Archer-Daniels-Midland Company (NYSE:ADM) Short Interest Up 13.0% in January

Archer-Daniels-Midland Company (NYSE:ADM) was the target of a significant growth in short interest during the month of January. As of January 15th, there was short interest totalling 11,250,000 shares, a growth of 13.0% from the December 31st total of 9,960,000 shares. Based on an average daily trading volume, of 2,970,000 shares, the days-to-cover ratio is presently 3.8 days. Currently, 2.4% of the company’s stock are short sold.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Morgan Stanley cut their target price on Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating on the stock in a research note on Tuesday, November 12th. BMO Capital Markets reduced their price objective on shares of Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating for the company in a research note on Wednesday, December 4th. Citigroup upped their target price on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 4th. Bank of America downgraded shares of Archer-Daniels-Midland from a “neutral” rating to an “underperform” rating and reduced their price target for the company from $63.00 to $54.00 in a research report on Tuesday, January 14th. Finally, Barclays lowered their price objective on Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 21st. Two investment analysts have rated the stock with a sell rating and seven have given a hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $56.89.

Archer-Daniels-Midland Stock Performance

Shares of NYSE:ADM traded down $1.23 during midday trading on Monday, hitting $50.01. The company had a trading volume of 4,485,460 shares, compared to its average volume of 3,136,781. Archer-Daniels-Midland has a 12-month low of $48.40 and a 12-month high of $66.08. The company has a fifty day moving average of $51.42 and a two-hundred day moving average of $55.91. The company has a market cap of $23.93 billion, a price-to-earnings ratio of 14.29 and a beta of 0.72. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.40 and a quick ratio of 0.84.

Archer-Daniels-Midland Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st were given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 4.00%. The ex-dividend date was Thursday, November 21st. Archer-Daniels-Midland’s payout ratio is 57.14%.

Archer-Daniels-Midland declared that its Board of Directors has initiated a share buyback plan on Wednesday, December 11th that authorizes the company to buyback 100,000,000 shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Archer-Daniels-Midland

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Lake Street Advisors Group LLC increased its stake in Archer-Daniels-Midland by 4.8% in the 3rd quarter. Lake Street Advisors Group LLC now owns 4,015 shares of the company’s stock worth $240,000 after buying an additional 183 shares in the last quarter. OLD National Bancorp IN grew its holdings in Archer-Daniels-Midland by 0.9% during the 3rd quarter. OLD National Bancorp IN now owns 20,648 shares of the company’s stock valued at $1,234,000 after buying an additional 189 shares in the last quarter. UMB Bank n.a. boosted its position in shares of Archer-Daniels-Midland by 3.4% during the third quarter. UMB Bank n.a. now owns 5,830 shares of the company’s stock worth $348,000 after acquiring an additional 194 shares during the last quarter. NorthCrest Asset Manangement LLC increased its holdings in Archer-Daniels-Midland by 4.1% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 5,125 shares of the company’s stock valued at $306,000 after acquiring an additional 201 shares during the last quarter. Finally, West Financial Advisors LLC lifted its stake in Archer-Daniels-Midland by 10.1% in the 4th quarter. West Financial Advisors LLC now owns 2,201 shares of the company’s stock worth $111,000 after purchasing an additional 201 shares in the last quarter. 78.28% of the stock is owned by hedge funds and other institutional investors.

About Archer-Daniels-Midland

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.