Insider Trading Report: Archer-Daniels Midland (ADM)

Juan Luciano, President and CEO of Archer-Daniels Midland (ADM), recently picked up 16,790 more shares. The buy increased his stake by over 1.35 percent, and came to a total price of just under $1 million.

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  • This is the second buy of the year, following a buy from a company senior vice president back in March. Otherwise, insiders have mostly been sellers over the past year, including a large cluster of sales last October, at far lower prices than were shares trade today.

    Overall, company insiders own just 0.5 percent of the company.

    Shares of the agricultural production giant have slightly beat the S&P 500 over the past year. While the company has a low profit margin, revenue and earnings have grown by over 40 percent and 50 percent respectively, and the stock trades at 13 times forward earnings, a considerable bargain in today’s market.

    Action to take: Investors may like shares here, given the 2.5 percent dividend yield in shares. The company has also been slowly growing its dividend over time as well.

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  • For traders, shares are starting to move higher again after selling off in June and July. The December $30 calls, last going for about $3.00, could deliver high-double-digit returns in the next few months, or even move into triple-digit territory if shares move to new all-time highs.

     

    Disclosure: The author of this article has a position in the company mentioned here, but does not intend to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.