In this article, we will take a look at the 5 best potash stocks to buy. To skip our analysis of the recent trends, and market activity, you can go directly to see the 10 Best Potash Stocks to Buy.
5. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 24
Based in Melbourne, Australian, BHP Group (NYSE:BHP) is a leading mining company with operations across copper, metallurgical coal, nickel, iron ore, and potash. The company produced 253 million tons of iron ore, 1.6 million tons of copper, 42.8 million tons of coal, and 77 thousand tons of nickel in FY 2022.
BHP Group (NYSE:BHP) has invested in a potash mining project located nearly 140 km east of Saskatoon, Canada. The Jansen Stage 1 project, with $5.7 billion investment by BHP Group (NYSE:BHP), is expected to commence production by the end of 2026 with a production capacity of 4.35 million tons of potash per year.
According to the Insider Monkey data on 943 leading hedge funds, 24 hedge funds were long BHP Group (NYSE:BHP) shares as of Q1 2023. Ken Fisher’s Fisher Asset Management was the largest hedge fund shareholder with ownership of 18.1 million shares valued at $1.1 billion.
4. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 32
Saskatoon, Canada-based Nutrien Ltd. (NYSE:NTR) is the largest producer of potash by capacity and one of the largest producers of nitrogen and phosphate globally. With a history that goes back nearly 50 years, the company has nearly 25,000 employees and produces and distributes nearly 27 million tons of potash, nitrogen, and phosphate products.
Nutrien Ltd. (NYSE:NTR) was formed through the merger of Agrium Inc. and Potash Corporation of Saskatchewan Inc., completed in January 2018. The company has total operational capacity to produce 20.6 million tons of potash, 7.1 million tons of nitrogen-based products, and 1.7 million tons of phosphate.
Nutrien Ltd. (NYSE:NTR) has increased regular cash dividend payouts on its common stock since the merger in 2018. The dividends have grown at a CAGR of 5.8% since that time and the company currently pays a quarterly cash dividend of $0.53 per common share.
As of Q1 2023, Nutrien Ltd. (NYSE:NTR) shares were held by 32 prominent hedge funds with the total shares held by these hedge funds valued at $350 million. Notable hedge fund shareholders included First Eagle Investment Management, Renaissance Technologies, and D E Shaw, among others.
3. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 32
Philadelphia, Pennsylvania-based FMC Corporation (NYSE:FMC) is a global agricultural sciences company providing products and solutions across biologicals, crop nutrition, digital and precision agriculture. It employs nearly 6,600 personnel at more than 100 sites worldwide.
On May 1, FMC Corporation (NYSE:FMC) released its financial results for Q1 2023. It generated a revenue of $1.34 billion and a net income of $196 million which translates to a normalized EPS of $1.77. The company currently pays a regular quarterly dividend of $0.58 per share.
Following the earnings release, Wells Fargo lowered the price target on FMC Corporation (NYSE:FMC) shares to $142 from $148 and maintained an ‘Overweight’ rating for the shares. This represents a potential upside of nearly 37.4%, based on the share price as of July 6.
FMC Corporation (NYSE:FMC) was a common component of the portfolios of 32 hedge funds out of the 943 tracked by Insider Monkey. Notable investors included Glenview Capital, Cardinal Capital, and Citadel Investment Group, among others.
2. Archer Daniels Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 39
Founded in 1902, Archer Daniels Midland Company (NYSE:ADM), commonly known as ADM, is a major player in the food industry, with a diverse portfolio of products including oils, sweeteners, starches, proteins, and feed ingredients. The company engages in every aspect of the food and feed production process, from sourcing and processing raw materials to delivering finished products to customers. ADM is also involved in global commodity trading of crops like corn, soybeans, and wheat.
On April 25, Archer Daniels Midland Company (NYSE:ADM) released its financial results for Q1 2023. Its revenue increased by 2% y-o-y to $24.1 billion while net income surged by 11% y-o-y to $1.1 billion. Earlier in January, the company announced a 12.5% increase in its quarterly dividend to $0.45 per share.
On June 21, Roth MKM analyst Brian Wright initiated coverage of Archer Daniels Midland Company (NYSE:ADM) with a price target of $92 and a ‘Buy’ rating for the shares.
As of Q1 2023, Archer Daniels Midland Company (NYSE:ADM) shares were held by 39 hedge funds with a total value of $751 million. Cliff Asness’ AQR Capital Management was its largest hedge fund shareholder with ownership of 1.9 million shares valued at $153 million.
1. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 40
Tampa, Florida-based The Mosaic Company (NYSE:MOS) is a global leader in the crop nutrient industry, producing and delivering phosphate and potash-based nutrients on a massive scale. The company engages in every step of the production process, from mining to production.
The Mosaic Company (NYSE:MOS) operates through production facilities across 9 countries, serving customers in more than 40 countries worldwide. The company employs more than 13,000 personnel globally and has annual production capacity of 25 million tons of finished concentrated phosphate and potash. It sold 1.6 million finished product tons of potash during April-May period which generated revenues of $672 million.
On June 8, BofA analyst Steve Byrne lowered the price target on The Mosaic Company (NYSE:MOS) shares to $50 from $60 but maintained a ‘Buy’ rating for the shares.
As of Q1 2023, The Mosaic Company (NYSE:MOS) was the best potash stock to buy based on hedge fund sentiment as 40 of them held its shares with a total value of $463 million. Cliff Asness’ AQR Capital Management was the largest hedge fund shareholder with ownership of 3.7 million shares valued at $165 million.
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