Archer-Daniels-Midland Company (ADM) shares are trading at lower $50.50 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $54.58.
To add more color to this target, the company’s high over the last year is $52.05 and the low is $28.92. Over the last 52 weeks, ADM is up 18.13% while the S&P 500 is up 15.47%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ADM reported a profit of $1.04 billion. Archer-Daniels-Midland Company also saw revenues increase to $15.13 billion. In addition, ADM has free cash flow of -$2.07 billion as of 09-2020. The company’s EBITDA came in at $644.0 million which compares well with its peers.
ADM booked profit margins of 2.50%, its Return on Equity (ROE) is 8.30%, and its Return on Assets is 3.50%. All told, it is clear that, ADM needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ADM has a short ratio of 1.84 and outstanding shares of 561.00M.
ADM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.18 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.90. Archer-Daniels-Midland Company ADM also noted assets of $44.8 billion at the end of the last quarter. Investors should also keep an eye on sector updates as ADM has historically followed its peers on positive news.
All told, Archer-Daniels-Midland Company ADM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ADM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Archer-Daniels-Midland Company ADM is now commanding a market cap of 28.28B and a float of 554.22M. ADM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ADM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in ADM, either long or short, and we have not been compensated for this article.