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

3. Archer-Daniels-Midland Company (NYSE:ADM)    

Number of Hedge Fund Holdings: 40

Operating across the regions of the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, and the United Kingdom, Archer-Daniels-Midland Company (NYSE:ADM) is engaged in the transportation and procurement of agricultural commodities, ingredients, flavors, and solutions.

It is placed 3^rd on our list of 10 Best Farmland and Agriculture Stocks to Buy According to Hedge Funds, as 40 hedge funds have invested in the stock; this investment totals $966.4 million, the largest chunk of which is invested by D E Shaw, worth $259.6 million! Furthermore, the popularity of the stock has grown on a quarterly basis, as the number of hedge fund investors rose from 34 to 40 in Q1,24, while the investment value rose 17.95% over the quarter. 14 analysts have a price target set at $62.91, as compared to its current price of $61.35.

As of the 1^st quarter of 2024, the adjusted average return on invested capital (ROIC) for the last four quarters is a decent 11.2%. Following is what Juan Luciano, the CEO, had to say about the company’s performance for the 1^st quarter 2024 and its 2024 outlook:

“ADM reported first quarter adjusted earnings per share of $1.46, adjusted segment operated profits of $1.3 billion, and a trailing fourth quarter average adjusted ROIC of 11.2%. Our first quarter operating cash flow before working capital was $900 million. In a year where the buildup of grain and oil seeds supply is expected to create pressure on margins, our teams are proactively taking action to manage through the cycle, driving structural earnings, ROIC, and cash flow generation. Our strong performance and disciplined management of our balance sheet continue to allow us to invest in our business and return cash to shareholders.”