In this article, we discuss the value hedge funds winning in 2022 and the 5 stocks that helped them do it. If you want to read about some more value stocks, go directly to Value Hedge Funds are Winning in 2022 Thanks to These 15 Stocks.
5. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
Number of Hedge Fund Holders: 30
PE Ratio: 4.14
YTD Increase in Share Price as of June 16: 142.26%
Alpha Metallurgical Resources, Inc. (NYSE:AMR) operates as a mining firm. On May 5, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $20.52, beating market estimates by $1.48. The revenue over the period was $1.07 billion, up 177% compared to the revenue over the same period last year and beating analyst expectations by more than $125 million.
On May 6, B. Riley analyst Lucas Pipes maintained a Buy rating on Alpha Metallurgical Resources, Inc. (NYSE:AMR) stock and raised the price target to $181 from $155, appreciating the strong first quarter results of the company.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Hudson Bay Capital Management is a leading shareholder in Alpha Metallurgical Resources, Inc. (NYSE:AMR) with 859,597 shares worth more than $113 million.
4. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
PE Ratio: 15.17
YTD Increase in Share Price as of June 16: 16.87%
Archer-Daniels-Midland Company (NYSE:ADM) makes and sells agricultural commodities and related products. The stock has climbed in the past few days after US President Joe Biden announced a new $700 million aid program for biofuel producers that is set to benefit Archer-Daniels. Under the program, the company is set to receive around $50 million from the government to cover losses at 45 facilities across the country.
On April 27, Baird analyst Ben Kallo maintained an Outperform rating on Archer-Daniels-Midland Company (NYSE:ADM) stock and raised the price target to $108 from $73, noting the firm was benefiting from dislocation across the agriculture supply chain.
At the end of the first quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $625 million in Archer-Daniels-Midland Company (NYSE:ADM), compared to 41 in the preceding quarter worth $481 million.
3. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 46
PE Ratio: 6.51
YTD Increase in Share Price as of June 16: 50.32%
APA Corporation (NASDAQ:APA) is an oil and gas exploration and production firm. On May 4, the firm posted earnings for the first quarter of 2022, reporting a revenue of $2.6 billion, up close to 43% compared to the revenue over the same period last year and beating analyst expectations by $230 million. The firm had free cash flow of $675 million during the first three months of 2022, up 39% from the previous quarter.
On June 14, Barclays analyst Jeanine Wai maintained an Overweight rating on APA Corporation (NASDAQ:APA) stock and raised the price target to $62 from $54, noting the overall sentiment around the oil and gas sector was constructive.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in APA Corporation (NASDAQ:APA) with 19.5 million shares worth more than $806 million.
In its Q1 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and APA Corporation (NASDAQ:APA) was one of them. Here is what the fund said:
“Our oil holding, APA Corporation (NASDAQ:APA) (+54%) was one of our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
2. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 55
PE Ratio: 8.33
YTD Increase in Share Price as of June 16: 7.37%
Bunge Limited (NYSE:BG) operates as an agribusiness and food company. The company has a solid track record in the dividend space with a history stretching to more than two decades. On May 12, the firm declared a quarterly dividend of $0.625 per share, an increase of 19% from the previous dividend of $0.525 per share. The forward yield was 2.28%. The dividend is payable to shareholders by early September.
On April 28, investment advisory Credit Suisse maintained an Outperform rating on Bunge Limited (NYSE:BG) stock and raised the price target to $140 from $120. Analyst Robert Moskow issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Bunge Limited (NYSE:BG) with 1.6 million shares worth more than $183 million.
In its Q1 2022 investor letter, Old West Investment Management, an asset management firm, highlighted a few stocks and Bunge Limited (NYSE:BG) was one of them. Here is what the fund said:
“Bunge Limited (NYSE:BG) (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 Bunge Limited (NYSE: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)
1. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 67
PE Ratio: 11.88
YTD Increase in Share Price as of June 16: 27.60%
CF Industries Holdings, Inc. (NYSE:CF) is a fertilizer and agricultural chemicals firm. On June 8, the company announced that it would be shutting down operations at the Ince manufacturing facility in the United Kingdom as part of a larger restructuring of the firm in the country that will result in a shifting of manufacturing operations to the Billingham plant, the largest ammonia, ammonium nitrate and carbon dioxide facility in the UK.
On May 31, Piper Sandler analyst Charles Neivert maintained an Overweight rating on CF Industries Holdings, Inc. (NYSE:CF) stock and raised the price target to $132 from $120, noting that grain prices will “both remain elevated and reset the standard for midcycle levels going forward”.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Soroban Capital Partners is a leading shareholder in CF Industries Holdings, Inc. (NYSE:CF) with 2.6 million shares worth more than $269 million.
You can also take a peek at 10 High-Yield Dividend Stocks with Payout Ratio Less than 55% and 10 Stocks to Buy Today According to British Billionaire David Harding.
