Archer Daniels Midland (NYSE:ADM) Shares Gap Down – Time to Sell?
by Mitch Edgeman · The Markets DailyShares of Archer Daniels Midland Company (NYSE:ADM – Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $68.08, but opened at $62.42. Archer Daniels Midland shares last traded at $65.4090, with a volume of 997,877 shares.
Key Stories Impacting Archer Daniels Midland
Here are the key news stories impacting Archer Daniels Midland this week:
- Positive Sentiment: Q4 EPS topped expectations at $0.87 (vs. ~ $0.83–$0.84 consensus), signaling resilient margins in a tough quarter. Read More.
- Positive Sentiment: The board raised the dividend by ~2%, supporting income-oriented investors and signaling confidence in cash returns. Read More.
- Neutral Sentiment: The company published its press release, slide deck and conference-call materials for the quarter for additional detail and management commentary. Read More.
- Negative Sentiment: Revenue missed expectations: Q4 sales of $18.56B vs. ~$21.03B consensus and were down ~13.7% year‑over‑year, reflecting weaker volumes/pricing across segments. Read More.
- Negative Sentiment: FY2026 EPS guidance was set to $3.60–$4.25, slightly below Street expectations (consensus ~4.23) and viewed as conservative; that guidance drove negative investor reaction. Read More.
- Negative Sentiment: Management cited challenges from U.S. biofuel policy delays and trade uncertainty as key near-term headwinds that trimmed profit and revenue this quarter. Read More.
- Negative Sentiment: Ongoing governance/accounting issues remain a risk to investor confidence after recent SEC-related developments and coverage about an accounting scandal. Read More.
Analyst Upgrades and Downgrades
ADM has been the subject of several analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Archer Daniels Midland in a research note on Wednesday, January 21st. UBS Group reissued a “buy” rating on shares of Archer Daniels Midland in a report on Monday, December 15th. JPMorgan Chase & Co. boosted their price target on Archer Daniels Midland from $59.00 to $60.00 and gave the company an “underweight” rating in a research note on Wednesday, January 21st. Morgan Stanley cut shares of Archer Daniels Midland from an “equal weight” rating to an “underweight” rating and dropped their target price for the stock from $57.00 to $50.00 in a report on Tuesday, December 16th. Finally, Zacks Research raised shares of Archer Daniels Midland from a “strong sell” rating to a “hold” rating in a research note on Friday, January 23rd. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price of $54.50.
Check Out Our Latest Stock Analysis on Archer Daniels Midland
Archer Daniels Midland Stock Down 2.0%
The company has a current ratio of 1.37, a quick ratio of 0.92 and a debt-to-equity ratio of 0.29. The stock’s fifty day simple moving average is $61.38 and its 200-day simple moving average is $60.38. The stock has a market capitalization of $32.07 billion, a PE ratio of 27.31, a P/E/G ratio of 4.61 and a beta of 0.70.
Archer Daniels Midland (NYSE:ADM – Get Free Report) last posted its earnings results on Tuesday, February 3rd. The company reported $0.87 EPS for the quarter, topping the consensus estimate of $0.84 by $0.03. The firm had revenue of $18.56 billion for the quarter, compared to analysts’ expectations of $21.03 billion. Archer Daniels Midland had a net margin of 1.43% and a return on equity of 8.01%. The company’s quarterly revenue was down 13.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.14 EPS. Archer Daniels Midland has set its FY 2026 guidance at 3.600-4.250 EPS. As a group, sell-side analysts forecast that Archer Daniels Midland Company will post 4.31 EPS for the current fiscal year.
Archer Daniels Midland Dividend Announcement
The business also recently declared a quarterly dividend, which was paid on Thursday, December 11th. Stockholders of record on Wednesday, November 19th were given a $0.51 dividend. The ex-dividend date was Wednesday, November 19th. This represents a $2.04 annualized dividend and a dividend yield of 3.1%. Archer Daniels Midland’s payout ratio is 83.27%.
Hedge Funds Weigh In On Archer Daniels Midland
A number of institutional investors have recently added to or reduced their stakes in ADM. Brookstone Capital Management increased its position in shares of Archer Daniels Midland by 4.5% in the fourth quarter. Brookstone Capital Management now owns 3,555 shares of the company’s stock worth $204,000 after purchasing an additional 154 shares during the last quarter. Checchi Capital Advisers LLC raised its position in shares of Archer Daniels Midland by 2.6% during the 4th quarter. Checchi Capital Advisers LLC now owns 6,436 shares of the company’s stock valued at $370,000 after buying an additional 161 shares in the last quarter. Tiemann Investment Advisors LLC lifted its holdings in shares of Archer Daniels Midland by 4.5% during the 3rd quarter. Tiemann Investment Advisors LLC now owns 4,085 shares of the company’s stock worth $244,000 after acquiring an additional 175 shares during the last quarter. Centennial Wealth Advisory LLC boosted its holdings in shares of Archer Daniels Midland by 1.5% in the 3rd quarter. Centennial Wealth Advisory LLC now owns 12,696 shares of the company’s stock worth $758,000 after purchasing an additional 184 shares in the last quarter. Finally, Joule Financial LLC boosted its stake in shares of Archer Daniels Midland by 4.6% in the 4th quarter. Joule Financial LLC now owns 4,318 shares of the company’s stock valued at $248,000 after purchasing an additional 190 shares in the last quarter. 78.28% of the stock is currently owned by institutional investors.
Archer Daniels Midland Company Profile
Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.
ADM’s business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.