ADM stock: buy or sell?

ADM stock price: $40.90 0.00% At close on September 20th, 2019

Updated on:
September 20th, 2019

3

Archer-Daniels-Midland closed today at $40.90 and remained steady a neutral 0.00%.

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients.

Should I buy ADM stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Archer-Daniels-Midland stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ADM will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Archer-Daniels-Midland stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 12 ratings published for ADM stock in the last 30 days.

Is ADM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-3Deutsche Bankn/aHold
2019-9-3Barclaysn/aOverweight
2019-8-20UBS Groupn/aNeutral
2019-8-15UBS Groupn/aSell
2019-8-15Royal Bank of Canadan/aSector Performer
2019-8-15JPMorgan Chase & Co.n/aUnderweight
2019-8-14Shore Capitaln/aSell
2019-8-14Peel Huntn/aHold
2019-7-19Buckingham Researchn/aBuy
2019-6-26Stifel Nicolausn/aBuy
2019-2-8Stifel NicolausHoldBuy
2019-1-23Credit Suisse Groupn/aNeutral

ADM stock analysis

Daily outlook

Shares of Archer-Daniels-Midland closed today at $40.90 and remained stable a neutral 0.00%.

Archer-Daniels-Midland closed today at $40.90 and remained constant a neutral 0.00%. Since price and SMA200d lines crossed up on September 11th, ADM climbed $0.61 (1.51%). From a daily outlook perspective, ADM is drawing an uptrend of rising tops and rising bottoms. Since its last top on Tuesday at $43.00, price slid and bounced up back from $40.78. Breaking down under $40.78 would cancel the current uptrend and it might slide further to test lower supports. Note that $43.00 might act as a resistance line. Trading the long side, we should wait to a new breakout over $43.00 to find the next buy point.

ADM stock chart (daily)

Weekly outlook

After boosting an astounding 7.01% in a week last week, Archer-Daniels-Midland closed this week at $40.90 and decreased a fateful -1.75%.

Since last week when ADM stock price broke up the SMA40w line, it gained $2.19 (5.66%). Far behind is the all-time high Archer-Daniels-Midland marked early October and since then the price is -18.75% below that top.

ADM stock chart (weekly)

ADM stock price history

ADM stock went public on March 17th, 1980 with a price of $1.121. Since then, ADM stock grew a 3,551.80%, with an average of 91.10% per year. If you had invested right after ADM's IPO a $1,000 in ADM stock in 1980, it would worth $35,518.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ADM stock historical price chart

ADM stock reached all-time highs on October with a price of $50.34.

ADM stock price target is $49.30

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 3 price targets for Archer-Daniels-Midland stock:
ADM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-19Buckingham ResearchLowers Target$53.00$51.00-3.8%
2019-6-26Stifel NicolausLowers Target$56.00$51.00-8.9%
2019-1-23Credit Suisse GroupReiterates$52.00$46.00-11.5%
(in average)$53.70$49.30-8.0%
The price forecast for Archer-Daniels-Midland stock is $49.30, moving in a range between $51.00 and $46.00. In average, analysts' outlook on ADM price target is negative, downsizing the target by a -8.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Archer-Daniels-Midland didn't meet the expectations of the analysts and reported an ugly EPS of $0.88 per share when experts were expecting $0.92.
ADM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.47n/a
2017-Q32017-10-310.560.45-19.6%
2017-Q42018-02-060.70.8217.1%
2018-Q12018-05-010.470.6844.7%
2018-Q22018-07-310.781.0230.8%
2018-Q32018-11-060.80.9215.0%
2018-Q42019-02-050.920.88-4.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Archer-Daniels-Midland annual turnover rose a decent 5.78% to $64,341.00 million USD from $60,828.00 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) stayed stable a 0.19% to 2.81%.

ADM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$89,690 M-$1,340 M1.5%-
2014$81,201 M-9.46%$2,248 M2.8%67.76%
2015$67,702 M-16.62%$1,849 M2.7%-17.75%
2016$62,346 M-7.91%$1,279 M2.1%-30.83%
2017$60,828 M-2.43%$1,595 M2.6%24.71%
2018$64,341 M5.78%$1,810 M2.8%13.48%

Quarterly financial results

Archer-Daniels-Midland posted $15,947.00 M in revenues for 2018-Q4, a 0.93% improvement compared to previous quarter. Reported quarter earnings marked $315.00 M with a profit margin of 1.98%. Profit margin declined a -1.42% compared to previous quarter when profit margin was 3.39%. When comparing turnover to same quarter last year, Archer-Daniels-Midland sales marked an unpleasant movement and remained stable a -0.77%.
ADM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$14,940 M-$276 M1.8%-
2017-Q3$14,827 M-0.76%$192 M1.3%-30.43%
2017-Q4$16,070 M8.38%$788 M4.9%310.42%
2018-Q1$15,526 M-3.39%$393 M2.5%-50.13%
2018-Q2$17,068 M9.93%$566 M3.3%44.02%
2018-Q3$15,800 M-7.43%$536 M3.4%-5.30%
2018-Q4$15,947 M0.93%$315 M2.0%-41.23%
2019-Q1$15,304 M-4.03%$233 M1.5%-26.03%

Archer-Daniels-Midland ownership

When you are planning to invest in shares of a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Archer-Daniels-Midland, 0.32% of all outstanding shares are owned by its staff.

Bearish positions for ADM stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

ADMBGCZZINGRMGPI
Market cap$22.8 B$7.9 B$2.0 B$5.5 B$873.0 M
Total shares557.0 M141.6 M135.8 M66.7 M17.0 M
Float shares554.3 M136.6 M114.1 M66.2 M13.3 M
  - Institutional holdings (%)80.4%84.3%64.7%91.0%114.4%
  - Insider holdings (%)0.3%0.6%13.2%1.3%21.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

ADM summary

Friday, September 20th, 2019
Open$40.93
Close$40.90
Day range$40.79 - $41.24
Previous close$40.90
Session gain0.00%
Average true range$0.80
50d mov avg$39.19
100d mov avg$39.80
200d mov avg$40.84
Daily patternlb03a
Weekly pattern lb06a

Archer-Daniels-Midland performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared Archer-Daniels-Midland against Bunge, Cosan, Ingredion, MGP Ingredients, Seaboard, Treehouse Foods and Tyson Foods in the following table:
Stock3m6m12m
ADMArcher-Daniels-Mi...0.49%-2.29%-15.93%
BGBunge-1.54%10.64%-12.72%
CZZCosan15.70%24.05%109.82%
INGRIngredion0.87%-11.52%-19.09%
MGPIMGP Ingredients-22.38%-33.35%-34.75%
SEBSeaboard3.27%0.82%65.37%
THSTreehouse Foods2.60%-7.97%8.45%
TSNTyson Foods11.66%33.57%47.15%

Archer-Daniels-Midland competitors

One check before investing in any stock is to review a list of its competitors, in this case for Archer-Daniels-Midland. We picked 7 companies as Archer-Daniels-Midland competitors as they are in the same industry or have similar market objectives.

Latest ADM stock news