In this article, we discuss the 25 biggest agriculture stocks.
The agriculture industry consists of sales of agriculture and related services, such as animal and crop production and other support services. In order to sustain and enhance human life, agriculture involves the cultivation of plants and animal and bird rearing for food, fabrics, fibers, biofuel, medicinal, and other products. It also includes horticulture and aquaculture. Wheat, maize, rice, jute, and other crops are grown on a large scale in the sector. Agricultural products can be organic or conventional and are distributed through supermarkets/hypermarkets, convenience stores, e-commerce, and other channels.
As per a recent report, the global agriculture market grew from $11,109.32 billion in 2021 to $12,152.6 billion in 2022 at a compound annual growth rate (CAGR) of 9.4%. After the global economic recovery from the COVID-19 pandemic, there was a chance for the agriculture industry to grow exponentially, but the Russia-Ukraine war acted as a major spoiler. The war between these two countries has led to economic sanctions on multiple countries, an increase in commodity prices, and supply chain disruptions, affecting many markets across the globe.
Heading towards 2023, farmers and consumers across the globe are concerned about the volatile agriculture market. This is because the prices of major crops like corn, soybean and wheat have been trading higher than usual levels because of the Russia-Ukraine war and weather issues. These factors are also going to affect the supply of grain and oilseeds for three or more years. According to analysts, the agriculture industry will face serious issues in 2023, such as trade disruptions and increased commodity prices.
A slowdown in the production growth of major EU agricultural sectors is expected as well. This is due to a combination of factors, like climate change leading to more frequent adverse and extreme weather events, animal disease outbreaks, and changes in consumption trends. Furthermore, Ukraine is one of the top suppliers of corn, wheat and sunflower oil to the world, and the war in the country has cut the supply of these commodities. The possibility of natural gas supply disruption in the EU from Russia can lead to a spike in fertilizers prices too.
The population of the world is growing and is expected to reach 10 billion by 2050. An increase in the population creates more demand for food. Agriculture companies are expected to increase their presence and activities to meet increased demand. Some of the top firms working in the sector include Nutrien Ltd. (NYSE:NTR), Corteva, Inc. (NYSE:CTVA), and Bunge Limited (NYSE:BG).
Our Methodology
These were picked from a careful assessment of the agriculture industry. The details of each company are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. Hedge fund sentiment is also included for further clarity on the money being poured into these firms and the confidence that elite investors have in their success.
Photo by Sebastian Gómez on Unsplash
Agriculture Stocks List: Biggest Agriculture Stocks
25. BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (NYSE:LND)
Number of Hedge Fund Holders: 2
BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (NYSE:LND) engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil. On September 1, BrasilAgro shared its consolidated results for the year and quarter ended June 30, 2022. Net revenue totaled R$1.5 billion, increasing by 98%, of which R$1.2 billion was from the sale of agricultural products and R$316.2 million came from the sale of farms.
At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $827,000 in BrasilAgro – Companhia Brasileira de Propriedades Agrícolas, compared to 2 in the previous quarter worth $984,000.
Just like Nutrien Ltd., Corteva, Inc., and Bunge Limited, BrasilAgro – Companhia Brasileira de Propriedades Agrícolas is one of the biggest agriculture companies in the world.
24. AgroFresh Solutions, Inc. (NASDAQ:AGFS)
Number of Hedge Fund Holders: 2
AgroFresh Solutions, Inc. (NASDAQ:AGFS) provides science-based solutions, data-driven technologies, and high-touch customer services. In late November, the company announced that it had entered into a definitive merger agreement with investment funds affiliated with Paine Schwartz Partners. As part of the agreement, the investment funds will acquire all of the outstanding common stock of the firm for $3.00/share in cash. The consideration represents a 91% premium over the company’s share price.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Renaissance Technologies is a leading shareholder in AgroFresh Solutions, Inc. with 416,111 shares worth more than $624,000.
23. Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA)
Number of Hedge Fund Holders: 2
Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA) operates as a poultry producer in Mexico and the United States. On October 24, Industrias Bachoco announced its unaudited results for the third quarter. During the nine months of 2022, net sales totaled $75,256.9 million; $14,809.3 million or 24.5% more than $60,447.5 million reported in the same period of 2021. The increase in sales is mainly attributable to the higher volume sold as part of the integration of RYC Alimentos.
