5 Fertilizer Stocks to Buy Today

2. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 42

Corteva, Inc. (NYSE:CTVA) was incorporated in 2018 and is headquartered in Indianapolis, Indiana, providing herbicides, insecticides, and nitrogen stabilizers. The company’s seed and crop protection products seek to optimize yields for farmers. 

Mizuho analyst Christopher Parkinson raised the firm’s price target on Corteva, Inc. (NYSE:CTVA) to $60 from $55 on February 4 and kept a ‘Buy’ rating on the shares. The analyst remained “bullish on the CTVA story.”

Corteva, Inc. (NYSE:CTVA) published its Q4 results on February 2, reporting GAAP earnings per share of $0.22, topping market estimates by $0.20, while its $3.48 billion in revenue outperformed analysts’ predictions by roughly $30 million.

Among the hedge funds tracked by Insider Monkey, 42 funds reported owning stakes in Corteva, Inc. (NYSE:CTVA) as of December 31, compared to 41 funds in the prior quarter. Jeffrey Smith’s Starboard Value LP is the largest shareholder of Corteva, Inc. (NYSE:CTVA), with 8.90 million shares worth approximately $421 million.

Here is what Rhizome Partners had to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2021 investor letter:

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”