ADM Stock Alert: Archer-Daniels-Midland Says Some Employees Face DOJ Subpoenas


  • Archer-Daniels-Midland (ADM) altered its financial results for the past five years but says the changes were insignificant. 
  • A number of employees and former employees have now received subpoenas from the U.S. Department of Justice.
  • The company also recently authorized an additional $2 billion buyback of ADM stock.
ADM stock - ADM Stock Alert: Archer-Daniels-Midland Says Some Employees Face DOJ Subpoenas

Source: Katherine Welles /

Archer-Daniels-Midland (NYSE:ADM) stock is in focus today after the firm reported that it slightly altered its financial results between 2018 and 2023.

The agricultural products company noted that a number of its employees have now been subpoenaed by the U.S. Department of Justice (DOJ), which is investigating the firm. The DOJ probe into Archer-Daniels-Midland’s accounting standards is also reportedly progressing at a rapid pace.

ADM Stock and Financial Irregularities

So, what exactly was irregular about the company’s financial results?

According to reports, the prices that Archer-Daniels-Midland’s divisions charged each other for some products did not reflect “market value,” per Reuters. As a result, the firm has corrected “certain segment-specific financial information” for the years between 2018 and 2023.

On a positive note, ADM did report that these corrections would not significantly affect its overall data. Indeed, ADM says the alterations will not impact its “consolidated balance sheets and statements of earnings, comprehensive income (loss), or cash flows.”

Looking forward, Archer-Daniels-Midland is changing its financial reporting standards to make its results more accurate. The company has suspended its Chief Financial Officer on “immediate administrative leave” as well.

Still, a number of ADM’s current and former employees have been served with “grand jury subpoenas” by the DOJ and the company is cooperating with the Department of Justice. Meanwhile, according to Reuters, the subpoenas suggest that the investigation of the firm’s financial results is accelerating quickly.

Fourth-Quarter Results and Buyback News

This morning, Archer-Daniels-Midland noted that its fourth-quarter sales tumbled 11% versus the same period a year earlier. Meanwhile, its adjusted EPS sank 30% year-over-year (YOY). ADM also noted that its margins dropped.

However, the company did report that its board has authorized an additional $2 billion of share buybacks. This falls under the firm’s “existing 200 million share repurchase program that runs through 2024.”

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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