Archer Daniels Midland Co. (ADM) is back in the headlines for all the wrong reasons. In the 1990s, the agricultural giant was implicated in a price-fixing conspiracy that became the basis for the book—and later Matt Damon movie—The Informant!. Now the company’s latest controversy centers around accounting in the company’s nutrition unit. After an investigation lasting almost three years, ADM has reached a $40 million civil penalty settlement with the SEC, without admitting or denying wrongdoing, over ci ...

Bloomberg Archer-Daniels-Midland Co. agreed to pay $40 million to settle a two-year federal investigation into the crop giant’s accounting practices that rocked its share price and eroded faith in the company’s transparency. The civil penalty levied by the US Securities and Exchange Commission settles allegations that ADM and former executives engaged in accounting and disclosure fraud when they sought to boost the bottom line of ADM’s flailing nutrition business unit to meet the Chicago-based company’s ...

The settlement, along with the company’s efforts to improve and remediate its reporting processes, pave the way for ADM to move out from under the accounting cloud, according to Seth Goldstein, a Morningstar analyst. “To me, once you’re in the phase of settling with regulators that means the light’s at the end of the tunnel and you’re ready to move forward,” Goldstein said in an interview.The suit landed on the same day that the SEC announced that the Chicago-based grain trading giant agreed to pay a $40 mi ...

Core Viewpoint - Archer-Daniels-Midland Company (ADM) will pay a $40 million civil penalty due to charges from the U.S. Securities and Exchange Commission (SEC) regarding inflated performance in its "Nutrition" business segment, concluding years of investigations into accounting issues [1][2]. Group 1: Investigation and Charges - The resolution of the SEC charges follows extensive government investigations that led to ADM revising its financial reports twice, resulting in shareholder litigation and share losses [2]. - The charges also involve former executives Vince Macciocchi and Ray Young, highlighting the accountability of leadership in the accounting irregularities [2]. - Federal prosecutors initiated a probe in early 2024 into the accounting issues related to the "Nutrition" unit, which had been a significant focus for the company [4]. Group 2: Financial Impact and Company Response - The investigation revealed that ADM inaccurately reported financial results for the "Nutrition" unit, which was launched in 2018 to develop high-value specialty ingredients [5]. - Following the news of accounting irregularities, ADM's shares experienced a decline, putting pressure on top executives, including CEO Juan Luciano, whose compensation was linked to the Nutrition unit's growth [5]. - In response to the investigations, the company has implemented extensive internal controls and remedial measures, including new accounting policies and testing the effectiveness of these controls [7]. Group 3: Market Reaction - Following the announcement of the settlement, ADM shares rose by 0.34% in after-hours trading, indicating a positive market reaction to the resolution of the legal issues [3].

Washington, D.C.--(Newsfile Corp. - January 27, 2026) - The Securities and Exchange Commission today filed settled charges against Archer-Daniels-Midland Company (ADM) and its former executives, Vince Macciocchi and Ray Young, and a litigated action against its former executive Vikram Luthar, for materially inflating the performance of a key ADM business segment, Nutrition, which ADM touted to investors as an important driver of the company’s overall growth.The SEC’s complaint against Luthar alleges that h ...

Core Viewpoint - ADM has resolved investigations by the SEC and DOJ regarding prior reporting on intersegment sales, entering a settlement with the SEC for $40 million without admitting wrongdoing [1] Group 1: Investigations and Settlements - ADM has entered into a settlement agreement with the SEC to resolve its investigation into prior reporting on intersegment sales, agreeing to pay $40 million [1] - The DOJ has closed its investigation of ADM with no further action required [1] - The investigations by the SEC and DOJ have now concluded, allowing ADM to move forward [1] Group 2: Internal Actions and Financial Reporting - Following the investigations, ADM conducted an internal investigation led by outside counsel and reported findings to the SEC [1] - In March 2024, ADM corrected prior period errors and restated its 2023 Form 10-K and Forms 10-Q for the first and second quarters of 2024 to address historical segment reporting errors [1] - The transactions involved in the SEC resolution did not affect ADM's consolidated balance sheet, earnings, or cash flows for the periods presented in the restated filings [1] Group 3: Leadership and Future Commitment - ADM has made significant changes to its financial leadership team and financial controls to enhance internal processes [1] - The Chair of the Board, President, and CEO expressed satisfaction in resolving these matters and emphasized the company's commitment to transparency and integrity moving forward [1]

