ADM Irregularities: What Investors Need to Know

ADM Irregularities: What Investors Need to Know

There have been billing irregularities at the grain giant ADM, and at least four brokers have downgraded the stock. What's going on there? Archer-Daniels-Midland (ADM) shares plunged 24 percent on Monday, posting their biggest daily loss since 1929, after finance chief Vikram Luthar was placed on leave amid an investigation into accounting practices in its grocery segment. The global grain trader cut its 2023 profit forecast and said fourth-quarter results would be delayed due to the investigation into certain transactions between segments. The company responded to a voluntary request for documents from the US Securities and Exchange Commission (SEC). According to a report by www.wallstreet-online.de,

The investigation into Archer-Daniels-Midland's (ADM) accounting practices has led to a sharp drop in stock prices. Irregularities in billing and the leave of absence of the CFO have led to great uncertainty among investors. The cut in 2023 earnings guidance and the delay in fourth-quarter results also contributed. These developments could undermine investor confidence in the company and have a negative impact on the market as a whole. In particular, the US Securities and Exchange Commission's voluntary document request suggests that the investigation could have serious implications. If it turns out that the irregularities actually resulted from serious accounting violations, this could lead to further share devaluations and general caution in financial markets.