On September 12, 2023, it was reported that Alyeska Investment Group L.P. has reduced its stake in Bunge Limited (NYSE:BG) by 7.7% during the first quarter of the year. According to the company’s most recent Form 13F filing with the Securities and Exchange Commission, Alyeska Investment Group L.P. now owns approximately 0.55% of Bunge, equivalent to 834,866 shares worth $79,746,000 after selling 69,483 shares.
Bunge is a well-known basic materials company that recently released its earnings results on August 2nd. The company surpassed analysts’ expectations, reporting earnings per share (EPS) of $3.72 for the quarter, surpassing consensus estimates of $2.69 by $1.03. Additionally, Bunge achieved a net margin of 3.09% and a return on equity of 20.12%. However, its revenue for the quarter came in at $15.05 billion compared to analysts’ projected revenue of $16.35 billion. It is important to note that Bunge’s revenue experienced a decline of 16.1% on a year-over-year basis.
Equities research analysts have offered their insights on Bunge’s Stock performance recently as well. StockNews.com initiated coverage on Bunge and provided a “hold” rating in its research note published on August 17th. Morgan Stanley increased their target price for Bunge from $105 to $114 and assigned an “equal weight” rating in a research report released on August 7th. Conversely, Robert W. Baird reduced their price target from $115 to $110 in their report issued on June 14th.
Despite these varying opinions among research analysts, UBS Group showed optimism and raised its price target for Bunge from $133 to $141 while giving it a “buy” rating in a report released on August 7th. Another positive outlook came from Roth Mkm, which initiated coverage on Bunge on June 22nd and issued a “buy” rating with a price target of $138.
Overall, Bloomberg.com data indicates that Bunge currently holds a consensus rating of “Moderate Buy” based on three analysts’ hold ratings and five buy ratings. The average target price for the stock is estimated to be $128.29.
In conclusion, Alyeska Investment Group L.P. has reduced its position in Bunge Limited, a basic materials company. Despite the reduction in shares, Bunge reported promising earnings results but experienced a decline in revenue compared to analysts’ expectations. Analysts have offered mixed opinions regarding their projections for Bunge’s performance, as seen through varying bullish and bearish ratings assigned to the company’s stock.
Institutional Investors Show Confidence in Bunge Limited’s Future Prospects
Bunge Limited, a leading global agribusiness and food company, has recently seen activity from institutional investors that have either increased or decreased their stakes in the company. Vanguard Group Inc., for instance, has boosted its position in Bunge by 5.2% during the first quarter of this year. The renowned asset management firm now owns 14,105,841 shares of Bunge’s stock, with a total value of $1,563,069,000. Similarly, State Street Corp also increased its position in Bunge by 6.4% during the same period.
FIL Ltd is another institutional investor that showed confidence in Bunge by increasing its position by 3.7% in the first quarter. They currently own 2,931,841 shares of the company’s stock worth $280,049,000. Bank of New York Mellon Corp also contributed to this trend by raising its stake in Bunge by 12% during the first quarter.
Furthermore, Norges Bank purchased a new stake in Bunge during the fourth quarter of last year for approximately $186,143,000. As it stands now, hedge funds and other institutional investors collectively hold 84.92% of the company’s stock.
In unison with these developments came an announcement regarding insider trading at Bunge. On August 16th, insider Christos Dimopoulos sold 20,000 shares of the firm’s stock at an average price of $111.89 per share. The total value of this transaction amounted to $2,237,800.00. Following this sale, Dimopoulos holds a direct ownership interest in 73,291 shares valued at approximately $8 million.
Analyzing BG’s performance on the market reveals that on Tuesday morning shares opened at $114.86—an increase from previous sessions—thus continuing their upwards trajectory throughout recent weeks. The fifty-day moving average price stands steady at $109.06, while the 200-day moving average price lingers at $99.20. This indicates positive momentum for the stock.
Bunge has a broad market capitalization of $17.30 billion, showcasing its substantial presence within the industry. Moreover, it maintains a relatively low price-to-earnings ratio of 8.88, suggesting that investors may perceive the company as undervalued compared to its peers.
While Bunge’s stock has experienced some volatility in the past year, fluctuating between a low of $80.41 and a high of $116.59, it appears to be moving in a positive direction overall due to its beta of 0.67—a measurement reflecting its sensitivity to market fluctuations.
Currently, Bunge Limited has a debt-to-equity ratio of 0.38, indicating that it relies more on equity financing rather than debt financing for its operations—a positive sign for investors concerned about financial stability. Additionally, the company maintains strong liquidity with a current ratio of 2.07 and quick ratio of 1.01.
Overall, recent moves from institutional investors signify their belief and confidence in Bunge’s future prospects in the agribusiness and food industry—an opinion reinforced by positive market indicators in terms of share performance and financial metrics such as debt-to-equity ratio and liquidity ratios. Both investors and stakeholders eagerly await further developments from this global powerhouse.
The post Alyeska Investment Group L.P. Reduces Stake in Bunge Limited: Analyst Opinions Vary appeared first on Best Stocks.
