ADM Settles SEC Investigation for $40 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Settlement Agreement: ADM has entered into a settlement with the SEC, agreeing to pay $40 million to resolve an investigation into its intersegment sales reporting without admitting wrongdoing, which may help restore investor confidence.
- Investigation Closure: The DOJ has closed its investigation into ADM with no further action, indicating a reduction in regulatory pressure that could facilitate future business growth.
- Internal Control Enhancements: Following the investigations, ADM implemented significant changes to its financial leadership and controls, aiming to improve the accuracy of financial reporting and enhance transparency and stakeholder trust.
- Financial Reporting Corrections: The company corrected prior financial reports in March and November 2024, which, while not affecting its consolidated balance sheet or cash flows, demonstrate ADM's commitment to compliance and future operational integrity.
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.
