CHICAGO — ADM’s stock price plummeted by 24% on Monday, Jan. 22, marking its largest one-day percentage decline since 1929. The stock closed at $51.69 per share on Jan. 22, the lowest since February 2021.

The drop was triggered by the company’s announcement that it had placed Vikram Luthar, its chief financial officer, on administrative leave as it investigates accounting practices in its Nutrition segment.

ADM cut its 2023 profit forecast and delayed its fourth-quarter results due to the investigation related to certain inter-segment transactions, in response to a voluntary document request by the US Securities and Exchange Commission (SEC). The SEC has not yet commented on the matter.

At least four brokerages downgraded ADM’s stock after the SEC request. Arun Sundaram, an analyst with CFRA Research, maintained his “hold” opinion on ADM but noted that the research firm expects the investigation and uncertain outlook “to cast a shadow over ADM’s shares, as the Nutrition segment was once the fastest growing and most profitable segment.”

Morningstar Equity lowered its fair value estimate on Jan. 23.

“At current prices, we view ADM shares as slightly undervalued, with the stock trading below our fair value estimate but in 3-star territory,” said Seth Goldstein, analyst, Morningstar Equity. “Accordingly, we recommend investors wait for the stock to offer a larger margin of safety before considering an entry point.”