Archer-Daniels-Midland Company (NYSE:ADM) has a beta of 0.91, a 12-month trailing P/E ratio of 16.83, and a growth ratio of 2.24. The stock’s Relative Strength Index (RSI) is 32.82, with weekly volatility at 2.16% and ATR at 1.20. The ADM stock’s 52-week price range has touched low of $37.54 and a $69.30 high. Its shares traded higher over the last trading session, gaining 1.95% on 06/21/21. The shares fell to a low of $61.02 before closing at $61.84. Intraday shares traded counted 2.5 million, which was 5.86% higher than its 30-day average trading volume of 2.66M. ADM’s previous close was $60.66 while the outstanding shares total 563.00M.
Investors have identified the Farm Products company Archer-Daniels-Midland Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $35.27 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Archer-Daniels-Midland Company (ADM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 29.28 billion total, with 18.51 billion as their total liabilities.
ADM were able to record 124.0 million as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.21 billion. In cash movements, the company had a total of 298.0 million as operating cash flow.
Potential earnings growth for Archer-Daniels-Midland Company (ADM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, Archer-Daniels-Midland Company recorded a total of 18.89 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 20.76% coming in sequential stages and their sales for the 08/03/2021 quarter increasing by 4.84%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 17.34 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.55 billion. This allows shareholders to hold on to 563.00M with the recently reported earning now reading 1.23 cents per share. This is a figure that compared to analyst’s prediction for their 08/03/2021 (1.39 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.36 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ADM sounds very interesting.
Is the stock of ADM attractive?
In related news, Senior Vice President, Weber Jennifer L bought 5,095 shares of the company’s stock in a transaction that recorded on Mar 12. The purchase was performed at an average price of 58.40, for a total value of 297,551. As the purchase deal closes, the Senior Vice President, Taets Joseph D. now sold 43,711 shares of the company’s stock, valued at 2,421,726. Also, Senior Vice President, Taets Joseph D. sold 30,000 shares of the company’s stock in a deal that was recorded on Nov 16. The shares were cost at an average price of 50.15 per share, with a total market value of 1,504,500. Following this completion of disposal, the Group VP, Finance & Controller, Stott John P now holds 15,000 shares of the company’s stock, valued at 751,275. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
9 out of 14 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Archer-Daniels-Midland Company. 0 analysts has assigned a Sell rating on the ADM stock. The 12-month mean consensus price target for the company’s shares has been set at $70.08.