At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $28.9 million in Industrias Bachoco, S.A.B. de C.V., compared to 3 the preceding quarter worth $30.5 million.
In its Q3 2021 investor letter, Tweedy, Brown Company LLC, an asset management firm, highlighted a few stocks and Industrias Bachoco, S.A.B. de C.V. was one of them. Here is what the fund said:
“Industrias Bachoco, S.A.B. de C.V., the Mexican poultry company, founded in 1952, is a roughly $2B market cap company that operates poultry production and distribution facilities primarily throughout Mexico, where it breeds, processes, and markets chicken, which accounts for the overwhelming bulk of its sales. It is the number one chicken producer and the number two egg producer in Mexico, with 35% and 5% market shares, respectively. While the chicken business is notoriously cyclical, with profitability varying significantly year-to-year based on the volatility of chicken prices, the company’s volumes steadily grow, and even in the company’s worst years, it has not lost money. Over the last decade, the company has been able to compound its tangible book value per share including dividends by between 11% and 12% per year on average. At purchase, Bachoco had net cash constituting roughly 45% of its market cap (32.5 pesos per B share) and was trading at 8 times current P/E, 6 times normalized EBIT, around tangible book value, with a dividend yield of a little under 2%. It also had a normalized owner earnings yield above 12%. In August, a U.S.-based poultry company, Sanderson Farms, was acquired by a joint venture company put together by Cargill/Continental Grain in a 100% cash transaction. Other than having different geographic locations, Sanderson and Bachoco are directly comparable poultry businesses with similar long-term records. In thinking about the value of Bachoco, if one were to extrapolate the multiples paid for Sanderson, it would imply an estimated intrinsic value for Bachoco that is more than double the average price the Funds paid for their shares.”
22. Bioceres Crop Solutions Corp. (NASDAQ:BIOX)
Number of Hedge Fund Holders: 5
Bioceres Crop Solutions Corp. (NASDAQ:BIOX) provides crop productivity solutions. On September 8, Bioceres Crop Solutions reported fiscal fourth quarter and full-year 2022 financial and operational results. HB4 Wheat revenues were $12.4 million, a 94% increase compared to the year-ago contributed goods number.
On November 11, Lake Street analyst Ben Klieve maintained a Buy rating on Bioceres Crop Solutions Corp. stock and raised the price target to $30 from $25, highlighting that the company reported its best quarter in corporate history.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Solel Partners is a leading shareholder in Bioceres Crop Solutions Corp. with 4.6 million shares worth more than $59.6 million.
21. Village Farms International, Inc. (NASDAQ:VFF)
Number of Hedge Fund Holders: 6
Village Farms International, Inc. (NASDAQ:VFF) produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. On November 29, Village Farms International announced its financial results for the third quarter ended September 30, 2022. Village Farms reported that its Canadian cannabis business became the third-largest producer in Canada across all product categories for the third quarter. The retail branded sales for the Canadian business increased 46% year-over-year and 26% sequentially.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Renaissance Technologies is a leading shareholder in Village Farms International, Inc. with 249,661 shares worth more than $477,000.
20. Alico, Inc. (NASDAQ:ALCO)
Number of Hedge Fund Holders: 6
Alico, Inc. (NASDAQ:ALCO) operates as an agribusiness and land management company in the United States. On December 13, Alico, Inc. announced financial results for the fourth quarter and fiscal year ending September 30, 2022. During the time, the firm harvested approximately 5.5 million boxes of fruit, a decrease of 12.9% from the prior fiscal year.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Alico, Inc. with 62,096 shares worth more than $1.8 million.
19. Limoneira Company (NASDAQ:LMNR)
Number of Hedge Fund Holders: 6
Limoneria Company (NASDAQ:LMNR) operates as an agribusiness and real estate development company in the United States and internationally. On September 8, Limoneira Company reported financial results for the fiscal third quarter that ended July 31, 2022. Agribusiness revenue for the third quarter of the fiscal year 2022 includes $27.8 million in fresh lemon sales, compared to $24.4 million in fresh lemon sales during the same period of the fiscal year 2021. Approximately 1,512,000 cartons of fresh lemons were sold in aggregate during the third quarter of fiscal year 2022 at an $18.39 average price per carton.
