Archer Daniels Midland Company (ADM) Shares Fall 5.3% After Disappointing Earnings Report


Shares of Archer Daniels Midland Company (NYSE:ADM) are down 5.33% this morning in the pre-market, after the company reported their fourth quarter numbers. The Illinois-based company reported a fourth-quarter profit of just $718 million ($1.19 per share), falling short of analysts’ expectations, even though beating last years numbers of $701 million ($1.08 per share).

Earnings, adjusted for one-time gains and costs, however, came in at just $0.61 per share, missing analysts’ expectations of $0.62. While the miss was just minor, investors seemingly feel quite strong about it, as shares have fallen to $33.55 per share (down $1.89 from yesterday’s closing price).

The stock increased 0.31% or $0.11 during the last trading session, hitting $35.44. About 1,800 shares traded hands. ADM has declined 28.46% since June 26, 2015 and is downtrending. It has underperformed the S&P500 by 20.76%.

From a total of 6 analysts covering Archer Daniels Midland Company (NYSE:ADM) stock, 2 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $54 while the lowest target price is $38. The mean of all analyst targets is $46.43 which is 31.01% above today’s ($35.44) stock price. Archer Daniels Midland Company was the topic of 9 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Standpoint Research upgraded shares on January 7 to a “Buy” rating. Citigroup downgraded ADM stock in a recent report from July 29 to a “Neutral” rating.

The institutional sentiment increased to 0.84 in Q2 2015. It’s up 0.02, from 0.82 in 2015Q2. The ratio increased, as 71 funds sold all their Archer Daniels Midland Company shares they owned while 263 reduced their positions. 44 funds bought stakes while 235 increased their total positions. Institutions now own 461.42 million shares which is 1.97% more than the previous share count of 452.52 million in 2015Q2.

Eclectica Asset Management Llp holds 8.59% of its total portfolio in Archer Daniels Midland Company, equating to 35,540 shares. Fairfield Bush & Co. owns 333,762 shares representing 6.08% of their total US portfolio. Moreover, Washington State Investment Board has 4.02% of their total portfolio invested in the company, equating to 61,189 shares. The Illinois-based State Farm Mutual Automobile Insurance Co has a total of 3.92% of their portfolio invested in the stock. Stevens First Principles Investment Advisors, a California-based fund reported 108,503 shares owned.

Since August 18, 2015, the stock had 0 insider purchases, and 2 insider sales for a total of $152,508 in net activity. Stott John P sold 1,000 shares worth $45,000.

Archer-Daniels-Midland Company is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities and makes protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. The company has a market cap of $21.08 billion. The Company’s divisions include Oilseeds Processing, Corn Processing, Agricultural Services and Wild Flavors and Specialty Ingredients. It has 12.33 P/E ratio. The Corn Processing segment is engaged in corn wet milling and dry milling activities.