5 Best Farmland and Agriculture Stocks To Buy Heading Into 2023

2. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 50

Corteva, Inc. (NYSE:CTVA) is an Indiana-based agriculture company that develops technologies like advanced germplasm and related traits that deliver optimum yield for farms. The company also provides products that protect fields against weeds, insects, pests, and diseases. On November 30, Corteva, Inc. (NYSE:CTVA) announced the acquisition of the biologicals firm Stoller Group for $1.2 billion in cash. The deal will be completed in the first half of 2023 and Stoller’s results will be accretive to Corteva, Inc. (NYSE:CTVA)’s operating EBITDA and operating EPS next year.

On November 17, Barclays analyst Benjamin Theurer raised the price target on Corteva, Inc. (NYSE:CTVA) to $75 from $71 and kept an Overweight rating on the shares following the Q3 earnings season. 

According to Insider Monkey’s data, 50 hedge funds were long Corteva, Inc. (NYSE:CTVA) at the end of the third quarter of 2022, compared to 42 funds in the last quarter. Israel Englander’s Millennium Management is the largest stakeholder of the company, with 2.60 million shares worth $148.70 million. 

Here is what Aristotle Capital Management Value Equity has to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2022 investor letter:

“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”