Asset Management One Co. Ltd., a Tokyo-based asset management company, has recently revealed in its Form 13F filing with the Securities and Exchange Commission that it has reduced its stake in Archer-Daniels-Midland Company (NYSE:ADM) by 5.4% during the fourth quarter. The firm reported that it had sold 12,710 shares during the said period, leaving them with 220,849 shares of the company’s stock worth $20,563,000 as of December 31st.
Archer-Daniels-Midland, commonly referred to as ADM, is one of the world’s largest agricultural processors and food ingredient providers. The Illinois-based corporation operates through four segments: Ag Services and Oilseeds, Carbohydrate Solutions, Nutrition, and Other. Its products include oils and protein meals derived from soybeans and other oilseeds; corn sweeteners and starches; flour mill feed and wheat; cocoa powders; and other food ingredients.
ADM recently released its earnings results for the fourth quarter ended January 26th. According to its report filed with the SEC on February 21st, the company posted an EPS of $1.93 for the period – surpassing analysts’ average forecast of $1.64 per share by $0.29. Its revenue during Q4 was also higher than expected at $26.23 billion compared to a consensus estimate of $25.37 billion.
The Ag Services and Oilseeds segment contributed significantly to ADM’s income during Q4 – generating $8 billion in revenue which is up 22% year-over-year driven by higher volumes across North America.
Carbohydrate Solutions generated $2 billion in revenue while Nutrition accounted for around $1 billion.
ADM is bullish about its outlook for this financial year despite global economic uncertainties from ongoing pandemic restrictions among various countries worldwide. Analysts forecast that ADM will post around an EPS of $6.72 for the current fiscal year.
Archer-Daniels-Midland is widely recognized globally as a leading player in food processing and agricultural commodities, leveraging on its diverse portfolio of products and established infrastructure to maintain a significant industry presence. With international trade restrictions easing up in certain markets, ADM is poised to benefit from higher demand and pricing for its products that are essential components in the global food supply chain.
Institutional Investors and Hedge Funds Show Interest in Archer-Daniels-Midland (ADM)
Archer-Daniels-Midland (ADM) has recently seen an influx of large investors buying and selling shares, including Selective Wealth Management Inc., Kistler Tiffany Companies LLC, Glassy Mountain Advisors Inc., Exchange Traded Concepts LLC, and RFP Financial Group LLC. In fact, 78.23% of the company’s stock is now owned by institutional investors and hedge funds.
Shares of ADM opened at $75.90 on April 26th with a market capitalization of $41.48 billion, a price-to-earnings ratio of 9.84, a PEG ratio of 1.88, and a beta of 0.80. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.85, and a current ratio of 1.46, with a one year low of $70.02 and a one year high of $98.28. Its 50 day moving average price is $79.69 and its 200 day moving average price is $86.51.
ADM’s business operations include the production of oilseeds, corn, wheat, cocoa, and other agricultural commodities through several segments: Ag Services and Oilseeds; Carbohydrate Solutions; Nutrition; and Other. The Ag Services and Oilseeds segment involves activities related to the origination, merchandising, transportation, storage of agricultural raw materials as well as crushing and further processing soybeans into vegetable oils.
The company also recently announced an increase in quarterly dividend payments from $0.40 to $0.45 per share for shareholders who held stocks on Thursday February 9th; it represented an annualized dividend yield of 2.37%. Archer-Daniels-Midland’s dividend payout ratio currently stands at 23%.
According to research analysts such as StockNews.com and BMO Capital Markets, ADM has a “buy” and an “outperform” rating respectively. Meanwhile, JPMorgan Chase & Co. and Morgan Stanley both gave the company a “neutral” rating. The consensus on Bloomberg.com is currently a “Moderate Buy” with a target price of $100.89.
ADM continues to attract investors given its focus on commodities produced from agriculture, which will always be in demand despite economic fluxes, as well as its consistent dividend payouts to shareholders.