Ricky Sandler’s Eminence Capital’s Top 5 Stocks

3. Corteva, Inc. (NYSE:CTVA)

Eminence Capital’s Stake Value: $313,175,000

Percentage of Eminence Capital’s 13F Portfolio: 3.85%

Number of Hedge Fund Holders: 34

Corteva, Inc. (NYSE:CTVA) is an agri-science company, mastering crop protection technologies to enable farmers to grow crops in a way that is healthier, sustainable, and optimizes profitability. Corteva, Inc. (NYSE:CTVA) offers a range of herbicides, insecticides, and pesticides that benefit the soil, control insects, and nourish the fields for a healthier crop cycle. The company also supplies superior quality seeds which produce better crops. Corteva, Inc. (NYSE:CTVA) is one of the best stocks according to Ricky Sandler’s 13F portfolio for the second quarter. 

Sandler owns 7.06 million shares in Corteva, Inc. (NYSE:CTVA) as of the end of June, worth $313.17 million, accounting for 3.85% of his 13F portfolio. 

At the end of the second quarter, Insider Monkey’s database of elite funds indicated 34 funds that were bullish on Corteva, Inc. (NYSE:CTVA), down from 35 in Q1. 

On October 18, Christopher Kapsch from Loop Capital downgraded Corteva, Inc. (NYSE:CTVA) from Buy to Hold, lowering the price target from $54 to $48. Even though the company’s current initiatives will result in a long-term value addition, short-term problems such as supply chain disruptions and rising raw material costs might impact the performance. 

Here is what Rhizome Partners has to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2021 investor letter:

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”