Archer-Daniels-Midland (ADM-US) shares fell 12% in pre-market trading on Monday (22nd) as the company placed its Chief Financial Officer Vikram Luthar on administrative leave to face investigations and cut its full-year earnings. Profit expectations.
The global grain trader said Lutar would resign pending an investigation into certain accounting practices and procedures related to its nutrition reporting unit. And having appointed Ismael Roig as temporary treasurer.
The Chicago-based company said the investigation, launched at the request of the US Securities and Exchange Commission (SEC), will delay the release of its fourth-quarter earnings.
Goldman Sachs lowered its rating on the stock to “neutral” from “buy” and said the issues cast a shadow over ADM’s short- and medium-term investment prospects until investors can properly assess any potential impact on growth or earnings.
The brokerage lowered its price target on the stock to $67 from $90; while BMO lowered its target price to $66 from $80.
ADM lowered its forecast for adjusted earnings per share for the year ending December 2023 to $6.90 from the previous forecast of “more than $7 per share.”
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