5 Best Fertilizer Stocks to Buy According to Hedge Funds

4. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 46

The Mosaic Company (NYSE:MOS) is a Florida-based company that produces and sells concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments – Phosphates, Potash, and Mosaic Fertilizantes. It is one of the best fertilizer stocks to consider. 

On October 19, The Mosaic Company (NYSE:MOS) declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on December 15, to shareholders of record on December 1. The Mosaic Company (NYSE:MOS)’s dividend yield on November 21 came in at 1.23%.

JPMorgan analyst Jeffrey Zekauskas on November 9 reiterated an Overweight rating on The Mosaic Company (NYSE:MOS) but trimmed the price target on the shares to $73 from $75 following the Q3 results. The Mosaic Company (NYSE:MOS)’s “sizeable” cash flow is being directed to its shareholders, and the company anticipates to meet its target leverage in November with the pay down of a $550 million debt tranche, the analyst wrote in a research note.

According to the third quarter database of Insider Monkey, 46 hedge funds were bullish on The Mosaic Company (NYSE:MOS), compared to 50 funds in the earlier quarter. Eric W. Mandelblatt’s Soroban Capital Partners held the leading stake in the company, consisting of 6.8 million shares worth $332 million. 

Here is what Carillon Tower Advisers specifically said about The Mosaic Company (NYSE:MOS) in its Q2 2022 investor letter:

“The Mosaic Company (NYSE:MOS) brought up the rear as fertilizer prices pulled back following a massive price spike due to the war in Ukraine and the resulting sanctions on Russia and Belarus, both major suppliers of potash fertilizers. Subsequently, fertilizer inventory began to accumulate in various locations including in Brazil as farmers refused to buy normal amounts of fertilizer due to high prices. An effort by the U.S. government to aid exports of Russian fertilizer also may have weighed on sentiment. We view the agriculture markets as still in a bull trend, but the pullback in Mosaic and other fertilizer names was substantial.”