Archer-Daniels-Midland Is Well-Positioned For A Bounce

Geoff Considine
5.7K Followers

Summary

  • ADM ran up early in 2021, in tandem with agricultural commodity prices and bond yields.
  • The shares have now fallen about 15% below the YTD high, as the market discounts inflation risk.
  • The Wall Street analyst consensus is bullish, with a 12-month price target that is 20% above the current level.
  • The market-implied outlook for ADM (derived from options prices) is somewhat bullish.
  • I am bullish overall.
Tractor spray fertilizer on green field.
moiseXVII/iStock via Getty Images

Archer-Daniels-Midland Company (NYSE:ADM) shares have been very active in 2021. After starting the year just below $50 (closing at $49.87 on January 4th), the shares climbed to a YTD high close of $68.73 on June 8th, a gain of almost 38%. Since then, the shares have been in

This article was written by

5.7K Followers
Geoff has worked in quantitative finance for more than twenty years. Before entering finance, Geoff was a research scientist for NASA. Geoff holds a PhD in Atmospheric Science from the University of Colorado - Boulder and a BS in Physics from Georgia Tech. Neither Geoff Considine nor Quantext (Geoff's company) are investment advisors. Nothing in any commentary here on Seeking Alpha or elsewhere shall be regarded as advice.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ADM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About ADM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ADM

Related Stocks

SymbolLast Price% Chg
ADM
--