At the end of the third quarter of 2022, 6 hedge funds in the database of Insider Monkey held stakes worth $6.2 million in Limoneria Company, compared to 6 in the previous quarter worth $9.7 million.
18. Tejon Ranch Co. (NYSE:TRC)
Number of Hedge Fund Holders: 8
Tejon Ranch Co. (NYSE:TRC) operates as a diversified real estate development and agribusiness company. The commercial/industrial real estate development segment in Tejon Ranch had revenues of $32.2 million for the first nine months of 2022, an increase of $19.4 million, or 152%, from $12.8 million for the first nine months of 2021.
At the end of the third quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $38.7 million in Tejon Ranch Co., compared to 9 in the previous quarter worth $41.3 million.
17. American Vanguard Corporation (NYSE:AVD)
Number of Hedge Fund Holders: 10
American Vanguard Corporation (NYSE:AVD) manufactures and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. On November 8, American Vanguard Corp announced financial results for the third quarter and nine months that ended September 30, 2022. Net sales of the company were $152 million in 2022, a 3.4% increase, compared with $147 million in 2021. Net sales of $450 million in 2022, a 13.1% increase, compared with $398 million in 2021.
At the end of the third quarter of 2022, 10 hedge funds in the database of Insider Monkey held stakes worth $30.4 million in American Vanguard Corporation, compared to 15 in the previous quarter worth $49.5 million.
16. Cadiz Inc. (NASDAQ:CDZI)
Number of Hedge Fund Holders: 10
Cadiz Inc. (NASDAQ:CDZI) operates as a natural resource development company in the United States. On November 10, Cadiz Inc announced that it has entered into a securities purchase agreement for a registered direct offering of 5 million shares of common stock for total proceeds of $10 million. Heerema International Group Services SA, a leading international offshore sustainable energy solutions company, anchored the offering with an investment of $3.6 million. The company intends to utilize net cash proceeds from the offering for capital expenditures to accelerate the development of the Cadiz Water Conservation and Storage Project and to scale the deployment of the recently acquired water filtration systems from ATEC Systems.
At the end of the third quarter of 2022, 10 hedge funds in the database of Insider Monkey held stakes worth $2.6 million in Cadiz Inc., compared to 10 in the preceding quarter worth $3.8 million.
15. Local Bounti Corporation (NYSE:LOCL)
Number of Hedge Fund Holders: 11
Local Bounti Corporation (NYSE:LOCL) grows fresh greens and herbs in the United States. On November 7, the company announced that it was partnering with Sam’s Club for its leafy greens production starting at its advanced greenhouse facility in Georgia. Brian Cook, the president of the firm, said the commercial development represents a powerful endorsement to deliver the highest quality locally grown produce to customers.
At the end of the third quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $3.9 million in Local Bounti Corporation, compared to 12 in the preceding quarter worth $4 million.
14. Adecoagro S.A. (NYSE:AGRO)
Number of Hedge Fund Holders: 11
Adecoagro S.A.(NYSE:AGRO) operates as an agro-industrial company in South America. It engages in farming crops and other agricultural products, dairy operations, and land transformation activities, as well as sugar, ethanol, and energy production activities. On September 30, Adecoagro S.A. shared the data on sales of goods and services rendered, in which it mentioned the sales of rice, which was $138,974,000. The sales of dairy were $181,504,000.
At the end of the third quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $129.3 million in Adecoagro S.A., compared to 14 in the previous quarter worth $138.5 million.
13. Alamo Group Inc. (NYSE:ALG)
Number of Hedge Fund Holders: 11
Alamo Group Inc. (NYSE:ALG) designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. On November 3, Alamo Group posted Vegetation Management net sales of $228.5 million, up 8.9% year-over-year. Industrial Equipment net sales were $140.3 million, up 9.2% year-over-year.
