In this article, we discuss 5 wheat stocks to buy now. If you want our detailed analysis of wheat and agricultural commodities amid the Russia-Ukraine war, click 10 Wheat Stocks to Buy Now.
5. Teucrium Wheat (NYSE:WEAT)
Number of Hedge Fund Holders: N/A
Teucrium Wheat (NYSE:WEAT) is an exchange traded fund that allows exposure to wheat futures, with net assets exceeding $387 million as of March 20, 2022. Since wheat prices are not correlated with U.S. equities, Teucrium Wheat (NYSE:WEAT) is an attractive option for portfolio diversification in a hot commodities market.
Teucrium Wheat (NYSE:WEAT) was established in September 2011, and offers an expense ratio of 1.14%. The fund’s administrator is U.S. Bank Global Fund Services.
4. MGP Ingredients, Inc. (NASDAQ:MGPI)
Number of Hedge Fund Holders: 17
Headquartered in Atchison, Kansas, MGP Ingredients, Inc. (NASDAQ:MGPI) produces distilled spirits and food ingredients. The Ingredient Solutions segment of MGP Ingredients, Inc. (NASDAQ:MGPI) provides specialty wheat starches and wheat proteins for food applications.
On February 24, MGP Ingredients (NASDAQ:MGPI) declared a quarterly dividend of $0.12 per share. The dividend is payable on March 25, to shareholders of record on March 11.
Lake Street analyst Ben Klieve initiated coverage of MGP Ingredients (NASDAQ:MGPI) on February 22 with a ‘Buy’ rating and a $100 price target. According to the analyst, MGP Ingredients (NASDAQ:MGPI) is a “compelling investment” for those who seek undervalued, branded spirit opportunities and those looking to capitalize on the plant-based protein movement without the risk of directly investing in specific brands.
A total of 17 hedge funds held long positions in MGP Ingredients (NASDAQ:MGPI) on December 31, up from 13 funds in the prior quarter. Arrowstreet Capital is the leading shareholder of MGP Ingredients (NASDAQ:MGPI) among those 17 funds, owning 165,405 shares worth over $14 million.
3. Adecoagro S.A. (NYSE:AGRO)
Number of Hedge Fund Holders: 22
Adecoagro S.A. (NYSE:AGRO) is a Luxembourg-based agro-industrial company that cultivates and sells grains such as wheat, corn, soybeans, peanut, cotton, and sunflowers. The company is also involved in dairy operations and land transformation activities.
Adecoagro S.A. (NYSE:AGRO) disclosed Q4 non-GAAP EPS of $0.51 on March 14, while the company reported revenue of $312.76 million, up 34.0% year-over-year. Amid the Russia-Ukraine war, the company’s stock has gained 36.44% over the last month.
Morgan Stanley analyst Javier Martinez de Olcoz Cerdan upgraded Adecoagro S.A. (NYSE:AGRO) to ‘Overweight’ from ‘Equal Weight’ on October 18, with a price target of $12, up from $9.
According to the fourth quarter database of Insider Monkey, 22 hedge funds were bullish on Adecoagro S.A. (NYSE:AGRO), up from 12 funds in the prior quarter. The total stakes held in Q4 amounted to $266.4 million. William Duhamel’s Route One Investment Company is a major shareholder of the company, with 14.3 million shares worth more than $110 million.
2. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 38
Bunge Limited (NYSE:BG) was founded in 1818 and is headquartered in St. Louis, Missouri, operating as an agribusiness and food company worldwide. The company sells agricultural commodities such as wheat, corn, soybeans, rapeseed, canola, and sunflower seeds.
On March 14, Barclays analyst Benjamin Theurer raised his price target on Bunge Limited (NYSE:BG) to $120 from $110 and kept an ‘Overweight’ rating on the shares. The analyst expects “another solid year” for Bunge Limited (NYSE:BG) after the company posted its 2022 guidance, predicting earnings per share of at least $9.50.
Bunge Limited (NYSE:BG) declared a $0.525 per share quarterly dividend on February 24, in line with previous. The dividend is payable on June 2, for shareholders of record on May 19.
Bunge Limited (NYSE:BG), a defensive food crisis play, has gained 36% in the last six months. In the fourth quarter of 2021, 38 hedge funds were bullish on Bunge Limited (NYSE:BG), compared to 37 funds in the earlier quarter. Candlestick Capital Management owns the biggest position in Bunge Limited (NYSE:BG) among that group of funds, with more than 1 million shares worth $95.6 million.
1. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 41
Archer-Daniels-Midland Company (NYSE:ADM) procures and distributes agricultural commodities, including corn, wheat, milo, oats, and barley, among others. The company’s stock has gained close to 40% in the last six months, and remains a winner in its category amid the Ukraine crisis and resultant demand for commodities.
Barclays analyst Benjamin Theuer raised the firm’s price target on Archer-Daniels-Midland Company (NYSE:ADM) to $88 from $80 on March 4 and kept an ‘Overweight’ rating on the shares. The analyst told investors that he sees upside in the shares, and that Archer-Daniels-Midland Company (NYSE:ADM) will benefit both from short-term disruptions and as well as its strong long-term fundamentals.
On January 25, Archer-Daniels-Midland Company (NYSE:ADM) reported its Q4 results, posting earnings per share of $1.50, above consensus by $0.13. The company’s revenue for the period amounted to $23.09 billion, up 28.43% year-over-year, and outperforming estimates by $2.86 billion.
Of the 41 hedge funds in our database that were bullish on Archer-Daniels-Midland Company (NYSE:ADM) on December 31, Ric Dillon’s Diamond Hill Capital was the leading shareholder of the company, with 5.70 million shares worth approximately $386 million.
You can also take a look at 10 Cheap Stocks Hedge Funds Are Talking About and 10 Stocks to Buy Before the Next Recession.
