Archer Daniels Midland Co. shares tumbled on Monday as the agribusiness giant said its chief financial officer has been placed under administrative leave amid an investigation into accounting practices in its nutrition segment. ADM shares
ADM,
-23.10%
fell 22%, putting the stock on track for its worst-ever single-day percentage decline, according to Dow Jones Market Data that goes back to Jan. 21 of 1972. On Black Monday in 1987, the stock dropped 19.9%. It was the worst performer in the S&P 500
SPX
on Monday.
The company’s outstanding bonds, meanwhile, also came under selling pressure as spreads widened by 15 basis points to 20 basis points, making them one of the worst performers in the high-grade bond sector on Monday. ADM said CFO Vikram Luther was put on immediate administrative leave following a Securities and Exchange Commission “voluntary” request for documents. The Chicago-based company said outside counsel and the board audit committee are looking at accounting practices at its nutrition segment, including intersegment transactions. Ismael Roig, a 56-year-old executive who was president both of Europe, Middle East and Africa operations as well as president of animal nutrition, has been named interim CFO. Baird analysts downgraded the stock to neutral from outperform and said it expects the issue to present downside risk until the matter is resolved. “The investigation is a result of a voluntary document request by the SEC,” wrote analysts led by Ben Kallo. “We believe this investigation will remainas an overhang for the stock until cleared.” Through the first nine months of the year, nutrition accounted for $468 million of the company’s $4.67 billi …
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ADM,
-23.10%
fell 22%, putting the stock on track for its worst-ever single-day percentage decline, according to Dow Jones Market Data that goes back to Jan. 21 of 1972. On Black Monday in 1987, the stock dropped 19.9%. It was the worst performer in the S&P 500
SPX
on Monday.
The company’s outstanding bonds, meanwhile, also came under selling pressure as spreads widened by 15 basis points to 20 basis points, making them one of the worst performers in the high-grade bond sector on Monday. ADM said CFO Vikram Luther was put on immediate administrative leave following a Securities and Exchange Commission “voluntary” request for documents. The Chicago-based company said outside counsel and the board audit committee are looking at accounting practices at its nutrition segment, including intersegment transactions. Ismael Roig, a 56-year-old executive who was president both of Europe, Middle East and Africa operations as well as president of animal nutrition, has been named interim CFO. Baird analysts downgraded the stock to neutral from outperform and said it expects the issue to present downside risk until the matter is resolved. “The investigation is a result of a voluntary document request by the SEC,” wrote analysts led by Ben Kallo. “We believe this investigation will remainas an overhang for the stock until cleared.” Through the first nine months of the year, nutrition accounted for $468 million of the company’s $4.67 billi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]