foods; citrus via Florida Chemical Company and Erich Ziegler Citrus; and vanilla via Rodelle.  The Company has also expanded its flavors capabilities globally with acquisitions like Flavor Infusion South America, organic investments like its Pinghu, China flavor production facility and the expansion of its Berlin flavor facility, and its growing network of innovation centers spanning Europe, Asia, Latin America, and North America.

The results of the trading session contributed to over 3479412 shares changing hands. Over the past one week, the price volatility of Archer Daniels Midland Co. stands at 2.00% while the volatility over the past one month is 2.07%.

The market cap for ADM stock reached $36.98 billion, with 547.00 million shares outstanding and 529.33 million shares in the current float. Compared to the average trading volume of 3.22M shares, ADM reached a trading volume of 3479412 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Archer Daniels Midland Co. [ADM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ADM shares is $91.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ADM stock is a recommendation set at 2.06. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Archer Daniels Midland Co. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on December 18, 2023.

The Average True Range (ATR) for Archer Daniels Midland Co. is set at 1.38, with the Price to Sales ratio for ADM stock in the period of the last 12 months amounting to 0.38. The Price to Book ratio for the last quarter was 1.47, with the Price to Cash per share for the same quarter was set at 9.45. Price to Free Cash Flow for ADM in the course of the last twelve months was 75.78 with Quick ratio for the last quarter at 1.07.

How has ADM stock performed recently?

Archer Daniels Midland Co. [ADM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.20. With this latest performance, ADM shares dropped by -5.99% in over the last four-week period, additionally sinking by -11.94% over the last 6 months – not to mention a drop of -18.79% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ADM stock in for the last two-week period is set at 35.29, with the RSI for the last a single of trading hit 29.65, and the three-weeks RSI is set at 38.50 for Archer Daniels Midland Co. [ADM]. The present Moving Average for the last 50 days of trading for this stock 73.00, while it was recorded at 70.72 for the last single week of trading, and 76.51 for the last 200 days.

Archer Daniels Midland Co. [ADM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Archer Daniels Midland Co. [ADM] shares currently have an operating margin of +3.62 and a Gross Margin at +6.90. Archer Daniels Midland Co.’s Net Margin is presently recorded at +4.27.

Return on Total Capital for ADM is now 10.77, given the latest momentum, and Return on Invested Capital for the company is 13.54. Return on Equity for this stock inclined to 18.56, with Return on Assets sitting at 7.49. When it comes to the capital structure of this company, Archer Daniels Midland Co. [ADM] has a Total Debt to Total Equity ratio set at 42.37. Additionally, ADM Total Debt to Total Capital is recorded at 29.76, with Total Debt to Total Assets ending up at 17.21. Long-Term Debt to Equity for the company is recorded at 35.21, with the Long-Term Debt to Total Capital now at 24.73.

Reflecting on the efficiency of the workforce at the company, Archer Daniels Midland Co. [ADM] managed to generate an average of $103,331 per employee. Receivables Turnover for the company is 15.23 with a Total Asset Turnover recorded at a value of 1.75.Archer Daniels Midland Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.07 and a Current Ratio set at 1.69.

Earnings analysis for Archer Daniels Midland Co. [ADM]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ADM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Archer Daniels Midland Co. go to -5.30%.

Insider trade positions for Archer Daniels Midland Co. [ADM]

The top three institutional holders of ADM stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in ADM stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in ADM stock with ownership which is approximately 5.8325%.