It’s still a bull thesis, just subverted: Archer Daniels Midland Co (ADM)

At the time of writing, Archer Daniels Midland Co [ADM] stock is trading at $52.51, up 1.23%. An important factor to consider is whether the stock is rising or falling in short-term value. The ADM shares have gain 0.04% over the last week, with a monthly amount drifted -9.92%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Archer Daniels Midland Co [NYSE: ADM] stock has seen the most recent analyst activity on February 01, 2024, when Citigroup initiated its Neutral rating and assigned the stock a price target of $57. Previously, Argus downgraded its rating to Hold on January 23, 2024. On January 22, 2024, downgrade downgraded it’s rating to Hold and revised its price target to $56 on the stock. ROTH MKM downgraded its rating to a Neutral and decreased its price target to $66 on January 22, 2024. Robert W. Baird downgraded its rating to a Neutral and reduced its price target to $61 on January 22, 2024. Goldman downgraded its rating to Neutral for this stock on January 22, 2024, and downed its price target to $67. In a note dated January 22, 2024, Barclays downgraded an Underweight rating on this stock but restated the target price of $60.

For the past year, the stock price of Archer Daniels Midland Co fluctuated between $48.92 and $77.35. Currently, Wall Street analysts expect the stock to reach $70.6 within the next 12 months. Archer Daniels Midland Co [NYSE: ADM] shares were valued at $52.51 at the most recent close of the market. An investor can expect a potential return of 34.45% based on the average ADM price forecast.

Analyzing the ADM fundamentals

According to Archer Daniels Midland Co [NYSE:ADM], the company’s sales were 88.76B for trailing twelve months, which represents an -11.80% plunge. Gross Profit Margin for this corporation currently stands at 0.07% with Operating Profit Margin at 0.03%, Pretax Profit Margin comes in at 0.04%, and Net Profit Margin reading is 0.03%. To continue investigating profitability, this company’s Return on Assets is posted at 0.05, Equity is 0.11 and Total Capital is 0.07. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.49.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 51.96 points at the first support level, and at 51.42 for the second support level. However, for the 1st resistance point, the stock is sitting at 52.92, and for the 2nd resistance point, it is at 53.34.

Ratios To Look Out For

It is important to note that Archer Daniels Midland Co [NYSE:ADM] has a current ratio of 1.44. On the other hand, the Quick Ratio is 0.88, and the Cash Ratio is 0.04. Considering the valuation of this stock, the price to sales ratio is 0.28, the price to book ratio is 1.13 and price to earnings (TTM) ratio is 10.53.

Transactions by insiders

Recent insider trading involved LUCIANO JUAN R, President & CEO, that happened on Sep 03 ’24 when 0.17 million shares were sold. President & CEO, LUCIANO JUAN R completed a deal on Aug 30 ’24 to sell 45471.0 shares. Meanwhile, Officer LUCIANO JUAN R bought 0.17 million shares on Sep 03 ’24.

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