Food products maker Archer Daniels Midland Company (ADM) on Monday caught a big downgrade from analysts at Citigroup.
The firm said it cut its rating on ADM from “Buy” to “Neutral” with a $32 price target. That target suggests an 8% upside to the stock’s Friday closing price of $29.52.
Citigroup noted the company could be vulnerable, as corn crops in the U.S. are in serious danger due to drought conditions. Grain prices have been rising as a result.
Archer Daniels Midland shares were mostly flat in premarket trading Monday.
The Bottom Line
Archer Daniels Midland currently offers a 2.37% dividend yield, based on Friday’s closing price of $29.52 and the company’s annualized dividend payout of 70 cents per share.
Archer Daniels Midland Company (ADM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.