California Retirement Fund Reduces Stake in Bunge Global by 4.5%

The California Public Employees Retirement System (CalPERS) has reduced its investment in Bunge Global SA, a major agribusiness and food company, by 4.5% during the second quarter of 2023. Following the sale of 17,958 shares, CalPERS now holds 384,636 shares valued at approximately $30.9 million as of the end of the quarter, according to Holdings Channel.

Several other institutional investors have also adjusted their stakes in Bunge Global. Geode Capital Management LLC increased its holdings by 2.3%, bringing its total to 3,535,869 shares worth around $282.7 million. Additionally, Dimensional Fund Advisors LP expanded its position significantly by 34.6%, acquiring 859,733 shares to reach a total of 3,346,709 shares valued at approximately $255.8 million.

Invesco Ltd. also increased its stake by 3.8%, now owning 3,329,577 shares valued at about $254.4 million. LSV Asset Management raised its position by 2.1%, holding 2,135,862 shares valued at $171.5 million. Moreover, Norges Bank initiated a new position in Bunge Global during the second quarter, investing around $149.4 million. Overall, institutional investors own approximately 86.23% of Bunge Global’s stock.

Insider Transactions and Recent Performance

In related news, on November 21, 2023, Christos Dimopoulos, Vice President of Bunge Global, sold 25,300 shares at an average price of $94.37, resulting in a total transaction value of $2.39 million. Following this sale, Dimopoulos holds 104,537 shares, reflecting a 19.49% decrease in his ownership. The transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).

Bunge Global’s stock price saw a minor decline of 0.1% recently. The company’s latest earnings report, released on November 5, 2023, indicated an earnings per share (EPS) of $2.27, surpassing analysts’ expectations of $2.23 by $0.04. The firm reported a revenue of $22.16 billion for the quarter, which, despite being below the consensus estimate of $22.46 billion, represented a substantial year-over-year increase of 71.6%.

Analyst Ratings and Future Outlook

Bunge Global has attracted significant attention from analysts, with various firms updating their price targets. Morgan Stanley set a target price of $95.00 on October 27, 2023. Meanwhile, JPMorgan Chase & Co. raised their price objective from $107.00 to $109.00, maintaining an “overweight” rating. Citigroup reaffirmed a “buy” rating, while Zacks Research upgraded Bunge Global from a “hold” to a “strong-buy” rating.

CICC Research also increased their price target from $90.00 to $110.00. According to data from MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average price target of $106.00.

Bunge Global SA operates globally in the agribusiness and food sectors, functioning through four primary segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The company is involved in the purchase, storage, transportation, processing, and sale of agricultural commodities, primarily focusing on oilseeds like soybeans and grains such as wheat and corn.