Archer-Daniels-Midland Stock Plunges 1.54 as $280M Trading Volume Ranks 423rd Amid Mixed Earnings and High-Frequency Strategy Outperforming 166.71

Archer-Daniels-Midland (NYSE:ADM) closed August 6, 2025, with a 1.54% decline, trading at a volume of $0.28 billion—ranking 423rd among listed stocks. The company reported second-quarter 2025 results showing revenue of $21.2 billion, a 4.9% year-over-year drop, with net income falling 55% to $219 million. Adjusted earnings per share (EPS) came in at $0.93, below the $0.99 in the prior-year quarter. Operating profit across segments varied, with the Nutrition division reporting a 5% year-on-year revenue increase to $2 billion and a 5% rise in operating profit to $114 million. However, the AS&O segment saw a 17% decline in operating profit year-over-year, attributed to uncertainties in legislative and biofuel policy impacts. Cash flow from operations reached $1.2 billion in the first half of 2025, with dividends returned to shareholders totaling $495 million. The company reiterated a full-year adjusted EPS guidance of approximately $4 per share.

Management highlighted sequential improvements in the Nutrition segment, particularly in Flavors and Animal Nutrition, alongside cost-saving progress toward $500–750 million in savings over three to five years. Challenges persist in the Crushing subsegment, where operating profit fell 75% year-over-year, and global soybean and canola crush margins declined significantly. CEO Juan Luciano noted a projected 35-65 earnings split between Q3 and Q4, with Q4 benefits from improved crush margins and the Decatur East plant’s return. He also emphasized the company’s preparedness for potential growth under pending RVO and SRE policy confirmations, which could enhance soybean oil demand. CFO Monish Patolawala confirmed remediation of prior material weaknesses in internal controls, with ongoing focus on transparency.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets.