BMO Capital took its Archer-Daniels Midland [ADM] rating to the equivalent of Market Perform from Outperform, and the price target to $56.0 from $51, in a research note dated 2021-01-11. That figure represents around a 6.5% premium from where the company’s shares closed on Friday. Other analysts also revised their coverage, with Cleveland Research’s analysts upgrading the shares from “a Neutral” rating to “a Buy” rating in a research note to investors issued in early November. Meanwhile, Monness Crespi & Hardt had raised its rating on ADM to “Buy” from the earlier “Neutral”, in a research note produced for clients October 26, 2020. In addition, there was an upgrade from JP Morgan on October 19, 2020. The rater changed ADM from “a Neutral” to “an Overweight”.
Is Archer-Daniels-Midland Company [NYSE:ADM] a Good Buy Right Now?
It should be noted that ADM technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 88% Buy in the last week and compares with 96% Buy in the past month. Data from Archer-Daniels-Midland Company’s Trend Spotter indicated that the signals were Weakening. The stock current average is 2.38 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 2.61 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 2.8 million shares.
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ADM Price Performance
On Wall Street, Archer-Daniels-Midland Company [NYSE:ADM] finished Friday’s session up 0.27% at $52.57. The stock went up to $53.11 at the same session while its lowest single day price was $51.70. In the last five days, it saw a rise of about 4.28%, Archer-Daniels-Midland Company shares gained by almost 4.28% since the beginning of the year. However, the share price has dropped to as low as -1.87% below its one year high. On 01/06/21, the company shares recorded $53.57, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $49.36. The company’s shares have inclined by 19.07% in the past year. The 50-day SMA achieved is $49.63 while the 200-day SMA is $43.58. Volume gained to 2.91 million from 2.86 million in the previous session.
Archer-Daniels-Midland Company [ADM] Valuation Measures
Notably, Archer-Daniels-Midland Company [ADM] stock can be classified as a good candidate in the listing of underestimated low-priced Farm Products companies to purchase soonest possible with the prevailing 12-month PE ratio of 18.12. The measure means the stock is exchanging at a discount as compared to the 19.90x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 0.47 PS value ratio is reported for the last one year of reported earnings. That is lower than the industry average of 1.06 which means ADM serve an attractive investment opportunity compared to its competitors.
ADM Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 51.81 level, and in case of violation of this particular level, it will cause more drop to 51.05 level. On the upper level, 53.87 is still the key resistance. The stock may increase to the subsequent resistance at 53.22. The Relative Strength Index (RSI) pinned on the 14-day chart is 64.97, implying a neutral technical stance while the MACD stands at 2.30, meaning price will increase in the next trading period. Percent R indicator moved to 20.49%, implying bullish price movement. Stochastic %K at 80.81% suggest selling the stock.
What is the short interest in Archer-Daniels-Midland Company?
Short interest in the Archer-Daniels-Midland Company stock has plunged, decreasing by -0.15 million shares to total 4.69 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 4.54 million, data from Yahoo Finance shows. The increase of 3.2% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 0.85% of the overall float for the stock.
Archer-Daniels-Midland Company’s Biggest Shareholders: Who Owns Archer-Daniels-Midland Company [ADM]?
Filings by State Farm Investment Management showed that the firm now holds a total of 51,214,613 shares or roughly 9.21% of the outstanding ADM shares. This means their shares have reduced by 0 from the 51,214,613 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, The Vanguard Group, Inc. updated stake is worth $2,519,327,339. Details in the latest 13F filings reveal that SSgA Funds Management, Inc. disposed off their -1.32% stake valued at $1,717,314,696 while BlackRock Fund Advisors cut theirs at $1,293,334,916. During the last quarter, SSgA Funds Management, Inc. liquidated -462,776 of its shares in Archer-Daniels-Midland Company while BlackRock Fund Advisors sold -298,867 shares. The Wellington Management Co. LLP’s holdings currently number 22,781,213 shares at $1197608367.41. According to the firm’s last 13F report, Capital Research & Management Co shares in the company at filing stood at 17,592,312 shares, roughly $875,569,368.
ADM Earnings Forecast For The Current Quarter
Archer-Daniels-Midland Company [ADM] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $16.62B and an earnings per share of $1.08 for Dec 2020. Looking further ahead, the company is expected to report revenue of $16.13B at an EPS of $0.79 for Mar 2021. The estimates represent upside of 3.80% and 5.56% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
ADM Earnings Estimates For The Current Year
For the financial year, Archer-Daniels-Midland Company [NYSE:ADM] is expected to bring in revenue of $63.15B. The returns are nearly $-1.51 billion lower than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 3.44, higher than that of FY19 by $0.2. Estimates put this year’s earnings growth at 6.20%, 5.50% for the next, and at an annual 4.50% over the next 5-year period. As for sales, forecasts are for a decrease of -2.30% in the current fiscal year and a further 3.80% over the following year.