ADM shares crash to a three-year low following three bad news

Shares of Archer-Daniels-Midland Co (NYSE: ADM) tanked about 16% to a three-year low this morning following a string of bad news.

ADM shares tank on probe news

The food processing company has placed Vikram Luthar – its chief financial officer on an administrative leave following an investigation related to accounting practices.

Ismael Roig will serve as the interim chief of finance at ADM, as per a press release on Sunday.

Archer-Daniels-Midland also lowered its guidance for the full year today. The U.S. multinational now expects to earn $6.90 a share in fiscal 2023.

Analysts, in comparison, were at a significantly higher $7.27 per share. Including the price action on Monday, ADM shares have lost more than 40% over the past two months.

Baird analyst downgrades ADM shares

The aforementioned accounting practices that are under investigation relate particularly to the nutrition segment that brought in $468 million in operating profit for ADM in the first nine months of 2023.

Archer-Daniels-Midland spent $3.0 billion on buying Wild Flavors in 2014 to expand its footprint in nutrition. It also bought FDL for an undisclosed amount to grow that business in December (find out more).

On Monday, the commodities trading corporation postponed the release of its fourth-quarter and full-year financial report as well.

Also today, Ben Kallo – a Baird analyst downgraded ADM shares to “neutral” and slashed his price target to $61 which nonetheless suggests a 5.0% upside on where the stock is trading at writing.