Two Insiders Are Betting On Archer Daniels Midland Company (ADM)

On Feb. 5th, two insiders at Archer Daniels Midland Company (NYSE:ADM) acquired stock from the company. Ray Young, Chief Financial Officer, acquired 3,000 shares of Common Stock at a price of $38.569 per share. Mr. Young now owns about 120,303 shares, valued at more than $4.6 million.

On the same date, Juan Luciano, Executive Vice President and Chief Operating Officer at Archer Daniels Midland Company (NYSE:ADM), purchased 2,612 shares of Common Stock; 2,500 for a price of $38.196 per share, and another 112, for $38.197 each. He now holds 321,727 shares, worth more than $12.4 million.

Archer Daniels Midland Company (NYSE:ADM)

Archer Daniels Midland Company (NYSE:ADM) is a large-cap processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities; and a manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. Its stock trades at 26.8 times the company’s earnings, a slight premium in relation to its peers’ mean of 25.1x. However, most analysts tend to recommend holding on this stock, mainly on account of its below-average long-term EPS growth projections and margins. On the other hand, the stock pays out a generous dividend yield, projected at 2.5% of the current stock price and boasts returns on equity of 7.5% (above the industry average of 6.2%).

Both purchases follow the company’s report of its Q4 results, featuring estimate-beating EPS, mainly on the back of lower-than-expected corn costs.

Furthermore, it is not only insiders that are betting on Archer Daniels Midland Company (NYSE:ADM). Ken Griffin’s Citadel Investment Group –the largest “hedgie” bull- last declared (for Q3 2013) a considerable increase in its position in the stock (+59%). The fund now holds more than 5 million shares. However, this position only comprised 0.28% of Griffin’s Q3 equity portfolio.

In addition, several major hedge funds like Cliff Asness’ Aqr Capital Management, and Peter Rathjens, Bruce Clarke and John Campbel‘s Arrowstreet Capital, not only hold stakes in Daniels Midland Company (NYSE:ADM) worth several million dollars, but have also upped these bets substantially over Q3.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Mathew Martoma Insider Trading Conviction: Guilty

David Einhorn and Insiders Are Bullish About These Stocks

5 Stocks With Multiple Insider Purchases

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!