Bunge Limited (NYSE: BG): The Best-Of-Breed For Investing?


    T. Rowe Price Associates, Inc. (I. recently announced the acquisition of new stake in Bunge Limited (NYSE:BG). The institutional investor has increased its shareholding in the Consumer Defensive company by 6.08% to 15.06 million shares with purchase of 0.86 million shares. This fresh investment now brings its stake to 10.59% valued currently at $619.37 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.1 million to 14.92 million shares. And BlackRock Fund Advisors has lifted its position by 1.25% or 82507.0 shares – to 6.69 million shares.

    With over 2.27 million Bunge Limited (BG) shares trading Wednesday and a closing price of $45.17 on the day, the dollar volume was approximately $102.57 million. The shares have shown a positive weekly performance of 3.99% and its price on 07/28/20 gained nearly 1.28%. Currently, there are 141.90M common shares owned by the public and among those 137.00M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for BG have a consensus price objective of $58.44. The analysts have set the share’s price value over the next 12 months at a high of $74.00 and a low of $47.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Bunge Limited stock is 2.00 for the next 12 months. The average price target is 26.85% above its last price level and an upside to the estimated low will see the stock gain 3.89% over that period. But an upside of 38.96% will see the stock hit the forecast high price target while mean target price for the stock is $55.00.

    Insiders at the company have transacted a total of 138 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 119 of these insider trades were purchases, accounting for 536,535 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 10,893 shares.

    The top 3 mutual fund holders in Bunge Limited are T Rowe Price Mid Cap Value Fund, Vanguard Total Stock Market Index, and Vanguard Extended Market Index Fu. T Rowe Price Mid Cap Value Fund owns 6.74 million shares of the company’s stock, all valued at over $277.37 million. The company bought an additional 0.47 million shares recently to bring their total holdings to about 4.74% of the shares outstanding. Vanguard Total Stock Market Index sold 12209.0 shares to see its total holdings shrink to 3.86 million shares valued at over $158.96 million and representing 2.72% of the shares outstanding. Vanguard Extended Market Index Fu sold 44915.0 shares to bring its total holdings to over 2.02 million shares at a value of $83.28 million. Vanguard Extended Market Index Fu now owns shares totaling to 1.42% of the shares outstanding.

    Shares of Bunge Limited (NYSE: BG) opened at $44.95, up $0.35 from a prior closing price of $44.60. However, the script later closed the day at $45.18, up 1.30%. The company’s stock has a 5-day price change of 3.99% and 10.34% over the past three months. BG shares are trading -22.50% year to date (YTD), with the 12-month market performance down to -21.17% lower. It has a 12-month low price of $29.00 and touched a high of $59.65 over the same period. Currently, 2.38 million shares have been traded, compared to an average intraday trading volume of 1.53 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 7.97%, 11.39%, and -3.53% respectively.

    Institutional ownership of Bunge Limited (NYSE: BG) shares accounts for 82.90% of the company’s 141.90M shares outstanding. Mutual fund holders own 38.89%, while other institutional holders and individual stakeholders account for 42.66% and 10.25% respectively.

    It has a market capitalization of $6.40B and a beta (3y monthly) value of 0.85. The earnings-per-share (ttm) stands at -$11.16. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.02% over the week and 3.07% over the month.

    Analysts forecast that Bunge Limited (BG) will achieve an EPS of $1.32 for the current quarter, $1.31 for the next quarter and $4.02 for 2021. The lowest estimate earnings-per-share for the quarter is $1.01 while analysts give the company a high EPS estimate of $1.59. Comparatively, EPS for the current quarter was $1.52 a year ago. Earnings per share for the fiscal year are expected to decrease by -833.50%, and 50.97% over the next financial year. EPS should grow at an annualized rate of 10.10% over the next five years, compared to -39.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Bunge Limited (BG) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 2 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the BG, a number of firms have released research notes about the stock. Robert W. Baird stated their Outperform rating for the stock in a research note on May 13, 2020, with the firm’s price target at $46. Robert W. Baird coverage for the Bunge Limited (BG) stock in a research note released on March 31, 2020 offered a Neutral rating with a price target of $46. Goldman was of a view on December 10, 2019 that the stock is Buy, while Stephens gave the stock Overweight rating on October 08, 2019, issuing a price target of. JP Morgan on their part issued Neutral rating on August 02, 2018.


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