ADM - Archer-Daniels-Midland: This Dividend King Just Got Decimated Here's My Buying Strategy
2024-01-29 01:22:24 ET
Summary
- Archer-Daniels-Midland announces investigation into accounting practices, causing the stock to plunge 25% and hit a new 52-week low.
- Stock is extremely oversold with an RSI of 10, indicating potential for a significant rebound in the coming days.
- Despite the accounting issue, ADM is a stable food company with solid earnings estimates and a dividend growth stock.
Archer-Daniels-Midland (ADM) bills itself as one of the world's largest nutrition companies. It processes grains and crops that are used as key ingredients by many of the leading food companies. These ingredients are used to create foods for humans as well as animals. This business is headquartered in Chicago, IL but has operations all over the country as well. This company just announced some news that has clearly rattled some investors. On January 21, 2024, the company said that it was putting its CFO on administrative leave and that the company was investigating certain accounting practices in its nutrition segment and that it was cooperating with the SEC. The company operates in three segments which include ag services and oilseeds, carbohydrate solutions and nutrition. The nutrition segment of the business was the fastest growing part of the company, so it is important to the company overall. Based on this news, the stock plunged and has created a potential buying opportunity for investors with some patience. Let's take a closer look:...
Archer-Daniels-Midland: This Dividend King Just Got Decimated, Here's My Buying Strategy