7 Best Organic Food and Farming Stocks to Buy

4. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 43

Corteva, Inc. (NYSE:CTVA) provides seed and crop protection solutions in the agriculture and food supply sectors. It operates through two segments: Seed, which focuses on advanced germplasm and traits to boost farm yields, and Crop Protection, which offers products for pest and disease management, including nitrogen management and seed-applied technologies.

In Q2 2024, Corteva, Inc. (NYSE:CTVA) reported net sales of $6.1 billion and organic sales of $6.2 billion. This growth, driven by strong Seed performance and a modest rebound in Crop Protection volumes, marks an improvement from last year. The operating EBITDA margin increased by 248 basis points to 31.4%, highlighting the effectiveness of Corteva’s strategy to enhance its proprietary technologies and operational efficiency.

Notably, Corteva’s Seed business saw a 4% rise in organic sales for the first half of 2024, bolstered by strong pricing and broad gains. The launch of Pioneer brand Z-series soybeans, with a 2.7 bushel per acre yield advantage, has strengthened the company’s market leadership in North America’s corn and soybean sectors.

Corteva, Inc. (NYSE:CTVA) reported strong cash flow in the first half of the year. Free cash flow is expected to be approximately $1.75 billion, reflecting a conversion rate of around 50% of EBITDA. Additionally, it announced a 6.25% increase in its annual dividend, underscoring its confidence in its financial stability and future prospects.

On March 21, 2024, Corteva Agriscience launched Corteva Catalyst, a new investment arm within its R&D department aimed at accelerating the development of agricultural technologies. This hub will focus on investing in startups aligned with the company’s research priorities.

Corteva’s share price surged 7.52% in the past month and 15.68% year-to-date, fueled by strong financial performance, particularly from the seed segment.

However, the company’s future outlook includes some challenges, with lowered sales expectations due to product availability concerns, higher interest rates, and farmers deferring purchases. Crop Protection sales are expected to be impacted by these factors, signaling potential pressure on future revenue growth.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 43 hedge funds have invested $1.1 billion in the company. Among these, Harris Associates has bought 14.2 million shares with a total value of $764 million.