On November 7, DA Davidson analyst Michael Shlisky maintained a Neutral rating on Alamo Group Inc. stock and raised the price target to $156 from $136, highlighting that the company is experiencing strong demand tailwinds and looks likely to ride out 2023 with more than just a strong opening backlog.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Longview Asset Management is a leading shareholder in Alamo Group Inc. with 1.4 million shares worth more than $166.5 million.
12. Vital Farms, Inc. (NASDAQ:VITL)
Number of Hedge Fund Holders: 13
Vital Farms, Inc. (NASDAQ:VITL) is an ethical food company that provides pasture-raised products in the United States. On November 3, Vital Farms reported financial results for its third quarter ended September 25, 2022. Vital Farms added further retail distribution this quarter, and their household penetration was up over 40% compared to the same period last year to nearly 8 million homes. The growth was attributed to continuous improvements in its egg sales, a 28% growth in volume, rising prices in the grocery store and broader distribution.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Driehaus Capital is a leading shareholder in Vital Farms, Inc. with 1.1 million shares worth more than $13 million.
11. Benson Hill, Inc. (NYSE:BHIL)
Number of Hedge Fund Holders: 16
Benson Hill, Inc. (NYSE:BHIL) operates as a food technology company that unlocks the natural genetic diversity of plants. Benson Hill reported in their third-quarter results that their most revenue was earned due to the sales of ingredients, which was about $122 million.
On October 4, Lake Street analyst Ben Klieve initiated coverage of Benson Hill, Inc. with a Buy rating and $7 price target.
At the end of the third quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $18.7 million in Benson Hill, Inc., compared to 17 in the previous quarter worth $21.3 million.
10. The Andersons, Inc. (NASDAQ:ANDE)
Number of Hedge Fund Holders: 16
The Andersons, Inc. (NASDAQ:ANDE) is an agriculture company that operates in trade, renewables, and plant nutrient sectors in the United States and internationally. On December 16, the firm announced a quarterly dividend of $0.185/share, a 2.8% increase from prior dividend of $0.180. The forward yield was 2.15%.
At the end of the third quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $34.6 million in The Andersons, Inc., compared to 15 the preceding quarter worth $39.5 million.
9. AGCO Corporation (NYSE:AGCO)
Number of Hedge Fund Holders: 24
AGCO Corporation (NYSE:AGCO) manufactures and distributes agricultural equipment and related replacement parts worldwide. On November 1, AGCO reported its results for the third quarter ended September 30, 2022. Net sales in the North American region grew 19.1% in the first nine months of 2022 compared to the same period of 2021, excluding the negative impact of currency translation. The increase resulted primarily from increased sales of tractors and precision planting equipment along with the effects of pricing to mitigate inflationary cost pressures.
On December 19, Wells Fargo analyst Seth Weber maintained an Overweight rating on AGCO Corporation stock and raised the price target to $170 from $165, noting that the company has made efforts to expand its product portfolio, which contributes to a better-than-expected 2023 outlook as underlying markets remain supportive.
At the end of the third quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $348 million in AGCO Corporation, compared to 21 the preceding quarter worth $120.4 million.
8. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Number of Hedge Fund Holders: 27
Cal-Maine Foods, Inc. (NASDAQ:CALM) produces, grades, packages, markets, and distributes shell eggs. The company saw its highest ever quarterly sales of specialty eggs of $200.8 million, or 31.8 % of total shell egg revenue, in the third quarter. Specialty dozens sold were 34.7% of total dozens sold compared with 27.8% in the prior-year period. The net average selling price for specialty eggs rose 12.2% to $2.101 per dozen, compared with $1.872 per dozen for the prior quarter.
Among the hedge funds being tracked by Insider Monkey, Columbus, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Cal-Maine Foods, Inc. with 1.6 million shares worth more than $91.5 million.
In its Q3 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Cal-Maine Foods, Inc. was one of them. Here is what the fund said:
“On an individual holdings basis, top contributors to return in Q3 included Cal-Maine Foods, Inc. and WESCO International. Tight hen supply tied to a bird flu outbreak has supported higher egg prices, a key driver for egg-producer Cal-Maine’s profitability. Outside of that exogenous event, Cal-Maine is well positioned amid an industry shift to cage-free eggs. Cal-Maine invested ahead of competitors in upgrading facilities — spending on its upgrades when inflation was lower — which we believe should prove an additional boon enabling ongoing share gains.”
7. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 28
FMC Corporation (NYSE:FMC) is an agricultural sciences company that provides crop protection, plant health, and professional pest and turf management products. On August 2, FMC Corporation revealed that sales in the second half of 2022 are expected to be in the range of $2.70 billion to $2.90 billion, representing 7 percent growth at the midpoint compared to the same period last year.
On November 15, Loop Capital analyst Christopher Kapsch upgraded FMC Corporation stock to Buy from Hold with a price target of $149, up from $132.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in FMC Corporation with 1.2 million shares worth more than $130 million.
In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and FMC Corporation was one of them. Here is what the fund said:
“We also believe that a lot of Energy equities remain mispriced. The sector generated negative returns in four of the last six years (2015, 2017, 2018, and 2020). Even with a strong 2021 and start to 2022, the Energy sector’s 10-year returns at the end of the 2nd quarter are only 4.3% versus 18.7% for Technology and 13% for the overall S&P 500. Our two energy holdings – Nabors Industries (NYSE:NBR) and TechnipFMC – are oil service companies that recently experienced multi-year trough conditions. Given the delayed industry Capital Expenditure (“capex”) recovery, both companies have only recently seen higher utilization rates, improved pricing, higher margins, and growing backlogs. It is also important to note that their revenue isn’t directly tied to a commodity price but to industry capital spending trends. Both management teams see a multi-year positive industry capex cycle with oil prices greater than $70/share. Nabors and TechnipFMC share prices are still 75% below their 5-year highs, at low single-digit cash flow multiples, and normalized free cash flow yields in excess of 30%. Both companies have significant price-to-value gaps that offer the potential to generate very positive long-term returns.”
6. The Scotts Miracle-Gro Company (NYSE:SMG)
Number of Hedge Fund Holders: 29
The Scotts Miracle-Gro Company (NYSE:SMG) is involved in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. Scotts Miracle Gro reported that during the quarter that ended September 30, 2022, the company recognized gains of $11.9 million and $16.2 million, respectively, in the impairment and restructuring space.
On November 8, Barclays analyst Gaurav Jain upgraded The Scotts Miracle-Gro Company stock to Overweight from Equal Weight with an unchanged price target of $75, backing the firm to deliver rapidly from here even under a wide range of macro scenarios.
At the end of the third quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $128.3 million in The Scotts Miracle-Gro Company, compared to 25 in the preceding quarter worth $142.9 million.
Along with Nutrien Ltd., Corteva, Inc., and Bunge Limited, The Scotts Miracle-Gro Company is one of the biggest agriculture companies in the world.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 37
Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States, Switzerland, Cayman Islands, Brazil, Mexico, the United Kingdom, and internationally. The company principally generates revenue from merchandising and transporting agricultural commodities, and manufacturing products for use in food, beverages, feed, energy, and industrial applications, and ingredients and solutions for human and animal nutrition. The company recognized revenue from transportation service contracts of $227 million and $611 million for the three and nine months ended September 30, 2022, respectively, compared to $153 million and $408 million for the three and nine months ended September 30, 2021, respectively.
On December 14, UBS analyst Manav Gupta initiated coverage of Archer-Daniels-Midland Company stock with a Buy rating and $115 price target, backing the company to deliver earnings of $7.75 per share by 2026 when factoring in productivity and innovation initiatives.
Among the hedge funds being tracked by Insider Monkey, Glen Allen-based investment firm Markel Gayner Asset Management is a leading shareholder in Archer-Daniels-Midland Company with 1.5 million shares worth more than $117.7 million.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Archer-Daniels-Midland Company was one of them. Here is what the fund said:
“Archer-Daniels-Midland Company is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
4. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 37
Tractor Supply Company (NASDAQ:TSCO) operates as a rural lifestyle retailer in the United States. On September 24, 2022, the company operated 2,027 tractor supply stores in 49 states, a consumer mobile app and an e-commerce website. In October 2022, Tractor Supply acquired 81 stores from Orscheln Farm and Home that will be rebranded to Tractor Supply by the end of 2023.
