California Pension Fund Reduces Stake in Bunge Global by 4.5%

California Public Employees Retirement System (CalPERS) has decreased its stake in Bunge Global SA (NYSE: BG) by 4.5% during the second quarter of 2023. According to Holdings Channel, the retirement system now holds 384,636 shares of the agribusiness and food company after selling 17,958 shares in the recent quarter. As of the end of June 2023, CalPERS’ holdings in Bunge Global were valued at approximately $30.9 million.

Several other institutional investors have also adjusted their positions in Bunge Global. For instance, Geode Capital Management LLC raised its holdings by 2.3%, acquiring an additional 80,082 shares to reach a total of 3,535,869 shares worth $282.7 million. Dimensional Fund Advisors LP increased its stake significantly by 34.6% in the first quarter, bringing its total to 3,346,709 shares valued at $255.8 million after purchasing an additional 859,733 shares. Invesco Ltd. also expanded its position by 3.8%, now owning 3,329,577 shares valued at $254.4 million following the acquisition of 122,931 shares.

LSV Asset Management increased its stake by 2.1% during the second quarter, now holding 2,135,862 shares worth $171.5 million. Additionally, Norges Bank made a notable entry by purchasing a new position valued at approximately $149.4 million. Overall, hedge funds and institutional investors now own 86.23% of Bunge Global’s stock.

In insider trading news, Vice President Christos Dimopoulos sold 25,300 shares on November 21, 2023, for an average price of $94.37 per share, totaling approximately $2.4 million. Following this transaction, Dimopoulos retained 104,537 shares in the company, valued at around $9.9 million, representing a 19.49% decrease in his ownership.

Bunge Global’s shares experienced a modest decline of 0.1% recently. The company reported its quarterly earnings on November 5, 2023, revealing an earnings per share (EPS) of $2.27, exceeding analysts’ consensus estimate of $2.23 by $0.04. Despite a year-over-year revenue increase of 71.6%, the company generated $22.16 billion in revenue for the quarter, falling short of the expected $22.46 billion.

Analysts are optimistic about Bunge Global’s future performance, forecasting an EPS of $7.94 for the current fiscal year. Recent research reports have provided mixed ratings and price targets. Morgan Stanley set a price target of $95.00, while JPMorgan Chase & Co. increased its target from $107.00 to $109.00 and rated the stock as “overweight.” Citigroup reaffirmed a “buy” rating, and Zacks Research upgraded Bunge Global from a “hold” to a “strong buy.” CICC Research also raised its price objective from $90.00 to $110.00.

Currently, one analyst has given Bunge Global a “Strong Buy” rating, six have assigned it a “Buy” rating, and two have rated it as “Hold.” Data from MarketBeat.com indicates a consensus rating of “Moderate Buy” with an average price target of $106.00.

Bunge Global operates as an agribusiness and food company worldwide, segmented into Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment is responsible for purchasing, storing, transporting, processing, and selling agricultural commodities, including oilseeds and grains.