ADM stock: buy or sell?
September 20th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-15||Royal Bank of Canada||n/a||Sector Performer|
|2019-8-15||JPMorgan Chase & Co.||n/a||Underweight|
|2019-1-23||Credit Suisse Group||n/a||Neutral|
ADM stock analysis
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.
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 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 $49.30How 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-19||Buckingham Research||Lowers Target||$53.00||$51.00||-3.8%|
|2019-6-26||Stifel Nicolaus||Lowers Target||$56.00||$51.00||-8.9%|
|2019-1-23||Credit Suisse Group||Reiterates||$52.00||$46.00||-11.5%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|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 M||5.78%||$1,810 M2.8%||13.48%|
Quarterly financial resultsArcher-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%.
|2017-Q2||$14,940 M||-||$276 M1.8%||-|
|2017-Q3||$14,827 M||-0.76%||$192 M1.3%||-30.43%|
|2017-Q4||$16,070 M||8.38%||$788 M4.9%||310.42%|
|2018-Q1||$15,526 M||-3.39%||$393 M2.5%||-50.13%|
|2018-Q2||$17,068 M||9.93%||$566 M3.3%||44.02%|
|2018-Q3||$15,800 M||-7.43%||$536 M3.4%||-5.30%|
|2018-Q4||$15,947 M||0.93%||$315 M2.0%||-41.23%|
|2019-Q1||$15,304 M||-4.03%||$233 M1.5%||-26.03%|
Archer-Daniels-Midland ownershipWhen 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:
|Market cap||$22.8 B||$7.9 B||$2.0 B||$5.5 B||$873.0 M|
|Total shares||557.0 M||141.6 M||135.8 M||66.7 M||17.0 M|
|Float shares||554.3 M||136.6 M||114.1 M||66.2 M||13.3 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$40.79 - $41.24|
|Average true range||$0.80|
|50d mov avg||$39.19|
|100d mov avg||$39.80|
|200d mov avg||$40.84|
Archer-Daniels-Midland performanceTo 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:
Archer-Daniels-Midland competitorsOne 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.
- Bunge (BG)
- Cosan (CZZ)
- Ingredion (INGR)
- MGP Ingredients (MGPI)
- Seaboard (SEB)
- Treehouse Foods (THS)
- Tyson Foods (TSN)
Latest ADM stock news
- Seeking AlphaArcher-Daniels-Midland: People Gotta EatApril 17, 2019