5 Best Hydrogen and Fuel Cell Stocks To Buy

4. DuPont de Nemours, Inc. (NYSE:DD)

Number of Hedge Fund Holders: 52

DuPont de Nemours, Inc. (NYSE:DD), a multinational chemical company, has been actively working to utilize hydrogen as a clean energy source. On April 19, DuPont de Nemours, Inc. (NYSE:DD) declared a $0.36 per share quarterly dividend, in line with previous. The dividend is distributable on June 15, to shareholders of record on May 31. 

On June 2, Deutsche Bank reaffirmed a Buy rating on DuPont de Nemours, Inc. (NYSE:DD) and set a price target of $80 on the shares. The bank believes that a recent settlement involving PFAS, which includes Chemours and Corteva, removed a significant overhang on DuPont shares.

According to Insider Monkey’s first quarter database, 52 hedge funds were long DuPont de Nemours, Inc. (NYSE:DD), compared to 48 funds in the earlier quarter. Dan Loeb’s Third Point is a prominent stakeholder of the company, with 4 million shares worth $287 million. 

Third Point made the following comment about DuPont de Nemours, Inc. (NYSE:DD) in its Q4 2022 investor letter:

“We recently increased our investment in DuPont de Nemours, Inc. (NYSE:DD), a specialty chemical company run by legendary value creator Ed Breen, who is leading a corporate transformation. In November, DuPont divested its most cyclical and lowest margin business segment, Mobility & Materials, to Celanese for $11 billion, or 14x 2023e EV/EBITDA. Following the divestiture, the improved DuPont trades at 11x 2023e EV/EBITDA, which represents a ~30% discount to its peer group.

We believe the company is laser-focused on closing this gap. First, $5 billion of the proceeds are being deployed to repurchase nearly 15% of its outstanding shares. The next significant catalyst for the stock is a potential settlement of PFAS-related multidistrict litigation in South Carolina, which remains an overhang on the stock even though DuPont’s PFAS liability was largely ring-fenced by the 2021 settlement with Chemours and Corteva. DuPont’s strong management team is eager to demonstrate the business quality of the new portfolio during the current period of economic volatility. We expect the combined catalysts of increased share repurchases, the pending resolution of legal claims, and the new business structure to drive meaningful value for shareholders.”