In this article, we discuss 5 plant-based food stocks to buy and hold for the next 10 years. If you want to see more stocks from this list, check out 10 Plant-Based Food Stocks to Buy and Hold for the Next 10 Years.
5. Local Bounti Corporation (NYSE:LOCL)
Number of Hedge Fund Holders: 14
Local Bounti Corporation (NYSE:LOCL) grows fresh greens and herbs in the United States, which it sells to food retailers and food service distributors. Local Bounti Corporation (NYSE:LOCL) was founded in 2018 and is headquartered in Hamilton, Montana. On June 27, the stock climbed 8% in premarket trading as the company joined the Russell 2000 Index.
Morgan Stanley analyst Pamela Kaufman initiated coverage of Local Bounti Corporation (NYSE:LOCL) on April 20 with an ‘Equal Weight’ rating and $8.50 price target. The company’s differentiated agriculture technology has the potential to conquer the traditional farming market and she expects a 125% three-year revenue compound annual growth rate as production scales, but contended that this potential is factored into the stock at current levels.
According to Insider Monkey’s Q1 data, 14 hedge funds were long Local Bounti Corporation (NYSE:LOCL), with collective stakes exceeding $10 million, compared to 18 funds in the prior quarter, holding stakes in the company valued at $6 million.
4. Benson Hill, Inc. (NYSE:BHIL)
Number of Hedge Fund Holders: 26
Benson Hill, Inc. (NYSE:BHIL) is a food technology company that uncovers the natural genetic diversity of plants. The company uses data, artificial intelligence, and crop science to deliver optimized food, ingredients, and feed products. On May 19, Barclays analyst Benjamin Theurer reiterated an ‘Overweight’ rating on Benson Hill, Inc. (NYSE:BHIL) and lowered the firm’s price target on the stock to $5 from $8. The analyst remains bullish on Benson Hill, Inc. (NYSE:BHIL)’s medium to long-term prospects. He forecasts accelerated sales growth after the company’s recent acquisitions to further enhance its integrated solutions.
Among the hedge funds tracked by Insider Monkey, 26 funds reported owning stakes in Benson Hill, Inc. (NYSE:BHIL) at the end of Q1 2022, up from 23 funds in the earlier quarter. The collective stakes increased to $36.8 million in the first quarter from $27.6 million in the earlier quarter.
3. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company that runs a platform for cell programming, serving specialty chemicals, agriculture, food, consumer, and pharmaceuticals markets. The company uses genetic engineering to enhance the efficiency and sustainability of agriculture and food ingredients. On June 16, Jefferies analyst Laurence Alexander maintained a ‘Buy’ rating on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) and lowered the price target on the shares to $4.35 from $11.50. As per the analyst, chemical valuations usually lead earnings cuts by 6 to 9 months and are likely to shrink more before the rate cycle ends, noting that a longer rate hike cycle is possible. However, the company has potential to grow in the food innovation segment.
According to Insider Monkey’s data, 30 hedge funds were bullish on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) at the end of Q1 2022, with combined stakes of $990.3 million.
2. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 37
General Mills, Inc. (NYSE:GIS) manufactures and sells branded consumer foods worldwide. The company markets its products under the Annie’s, Betty Crocker, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Häagen-Dazs, Lucky Charms, Pillsbury, Trix, and Wheaties brands, among others. General Mills, Inc. (NYSE:GIS)’s plant-based investments include No Cow protein bars, Good Catch vegan seafood, and Kite Hill’s yogurt and cheese.
On June 29, General Mills, Inc. (NYSE:GIS) declared a $0.54 per share quarterly dividend, a 5.9% increase from its prior dividend of $0.51. The dividend is payable on August 1, to shareholders of the company as of July 8. On July 13, the stock delivered a dividend yield of 2.82%.
RBC Capital analyst Nik Modi on July 1 raised the price target on General Mills, Inc. (NYSE:GIS) to $68 from $66 and maintained a ‘Sector Perform’ rating on the shares. The company reported another quarter of solid performance, and its FY23 guide was driven by greater pricing offsetting slowing volumes and a rise in inflation, the analyst told investors. The analyst added that he sees General Mills, Inc. (NYSE:GIS) executing well in a tough environment, even though the quarter did show some “volume softness”.
According to Insider Monkey’s data, 37 hedge funds were bullish on General Mills, Inc. (NYSE:GIS) at the end of Q1 2022, up from 36 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading stakeholder of the company, with 4.4 million shares worth $300 million.
Here is what Miller Howard Investments had to say about General Mills, Inc. (NYSE:GIS) in its Q3 2021 investor letter:
“Other stocks providing balance against our cyclicals include General Mills (GIS). They pay good dividends supported by stable business models and have a conservative amount of debt. The dividend yield on our Income-Equity Strategy is now 3.6%. The No-MLP version yield is 3.5%. Both yields are roughly 2.5 times the yield on the S&P 500 Index, and we are seeing dividend increases across our portfolios. Our income advantage over the broad market is significant, yet we also believe that we have enough cyclical tilt to perform well in a recovery. We continue to monitor a variety of risks, with inflation and COVID-19 trends being most important.”
1. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 55
Bunge Limited (NYSE:BG) was founded in 1818 and is headquartered in St. Louis, Missouri. It is an agribusiness and food company, operating through Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy segments. The company sells soybeans, rapeseed, canola, sunflower seeds, wheat, and corn. Bunge Limited (NYSE:BG) on May 12 declared a quarterly dividend of $0.625 per share, a 19% increase from its prior dividend of $0.525. The dividend is payable on September 2, to shareholders of record on August 19. Bunge Limited (NYSE:BG)’s dividend yield on July 13 stood at 2.85%.
On July 7, JPMorgan analyst Thomas Palmer upgraded Bunge Limited (NYSE:BG) to ‘Overweight’ from ‘Neutral’ with a price target of $106, down from $130, which shows 25% upside from present levels. The analyst said short-term optimistic catalysts could be forthcoming based on Bunge Limited (NYSE:BG)’s Q2 earnings and a rebound in agriculture trends. He observed that Bunge Limited (NYSE:BG) shares have mostly found downside support at 1.3-times price-to-book value, or $81 per share.
According to Insider Monkey’s data, 55 hedge funds were long Bunge Limited (NYSE:BG) at the end of Q1 2022, up from 38 funds in the preceding quarter. Israel Englander’s Millennium Management is the leading shareholder of the company, with 1.65 million shares worth $183.6 million.
Here is what Old West Investment Management had to say about Bunge Limited (NYSE:BG) in its Q1 2022 investor letter:
“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)
You can also take a look at 10 Latest Stocks to Consider in the Portfolio of Nancy Pelosi and 11 Best Dividend-Paying Stocks to Buy Now.
