In this article, we discuss 5 GMO stocks to invest in now. If you want to see some more stocks in this selection, click 10 GMO Stocks to Invest in Now.
5. First Trust Indxx Global Agriculture ETF (NASDAQ:FTAG)
Number of Hedge Fund Holders: N/A
First Trust Indxx Global Agriculture ETF (NASDAQ:FTAG) is an exchange traded fund that has a portfolio consisting of the largest agriculture companies that are involved in enhancing agricultural yields. The companies specialize in agricultural technology, chemicals, fertilizers, seeds, irrigation equipment, and farm machinery.
The most notable holdings in First Trust Indxx Global Agriculture ETF (NASDAQ:FTAG)’s portfolio include Bayer Aktiengesellschaft (OTC:BAYRY), Corteva, Inc. (NYSE:CTVA), and BASF SE (OTC:BASFY), the leading GMO market players, among other prominent names in the sector. As of March 25, the fund’s total net assets equal $16.70 million.
4. Global X AgTech & Food Innovation ETF (NASDAQ:KROP)
Number of Hedge Fund Holders: N/A
Global X AgTech & Food Innovation ETF (NASDAQ:KROP) is an exchange traded fund that is focused on high growth agriculture companies specializing in agricultural technology and food security. The fund incepted in 2021, and current net assets amount to $6.43 million.
Global X AgTech & Food Innovation ETF (NASDAQ:KROP) invests in some of the top companies that deal in genetically modified crops, such as Bayer Aktiengesellschaft (OTC:BAYRY) and Corteva, Inc. (NYSE:CTVA), allowing investors sufficient exposure to GMO stocks.
3. AquaBounty Technologies, Inc. (NASDAQ:AQB)
Number of Hedge Fund Holders: 9
AquaBounty Technologies, Inc. (NASDAQ:AQB) is a Massachusetts-based biotechnology company that seeks to improve productivity in the commercial aquaculture industry across the United States and Canada. The company specializes in genetic, genomic, and fish nutrition activities.
AquaBounty Technologies, Inc. (NASDAQ:AQB) reported harvesting 91 tons of salmon in Q4 2021, an 8% improvement over the third quarter. To fulfill the rising market demand for its genetically engineered salmon, the company is starting construction of a next-generation 10,000 metric ton farm in Pioneer, Ohio. The farming facility will become operational in late 2023.
According to the fourth quarter database of Insider Monkey, 9 hedge funds were bullish on AquaBounty Technologies, Inc. (NASDAQ:AQB), up from 6 funds in the last quarter. Cathie Wood’s ARK Investment Management is the biggest shareholder of AquaBounty Technologies, Inc. (NASDAQ:AQB), with 5.3 million shares worth more than $11 million.
2. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company involved in cell programming, genetic engineering, and organism engineering. The company aims to improve the efficiency and sustainability of existing strains, in order to revolutionize agriculture and food ingredients.
On March 14, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) announced its plans to acquire FGen AG, a Swiss bioengineering company, that provides a screening platform built on nanoliter reactor technology. The acquisition will enable Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to expand into the genetic technology market, raising the possibility of discovering enzymes, pathways, and strains to create diverse products.
Cowen analyst Steven Mah initiated coverage of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) on March 2 with an Outperform rating and a $12 price target. Synthetic Biology, or “SynBio” is a high-growth vertical and Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) has a prominent competitive advantage in scalable genetic engineering, the analyst told investors in a bullish thesis.
Among the hedge funds tracked by Insider Monkey, 30 funds were bullish on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) at the end of December 2021, compared to 32 funds in the earlier quarter. The total stakes held in Q4 amounted to $4.2 billion.
1. Corteva, Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 42
Corteva, Inc. (NYSE:CTVA) is an Indiana-based agribusiness that uses germplasm to optimize crop yield. In late 2021, Corteva, Inc. (NYSE:CTVA) launched new genetically modified soy seeds in Brazil, where the company seeks to break Bayer Aktiengesellschaft (OTC:BAYRY)’s monopoly.
On March 22, Citi analyst P.J. Juvekar lifted the price target on Corteva, Inc. (NYSE:CTVA) to $66 from $59 and maintained a Buy rating on the shares. The Russia-Ukraine conflict has caused fertilizer prices to spike on supply concerns in already tight markets, and Corteva, Inc. (NYSE:CTVA) is clearly positioned to benefit, the analyst told investors in a research note.
Corteva, Inc. (NYSE:CTVA) is one of the top GMO stocks on Wall Street. In the fourth quarter of 2021, 42 hedge funds were bullish on Corteva, Inc. (NYSE:CTVA), compared to 41 funds in the prior quarter. Jeffrey Smith’s Starboard Value LP is the biggest shareholder of the company, with 8.90 million shares worth close to $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.”
You can also take a look at 10 Mid-Cap Stocks Hedge Funds Are Talking About and 10 Stocks to Buy Before the Next Recession.
