ADM Agrees to Pay $40M to Settle SEC Charges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Settlement Penalty: Archer Daniels Midland (ADM) has agreed to pay a $40 million civil penalty to settle SEC charges against the company and three former executives for allegedly inflating company performance, which negatively impacted investor confidence.
- Executive Accountability: Former executives Vince Macciocchi and Ray Young agreed to pay approximately $530,000 and $650,000 respectively in penalties and interest, highlighting deficiencies in corporate governance and executive accountability.
- Internal Investigation: ADM launched an internal investigation during 2021 and 2022, discovering that its nutrition segment fell short of financial targets, and voluntarily reported its findings to the SEC, demonstrating efforts towards transparency and compliance.
- Improved Controls: The company has implemented new internal accounting controls and revised policies and procedures to prevent similar incidents in the future, aiming to restore investor trust and enhance corporate governance.
Analyst Views on ADM
Wall Street analysts forecast ADM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADM is 56.80 USD with a low forecast of 50.00 USD and a high forecast of 61.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
0 Buy
2 Hold
3 Sell
Moderate Sell
Current: 67.370
Low
50.00
Averages
56.80
High
61.00
Current: 67.370
Low
50.00
Averages
56.80
High
61.00
About ADM
Archer-Daniels-Midland Company is a global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. It is a human and animal nutrition provider. Its Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds, such as soybeans and soft seeds into vegetable oils and protein meals. Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. Nutrition segment is engaged in the creation, manufacturing, sale, and distribution of a wide array of ingredients and solutions, including plant-based proteins, flavors and colors derived from nature, flavor systems, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients and systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