On December 5, Wells Fargo analyst Zachary Fadem maintained an Overweight rating on Tractor Supply Company stock and raised the price target to $255 from $250, highlighting that company’s structural and idiosyncratic drivers, a healthy dose of ESG and the company’s ability to navigate a highly variable macro backdrop in fiscal 2023 may return positive results.
At the end of the third quarter of 2022, 37 hedge funds in the database of Insider Monkey held stakes worth $751 million in Tractor Supply Company, compared to 41 the preceding quarter worth $1.3 billion.
In its Q4 2021 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Tractor Supply Company was one of them. Here is what the fund said:
“Tractor Supply Company contributed favorably to performance during the quarter. Demand from the Company’s niche, affluent rural customer base continues to surge in a post-COVID world with comparable store sales running over +40% higher compared to pre-pandemic (2019) levels. Tractor Supply is seeing growth across all channels, from its website to e-commerce which is fulfilled by its 2000-store fleet to regular in-store traffic. The Company is also managing inflation and supply chain disruptions extremely well, passing through nearly +7% of inflation on consumable goods and managing a quarterly inventory in-stock rate that was higher than pre-pandemic. Tractor Supply is an exceptional retailer, and we continue to hold it as a top position.”
3. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 48
Bunge Limited operates as an agribusiness and food company worldwide. On December 14, UBS analyst Manav Gupta initiated coverage of Bunge Limited stock and with a Buy rating and $133 price target, noting that market is primarily focused on margin compression in 2024-2025 while ignoring the $13.50-plus per share in earnings Bunge should deliver in 2022.
At the end of the third quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $763 million in Bunge Limited, compared to 48 in the previous quarter worth $729 million.
In its Q1 2022 investor letter, Old West Investment Management, an asset management firm, highlighted a few stocks and Bunge Limited was one of them. Here is what the fund said:
“Bunge (pronounced BUN-GEE) Ltd is one of the biggest agribusinesses and food companies in the world. Four worldwide companies dominate the sector, the others being Archer-Daniels-Midland Cargill and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long-time executive at Conagra Foods who sensed an opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…read more
2. Corteva, Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 50
Corteva, Inc. operates in the agriculture business. In late November, the firm announced that it would acquire biologicals firm Stoller Group for $1.2 billion in cash. The maker of agricultural chemicals expects the deal to be completed in the first half of 2023 after regulatory approvals and other customary conditions. The firm said Stoller’s results will be accretive to operating EBITDA and operating EPS for next year.
On November 17, Barclays analyst Benjamin Theurer maintained an Overweight rating on Corteva, Inc. stock and raised the price target to $75 from $71, noting that fiscal year 2023 is believed to show slightly more normal levels of earnings, with results beating previous performance.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Corteva, Inc. with 2.6 million shares worth more than $148.7 million.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Corteva, Inc. was one of them. Here is what the fund said:
“Corteva, Inc., 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.”
1. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 52
Nutrien Ltd. provides crop inputs and services. It offers potash, nitrogen, phosphate, and sulfate products; and financial solutions. Nutrien Ltd reported that in the first quarter, their potash sales in tonnes were $14.5 million. The nitrogen sales in tonnes was $10.7 million.
On November 17, Barclays analyst Benjamin Theurer maintained an Overweight rating on Nutrien Ltd. stock and lowered the price target to $95 from $105.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Nutrien Ltd. with 8.4 million shares worth more than $701.8 million.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Nutrien Ltd. was one of them. Here is what the fund said:
“However, we believe this is exactly the kind of environment that separates the highest-quality companies from their peers and allows them to strengthen their competitive positioning. For example, Nutrien Ltd., a Canadian fertilizer company, was a top contributor during the quarter. While the war in Ukraine and economic sanctions on Russia have significantly reduced the output of two of the world’s largest agricultural producers, Nutrien has benefited from a strong global agricultural cycle and from farmers seeking to increase their output and capitalize on higher agricultural prices.”
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This article is originally published at Insider Monkey.