Core Viewpoint - Archer-Daniels-Midland Company (NYSE:ADM) is recognized as a low-risk stock suitable for retirement portfolios, with potential margin improvements anticipated into 2026 according to JPMorgan [1][2]. Group 1: Company Performance and Outlook - JPMorgan raised its price target for ADM to $60 from $59 while maintaining an Underweight rating, indicating a cautious outlook despite an improved environment in the agricultural products industry [2]. - The agricultural products sector is expected to benefit from improved margins, particularly with soybean board crush futures suggesting positive trends as 2026 approaches [2]. - ADM has faced challenges in recent years, including the impact of the Ukraine war on supply chains and falling crop prices due to oversupply [3]. Group 2: Financial Integrity and Investor Confidence - The company is working to rebuild investor confidence following accounting errors disclosed in 2024, which involved improper recording of sales and led to restated financial results and a reduced profit outlook [4]. - ADM operates a global agricultural supply chain, processing and transporting crops to meet food demand by connecting local markets with global resources [4].

Group 1 - The soft commodity sector, including grains, livestock, and dairy products, is gaining momentum and attracting market attention, alongside the strong performance of hard commodities like gold and silver [1] - The VanEck Agribusiness ETF (MOO.US) offers diversified exposure across the agricultural value chain, including fertilizers, machinery, and food processing, rather than solely betting on spot prices [1] - Nutrien (NTR.US) has seen a nearly 20% increase over the past two weeks and is considered a strong stock in the agricultural sector [1] Group 2 - CF Industries Holdings (CF.US) has risen over 18% year-to-date and has recorded four consecutive weeks of gains, marking its longest winning streak since last year [2] - Archer Daniels Midland (ADM.US) has increased approximately 17% this year, with a dividend yield close to 3%, and has recently broken through the key $65 resistance level [2] - Darling Ingredients (DAR.US) has seen a cumulative increase of about 23% over the past three months, with its stock price recently surpassing the critical $40 resistance level [2]

Core Insights - ADM has been recognized as one of the world's most admired companies in the food production industry by FORTUNE Magazine for 2026 [1] - The "World's Most Admired Companies" list serves as a definitive report card on corporate reputation, developed by FORTUNE and Korn Ferry [1] - The selection process began with approximately 1,500 candidates, including the 1,000 largest U.S. companies ranked by revenue and non-U.S. companies from the Fortune Global 500 database [1]

Company Overview - Archer-Daniels Midland (ADM) is positioned as a resilient company that generates consistent cash flow regardless of economic conditions, making it a safe investment choice for 2026 [4][5] - The company has delivered a total return of 26% over the past year, showcasing its ability to provide dividends and price gains even in a volatile market [5][12] Market Dynamics - The agricultural market operates in predictable cycles, with corn and soybean prices currently at a cyclical low, presenting a buying opportunity for ADM [7] - The global population growth and increasing wealth in developing nations are driving demand for protein, which in turn increases the need for corn and soy meal as feed [8][9] Business Strategy - ADM is expected to benefit from a proposed Renewable Fuel Standard rule by the EPA that could increase demand for corn and soybeans, thereby improving profit margins [10] - The company is implementing cost-cutting measures aimed at reducing annual costs by $500 to $700 million over the next three to five years, which will enhance future profit per share [11] Shareholder Value - ADM has been actively repurchasing its own shares, reducing the share count by 14% over the past five years, which increases earnings per share even if total earnings remain flat [12] - The company is also recognized as a "Dividend King," having raised its dividend for over 50 consecutive years, indicating strong financial health and commitment to returning value to shareholders [14]