Shares of the food processing and commodities trading company Archer-Daniels-Midland (NYSE:ADM) closed over 24% lower on Monday. The significant decline in ADM stock came after the company lowered its 2023 earnings guidance, delayed the release of its Q4 earnings, and put its CFO, Vikram Luthar, on administrative leave amid an SEC probe. As ADM is under pressure, it’s the right time to delve into its ownership structure.
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Now, according to TipRanks’ ownership page, public companies and individual investors own 41.12% of ADM. They are followed by other institutional investors, mutual funds, and insiders at 25.10%, 23.67%, and 10.11%, respectively.
Digging Deeper into ADM’s Ownership Structure
Looking closely at institutions (Mutual Funds and Other Institutional Investors), Vanguard owns a 9.88% stake in Archer-Daniels-Midland stock. Next up is Vanguard Index Funds, which holds an 8.06% stake in the company.
Among the institutions, the hedge fund Confidence Signal is Very Negative on ADM stock based on the activity of nine hedge funds. Notably, Hedge Funds decreased their holdings by 144.9K shares in the last quarter.
While the hedge fund confidence signal is Very Negative, individual investors have a Positive view of the company, given that in the last 30 days, the number of portfolios (tracked by TipRanks) holding the stock increased by 2.6%. Overall, among the 711,565 portfolios monitored by TipRanks, 0.4% have invested in Archer-Daniels-Midland stock.
Is ADM a Good Stock to Buy Now?
ADM stock is down over 37% in one year. Despite the notable correction in its share price, Wall Street analysts remain sidelined on ADM’s prospects. It has two Buy, eight Hold, and one Sell recommendations for a Hold consensus rating.
Analysts’ average price target of $74.09 implies an upside potential of 43.34% over the next 12 months.
Conclusion
TipRanks’ Ownership tool provides a detailed breakdown of Archer-Daniels-Midland’s ownership structure by category, empowering investors to make well-informed decisions when considering investments.
