Jim Cramer labels Archer Daniels Midland Company (ADM) as a 'Value Trap'. The company faces setbacks including the pausing of CO2 injections due to potential leaks and idling of its Iowa soy facility amidst a record US harvest. Brokerages have rated the company's stock with a general recommendation of 'Reduce'. Archer Daniels Midland faced a steeper fall than the broader market but had gains when the market dipped. The company has been under scrutiny after violations of US water laws were reported. ADM is currently under government investigation for its nutrition and flavor business, causing the CFO resignation. The company missed profit estimates due to a dip in US demand and lower crush margins. Despite the challenges, including a probe into ADM's ethanol trading desk, the company sees opportunities for margin improvement. Institutional shareholders have a significant (81%) stake in the company. Amidst the turbulence, ADM is executing strategic endeavors such as forming a joint venture for sustainable farming e-procurement.
Archer Daniels Midland Company ADM News Analytics from Mon, 22 Jan 2024 08:00:00 GMT to Sat, 05 Oct 2024 06:18:22 GMT -
Rating -7
- Innovation -3
- Information 5
- Rumor -4
