Fintel reports that on June 22, 2023, Roth MKM initiated coverage of Archer Daniels Midland (NYSE:ADM) with a Buy recommendation.

Analyst Price Forecast Suggests 35.04% Upside

As of June 1, 2023, the average one-year price target for Archer Daniels Midland is 98.68. The forecasts range from a low of 82.82 to a high of $122.85. The average price target represents an increase of 35.04% from its latest reported closing price of 73.07.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Archer Daniels Midland is 101,860MM, a decrease of 0.12%. The projected annual non-GAAP EPS is 6.73.

Archer Daniels Midland Declares $0.45 Dividend

On May 4, 2023 the company declared a regular quarterly dividend of $0.45 per share ($1.80 annualized). Shareholders of record as of May 17, 2023 received the payment on June 7, 2023. Previously, the company paid $0.45 per share.

At the current share price of $73.07 / share, the stock’s dividend yield is 2.46%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.75%, the lowest has been 1.65%, and the highest has been 4.91%. The standard deviation of yields is 0.65 (n=236).

The current dividend yield is 0.44 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.22. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2037 funds or institutions reporting positions in Archer Daniels Midland. This is a decrease of 53 owner(s) or 2.54% in the last quarter. Average portfolio weight of all funds dedicated to ADM is 0.32%, a decrease of 20.69%. Total shares owned by institutions decreased in the last three months by 4.66% to 502,796K shares. The put/call ratio of ADM is 1.17, indicating a bearish outlook.

What are Other Shareholders Doing?

State Farm Mutual Automobile Insurance holds 46,797K shares representing 8.59% ownership of the company. No change in the last quarter.

AWSHX – WASHINGTON MUTUAL INVESTORS FUND holds 22,562K shares representing 4.14% ownership of the company. In it’s prior filing, the firm reported owning 25,016K shares, representing a decrease of 10.88%. The firm decreased its portfolio allocation in ADM by 25.99% over the last quarter.

Capital World Investors holds 18,873K shares representing 3.47% ownership of the company. In it’s prior filing, the firm reported owning 40,421K shares, representing a decrease of 114.17%. The firm decreased its portfolio allocation in ADM by 61.16% over the last quarter.

Capital International Investors holds 17,101K shares representing 3.14% ownership of the company. In it’s prior filing, the firm reported owning 16,885K shares, representing an increase of 1.27%. The firm decreased its portfolio allocation in ADM by 16.72% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 16,965K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 16,698K shares, representing an increase of 1.58%. The firm decreased its portfolio allocation in ADM by 19.51% over the last quarter.

Archer Daniels Midland Background Information
(This description is provided by the company.)

ADM unlocks the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, ADM gives customers an edge in solving the nutritional challenges of today and tomorrow. ADM is a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Its breadth, depth, insights, facilities and logistical expertise give ADM unparalleled capabilities to meet needs for food, beverages, health and wellness, and more.

Key filings for this company:

• UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-K

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.