10 Best Farmland and Agriculture Stocks To Buy According to Hedge Funds

4. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holdings: 38

The Mosaic Company (NYSE:MOS), headquartered in Florida, U.S., runs through its three segments: Phosphates, Potash, and Mosaic Fertilizantes. By doing so, it produces and sells phosphate and potash crop nutrients.

In the 1^st quarter of 2024, the company scored sales of 2.2 million tons for its potash segment, translating it into an EBITDA of $281 million. On the other hand, the phosphates segment was able to bag a sales volume of 1.6 million tons, reflecting an adjusted EBITDA of $277 million.

Currently, 28 hedge funds have invested in The Mosaic Company (NYSE:MOS), with investments totaling $579.2 million. The biggest chunk of these investments belongs to D E Shaw, who holds a value of $111 million!

5 out of 6 analysts have held on to the stock for the last 3 months, with the price target of the stock being set at $35.4, as compared to its current price of $27.8, which would translate into an upside potential of a whopping 27.3%!

This is what President and the CEO, Bruce Bodine spoke about the company’s outlook, as of 2024 first quarter:

“First, the transaction we announced with Ma’aden highlights our commitment to unlocking shareholder value. Exchanging our 25% stake in the MWSPC joint venture for an approximately $1.5 billion position in Ma’aden provides a clear indication of value and greater capital flexibility in the future; second, we are making good progress on several high-return, low-capital intensity initiatives that will improve results across the commodity cycle; and third, fertilizer market fundamentals remain constructive and the phosphate supply and demand picture is particularly compelling.

As the North America spring planting season winds down and fertilizer prices have moderated, fertilizer demand strength is now emerging in other key agricultural geographies, which will bode well for pricing in the second half of the year.

We have several other ongoing initiatives to drive improved returns. Our $150 million cost reduction plan is on track and delivering early results. Potash production cash cost per tonne declined about $10 in the first quarter compared with the same period in the prior year. We are rightsizing our workforce and have identified opportunities to reduce our third-party contractors over the next 18 months, which will result in $20 million to $30 million in annual cost savings when complete. We are making progress on our SG&A expense management. With our first quarter SG&A expenses down by $21 million or 16% compared with a year ago.”