Archer-Daniels-Midland Company (ADM), headquartered in Chicago, Illinois, is a global leader in the agricultural processing and food ingredients industry. With a market cap of $29.89 billion, ADM provides a vast array of products and services across categories such as nutrition, animal feed, and biofuels.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Archer-Daniels-Midland is a prime example of this, underscoring its significant scale, stability, and influence within the global agriculture and food industry. ADM continues to drive innovation and deliver value across global markets, focusing on sustainable solutions and food security.
ADM shares are trading 24.6% below their 52-week high of $80.14, which they hit on Sep. 20, 2023. The stock has gained marginally over the past three months, underperforming the Consumer Staples Select Sector SPDR Fund (XLP), which has gained 7.4% over the same time frame.
In the longer term, ADM is down 16.3% on a YTD basis, and the shares have declined 23.8% over the past 52 weeks. In comparison, the XLP has gained 15.8% in 2024 and rallied 17% over the past year.
To confirm its bearish trend, ADM has been trading below its 50-day moving average since early September and the 200-day moving average since mid-July.
Following the release of its Q2 earnings on Jul. 30, ADM’s stock declined by 1.3% and continued to trade in the red for the subsequent five sessions. The company reported an 11.7% year-over-year decline in revenues to $22.2 billion and a significant 50.9% drop in adjusted net income to $508 million.
ADM has lagged behind its rival, FMC Corporation (FMC), which marginally gained on a YTD basis.
Given the stock's recent weak price performance, analysts are cautious about ADM's prospects. The stock has a consensus rating of "Hold" from 11 analysts in coverage. The mean price target is $62.50, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
