Archer-Daniels-Midland Company (ADM): Technicals Say You should Hold

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Archer-Daniels-Midland Company (NYSE:ADM) saw an upside of 1.68% to close Tuesday at $85.77 after adding $1.42 on the day. The 5-day average trading volume is 4,722,760 shares of the company’s common stock. It has gained $88.31 in the past week and touched a new high 1 time within the past 5 days. An average of 3,251,430 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,914,234.

ADM’s 1-month performance is -9.02% or -$8.85 on its low of $83.10 reached on 01/24/23. The company’s shares have touched a 52-week low of $65.64 and high of $98.88, with the stock’s rally to the 52-week high happening on 01/03/23. YTD, ADM has lost -7.63% or -$7.08 and has reached a new high 1 time. However, the current price is down -13.26% from the 52-week high price.

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Insider Transactions

ADM stock investors last saw insider trading activity on Dec 13.FINDLAY D CAMERON (Senior Vice President) most recently sold 26,197 shares at $93.52 per share on Dec 13. This transaction cost the insider $2,449,907. Senior Vice President, FINDLAY D CAMERON, sold 26,198 shares at a price of $92.64 on Dec 12. Then, on Nov 29, Senior Vice President FINDLAY D CAMERON sold 26,198 shares at a price of $96.62 per share. This transaction amounted to $2,531,333.

Valuation Metrics

ADM stock has a beta of 0.83. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.48 while the price-to-book (PB) in the most recent quarter is 2.00, with the price to cash flow ratio at 24.84.

Archer-Daniels-Midland Company’s quick ratio for the period ended September 29 was 0.90, with the current ratio over the same period at 1.50. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.32, while the total debt to equity was 0.36.. In terms of profitability, the gross margin trailing 12 months is 7.60%. The firm’s gross profit as reported stood at $5.99 billion against revenue of $85.25 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 48.98% to $1.03 billion, while revenue of $1.24 billion was -19.88% off the previous quarter. Analysts expected ADM to announce $1.44 per share in earnings in its latest quarter, but it posted $1.86, representing a 29.20% surprise. EBITDA for the quarter stood at more than $1.25 billion. ADM stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 34.27 billion, with total debt at $9.74 billion. Shareholders hold equity totaling $549.33 million.

Let’s look briefly at Archer-Daniels-Midland Company (ADM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 41.44% to suggest the stock is trending Neutral, with historical volatility in this time period at 22.86%.

The stock’s 5-day moving average is $85.04, reflecting a -2.63% or -$2.32 change from its current price. ADM is currently trading -8.26% above its 20-day SMA, -2.06% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -7.83% and SMA200 by-7.61%.

Stochastic %K and %D was 22.15% and 16.44% and the average true range (ATR) pointed at 2.01. The RSI (14) points at 40.54%, while the 14-day stochastic is at 42.31% with the period’s ATR at 2.04. The stock’s 9-day MACD Oscillator is pointing at -1.24 and -1.04 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Archer-Daniels-Midland Company (NYSE: ADM), UBS launched coverage with a Buy rating. Analysts offering their rating for ADM stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate ADM as a “sell,”, while 8 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 2 rates the stock as overweight while 6 have offered a “buy” rating.

What is ADM’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $88.00 and a high of $117.00, with their median price target at $99.00. Looking at these predictions, the average price target given by analysts is for Archer-Daniels-Midland Company (ADM) stock is $101.69.

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