1. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 46
The Mosaic Company (NYSE:MOS) is an agriculture and fertilizer company that is headquartered in Tampa, Florida, with operations concentrated in the production of phosphate and potash crop nutrients.
At the end of December 2021, 46 hedge funds were bullish on The Mosaic Company (NYSE:MOS), up from 40 funds in the earlier quarter. Soroban Capital Partners is a leading shareholder of the company, with 4.3 million shares worth $172.70 million.
The Mosaic Company (NYSE:MOS) on December 17 declared a $0.1125 per share quarterly dividend, a 50% increase from its prior dividend of $0.0750. The dividend was distributed to shareholders on March 17.
Goldman Sachs analyst Adam Samuelson on March 15 upgraded The Mosaic Company (NYSE:MOS) to Buy from Neutral with an $83 price target. The analyst observed that the Russia/Ukraine conflict has the potential to be one of the most disruptive events across the food and agricultural supply chain in decades. He believes The Mosaic Company (NYSE:MOS) will be a beneficiary in the current environment, given expected “material fertilizer supply shocks” across nutrients, grain, and oilseed markets heading into 2023.
Here is what Ariel Focus Fund has to say about The Mosaic Company (NYSE:MOS) in its Q3 2021 investor letter:
“Our third quarter contributors generally fit this “happy family” description. Mosaic Company is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed Mosaic is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, Mosaic’s focus began to pay off. Strong U.S. crop prices as well as growing transportation costs for imported fertilizer from overseas mines have led to improved earnings expectations. Last December, analysts showed a mean estimate for Mosaic 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”
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