3. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 46
The Mosaic Company (NYSE:MOS) is a Florida-based company that develops and sells phosphate and potash crop nutrients and fertilizers across North America and international markets. The Mosaic Company (NYSE:MOS) has benefited greatly from the Russian war on Ukraine, as the stock has gained almost 47% in the last month.
On March 22, The Mosaic Company (NYSE:MOS) disclosed Phosphates revenue for January and February of $873 million, up 37.7% year-over-year, Potash revenue of $604 million, up 104.8% year-over-year, and Mosaic Fertilizantes revenue of $870 million, up 66.4% compared to the same period last year. The sales volumes declined as shipments were impacted by rail delays in Canada and Florida.
The Mosaic Company (NYSE:MOS) declared an $0.1125 per share quarterly dividend on December 17, a 50% increase from its prior dividend of $0.075. The dividend was distributed on March 17.
Goldman Sachs analyst Adam Samuelson upgraded The Mosaic Company (NYSE:MOS) to ‘Buy’ from ‘Neutral’ on March 15, with an $83 price target. According to the analyst, the Russia/Ukraine conflict has the potential to be one of the most disruptive events across the food and agricultural supply chain in decades, and he believes The Mosaic Company (NYSE:MOS) will be a beneficiary in the current environment.
Soroban Capital Partners is a significant shareholder of the company, with 4.3 million shares worth $172.70 million. Overall, 46 hedge funds were bullish on The Mosaic Company (NYSE:MOS) at the end of the fourth quarter.
Here is what Ariel Focus Fund had to say about The Mosaic Company (NYSE:MOS) in its Q3 2021 investor letter:
“Our third quarter contributors generally fit this “happy family” description. Mosaic Company is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed Mosaic is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, Mosaic’s focus began to pay off. Strong U.S. crop prices as well as growing transportation costs for imported fertilizer from overseas mines have led to improved earnings expectations. Last December, analysts showed a mean estimate for Mosaic 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”
