5 Best Fertilizer Stocks to Buy According to Hedge Funds

1. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 65

CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based company that manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. Although Q3 earnings missed estimates, the revenues rose 70% year-over-year to $2.32 billion and the company’s board authorized a new $3 billion stock buyback program.

On November 1, Mizuho analyst Christopher Parkinson maintained a Neutral rating on CF Industries Holdings, Inc. (NYSE:CF) but lowered the price target on the shares to $113 from $117. The analyst reiterated a favorable view of the agriculture industry but slashed estimates given a “shaky” near-term demand trend and input price volatility.

According to Insider Monkey’s data, 65 hedge funds were bullish on CF Industries Holdings, Inc. (NYSE:CF) at the end of the third quarter of 2022, compared to 52 funds in the prior quarter. Eric W. Mandelblatt’s Soroban Capital Partners held the biggest stake in the company, comprising 2.4 million shares worth $239.45 million. 

Here is what Chartwell Investment Partners has to say about CF Industries Holdings, Inc. (NYSE:CF) in its Q2 2022 investor letter:

“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”

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