5 Best Sugar Stocks to Buy Now

2. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 48

Bunge Limited (NYSE:BG) is one of the oldest agri-business in the world, as it was founded in 1818 and is currently headquartered in St. Louis, Missouri, the United States. The company’s Sugar and Bioenergy segment is responsible for producing sugar and ethanol, alongside generating electricity from sugarcane.

Bunge Limited (NYSE:BG) has a Brazilian joint venture responsible for 32 million metric tons of sugar cane annually for use in ethanol that is estimated to be worth $1.96 billion in assets according to JP Morgan. Even if the firm does not sell its stake in the unit, the JV provides it with strong exposure to the Brazilian sugar cane and ethanol market and also opens to door for a significant cash infusion should an outside investor decides to buy the facilities. Bunge Limited (NYSE:BG) also pays a 62 cent dividend for a 2.58% yield.

48 out of the 895 hedge funds surveyed by Insider Monkey for their second quarter of 2022 holdings had held a stake in Bunge Limited (NYSE:BG). Wolfe Research set a $127 price target for the company in August 2022, highlighting that commodity prices and a strong cash flow yield will benefit the firm.

Bunge Limited (NYSE:BG)’s largest investor is Israel Englander’s Millennium Management which owns 1.9 million shares that are worth $176 million.

Old West Investment Management mentioned the company in its Q1 2022 investor letter. Here is what the fund said:

Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)