Archer-Daniels-Midland Company (NYSE: ADM) stock fell -0.86% on Friday to $86.00 against a previous-day closing price of $86.75. With 2.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.92 million shares. During the session, the Farm Products company that operates in wider Consumer Defensive sector, reached to the highest price of $88.62 whereas the lowest price it dropped to was $86.00. The 52-week range on ADM shows that it touched its highest point at $98.88 and its lowest point at $58.60 during that stretch. It currently has a 1-year price target of $96.00. With its current market cap of 48.49 billion, ADM has annualized dividend of $1.60 while the current yield stands at 1.86%. Beta for the stock currently stands at 0.78.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ADM was down-trending over the past week, with a drop of -0.20%, but this was down by -0.62% over a month. Three-month performance surged to 11.07% while six-month performance fell -1.78%. The stock gained 43.29% in the past year, while it has gained 27.24% so far this year. A look at the trailing 12-month EPS for ADM yields 6.34 with Next year EPS estimates of 6.16. For the next quarter, that number is 1.38. This implies an EPS growth rate of 52.50% for this year and -9.66% for next year. EPS is expected to grow by 9.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.20%.
Float and Shares Shorts:
At present, 566.00 million ADM shares are outstanding with a float of 557.80 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.69 million, which was 1.19% higher than short shares on Jun 14, 2022. In addition to Mr. Juan Ricardo Luciano as the firm’s Chairman, CEO & Pres, Mr. Ray Guy Young serves as its Vice-Chairman.
Through their ownership of 82.07% of ADM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.24% of ADM, in contrast to 34.13% held by mutual funds. Shares owned by individuals account for 11.69%. As the largest shareholder in ADM with 10.73% of the stake, The Vanguard Group, Inc. holds 60,168,724 shares worth 60,168,724. A second-largest stockholder of ADM, State Farm Investment Management, holds 46,796,552 shares, controlling over 8.35% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in ADM, holding 41,933,362 shares or 7.48% stake. With a 3.90% stake in ADM, the Washington Mutual Investors Fund is the largest stakeholder. A total of 21,847,024 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.97% of ADM stock, is the second-largest Mutual Fund holder. It holds 16,666,194 shares valued at 1.46 billion. American Balanced Fund holds 2.41% of the stake in ADM, owning 13,488,059 shares worth 1.19 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ADM since 16 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ADM analysts setting a high price target of $117.00 and a low target of $80.00, the average target price over the next 12 months is $98.50. Based on these targets, ADM could surge 36.05% to reach the target high and fall by -6.98% to reach the target low. Reaching the average price target will result in a growth of 14.53% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ADM will report FY 2022 earnings on 02/07/2023. Analysts have provided yearly estimates in a range of $7.05 being high and $6.56 being low. For ADM, this leads to a yearly average estimate of $6.83. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Archer-Daniels-Midland Company surprised analysts by $0.43 when it reported $2.15 EPS against a consensus estimate of $1.72. The surprise factor in the prior quarter was $0.49. Based on analyst estimates, the high estimate for the next quarter is $1.74 and the low estimate is $1.18. The average estimate for the next quarter is thus $1.37.
Summary of Insider Activity:
Insiders traded ADM stock several times over the past three months with 2 Buys and 3 Sells. In these transactions, 117,839 shares were bought while 121,106 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 1,978,260 while 1,615,515 shares were sold.