The Analyst Landscape: 13 Takes On Archer-Daniels Midland

Throughout the last three months, 13 analysts have evaluated Archer-Daniels Midland ADM, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $66.15, a high estimate of $104.00, and a low estimate of $51.00. A decline of 28.49% from the prior average price target is evident in the current average.

Interpreting Analyst Ratings: A Closer Look

The standing of Archer-Daniels Midland among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Archer-Daniels Midland. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Archer-Daniels Midland compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Archer-Daniels Midland's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Archer-Daniels Midland's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Archer-Daniels Midland analyst ratings.

Delving into Archer-Daniels Midland's Background

Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients and is a large producer of corn-based sweeteners, starches, and ethanol.

Archer-Daniels Midland's Economic Impact: An Analysis

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Negative Revenue Trend: Examining Archer-Daniels Midland's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -12.11% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Archer-Daniels Midland's net margin is impressive, surpassing industry averages. With a net margin of 3.78%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Archer-Daniels Midland's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.27%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Archer-Daniels Midland's ROA stands out, surpassing industry averages. With an impressive ROA of 1.48%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Archer-Daniels Midland's debt-to-equity ratio is below the industry average at 0.38, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.