13 Best Farmland and Agriculture Stocks To Invest In According to Hedge Funds

6. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 34

The Mosaic Company (NYSE:MOS) is a leading global producer of concentrated phosphate and potash fertilizers, playing a vital role in the agriculture industry. The company extracts, produces, and supplies millions of tonnes of high-quality fertilizers each year, significantly supporting farmland and agricultural productivity.

In the third quarter of 2024, The Mosaic Company (NYSE:MOS) reported revenues of $2.8 billion, a 21% decrease from the same quarter last year, primarily due to lower selling prices. However, the company achieved a net income of $122 million, a significant recovery from a net loss of $4 million in Q3 2023. This turnaround demonstrates The Mosaic Company’s (NYSE:MOS) resilience and ability to address challenges such as weather-related disruptions.

The company is strategically focusing on capital allocation to enhance its growth potential. The company has completed several projects that require minimal capital investment but promise high returns. Notable achievements include the completion of an 800,000-tonne Riverview MicroEssentials capacity conversion and the 500,000-tonne Esterhazy potash compaction project in Q2 2024.

Looking ahead, The Mosaic Company (NYSE:MOS) plans to enhance its milling capacity by 400,000 tonnes with the Esterhazy Hydrofloat project, expected to be completed by mid-2025. Additionally, a new 1 million-tonne blending facility in Palmeirante, Brazil is expected to be finished by the third quarter of 2025.

To improve efficiency, The Mosaic Company (NYSE:MOS) is working on cost reduction initiatives aimed at achieving a $150 million run rate by the end of 2025. The company also expects to lower its 2024 capital expenditures by $200 million compared to 2023 levels. Additionally, in the first nine months of 2024, The Mosaic Company (NYSE:MOS) returned $415 million to shareholders.

With its strong market position, commitment to operational improvements, and focus on shareholder returns, The Mosaic Company (NYSE:MOS) represents an attractive investment opportunity.