Agro Sector Ideas

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>>> FMC Corporation (NYSE:FMC) -


https://www.yahoo.com/now/11-best-farmland-agriculture-stocks-211441951.html


Number of Hedge Fund Holders: 28

Next on our list of the best agriculture stocks is FMC Corporation (NYSE:FMC), a Pennsylvania-based agricultural sciences company that provides crop protection, plant health, and professional pest and turf management products. On December 14, FMC Corporation (NYSE:FMC) declared a $0.58 per share quarterly dividend, a 9.4% increase from its prior dividend of $0.53. The dividend is payable on January 19, 2023 to shareholders of record on December 30.

On November 15, Loop Capital analyst Christopher Kapsch upgraded FMC Corporation (NYSE:FMC) to Buy from Hold with a price target of $149, up from $132. The earlier downgrade was due to his belief that the stock's valuation had gotten ahead of the story, but FMC Corporation (NYSE:FMC) has executed well, which helped derisk its earnings progression, the analyst told investors in a research note.

According to Insider Monkey’s third quarter database, 28 hedge funds were long FMC Corporation (NYSE:FMC) with collective stakes worth $496.5 million, compared to 29 funds in the last quarter worth $361.2 million. Ken Griffin’s Citadel Investment Group held the biggest stake in the company, consisting of 1.2 million shares worth $130 million.

Here is what Aristotle Capital Management Global Equity has to say about FMC Corporation (NYSE:FMC) in its Q1 2022 investor letter:

“FMC is an agricultural sciences company providing solutions for the protection of crops from different pests. Its products are used by farmers to ensure bugs, weeds and fungi do not negatively impact their harvest. Headquartered in Philadelphia, Pennsylvania, the company has a rich history dating back to 1883 when inventor John Bean set out to build a better insecticide spray pump. Over the decades, through acquisitions, FMC became a disparate collection of chemical companies. FMC has transformed itself to solely focus on crop chemicals, having acquired DuPont’s crop chemicals portfolio in 2017, and completed the separation of its lithium business in 2019. FMC is now one of the largest patented crop protection companies globally.

Its presence is balanced both geographically around the world, as well as from a crop exposure standpoint, with soybeans being the largest at roughly 20% of total revenue. In terms of products, FMC’s portfolio skews toward insecticides, which account for over 60% of its revenue. The remainder are herbicides (~25%), as well as fungicides and other crop chemicals (~15%).

High-Quality Business

Some of the quality characteristics we have identified for FMC include:

Attractive Valuation

We believe FMC’s current stock price is offered at a discount to our determination of the company’s intrinsic value given our estimates of both enhanced margins and higher earnings on a normalized basis.

Compelling Catalysts

Catalysts we have identified for FMC, which we believe will cause its stock price to appreciate over our three- to five-year investment horizon, include:

FMC is poised to benefit from its focus on crop chemicals, as yield gains are needed to support rising food consumption in emerging markets;

Continued margin improvements from its product pipeline. These new products should be particularly effective against insects, weeds and fungi that have grown resistant to traditional crop chemicals; and

Further cross-selling of FMC products to DuPont customers. For example, in Argentina, 78% of the customers it gained from the DuPont acquisition were unique to FMC, providing cross-selling opportunities.”

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>>> FMC Corporation (FMC), an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that include insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania. <<<




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