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Opinions Gordon Reid
Archer Daniels Midland CompanyADMDON'T BUYAug 22, 2012
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentFor more than a century, the people of archer daniels midland company (nyse: adm) have transformed crops into products that serve the vital needs of a growing world. today, we’re one of the world’s largest agricultural processors and food ingredient providers, with more than 33,000 employees serving customers in more than 140 countries. with a global value chain that includes more than 460 crop procurement locations, 300 ingredient manufacturing facilities, 40 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, industrial and energy uses. learn more at www.adm.com. Social media mentions are up 200% in the past 24h.
Premium contentOur PAST TOP PICK with ADM has triggered its stop at $67. To remain disciplined, we recommend covering the position at this time. Along with our previous recommendation, this will result in a net investment loss of 13%.
Premium contentWe reiterate ADM, a global food processing company, as a TOP PICK. A new 5,000 b/d renewable diesel facility in N. Dakota was just opened with partner Marathon Petroleum. The company has been raising the dividend for the past 50 consecutive years. It trades at 11x earnings, 1.6x book and supports a 15% ROE. We continue to recommend a stop at $67, looking to achieve $92 -- upside potential of 24%. Yield 2.6%
(Analysts’ price target is $92.23)Premium contentThe large US agricultural player is investigating a joint venture with PSX to produce a low carbon jet fuel. A recent plant outage in Illinois will see processing of corn back up soon. It trades at 12x earnings, 1.7x book and supports a 16% ROE. We recommend a stop-loss at $67, looking to achieve $99 -- upside potential of 22%. Yield 2.1%
(Analysts’ price target is $99.08)Likes business due to hard assets.
Cyclical business - but demand growing.
High rate of return on capital.
Not expensive at current share price.
Good for long term investors.
Bill Harris, CFA
Cheap PE, likes agriculture and pays a 2.2% dividend. Still likes it. If you own this already, don't add more. Instead, buy Corteva in this space.
Joe Terranova
Joe Terranova(A Top Pick Mar 31/22, Down 1%) One of largest agriculture businesses in the world. World is still short on food products. Still owns shares in the company. Expecting better performance going forward. Fair valuation at current share price.
Jason Mann
Jason Mann
Too many moving parts for him. It is too sensitive to commodity prices. When agriculture prices skyrocket by the drought, it hurts companies like this.