5 Stocks Ray Dalio and Insiders Are Piling Into

In this article, we discuss 5 stocks Ray Dalio and insiders are piling into. If you want to see more stocks in this selection, check out 10 Stocks Ray Dalio and Insiders Are Piling Into. 

5. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 64

Securities filings for the third quarter of 2022 reveal that Ray Dalio owns roughly 1.2 million shares of Costco Wholesale Corporation (NASDAQ:COST), worth $566.5 million and representing 2.86% of his total holdings. On June 7, a director at Costco Wholesale Corporation (NASDAQ:COST) reported purchasing 850 shares of the company priced at $470.74 each.

On November 7, Wells Fargo analyst Edward Kelly downgraded Costco Wholesale Corporation (NASDAQ:COST) to Equal Weight from Overweight, slashing the price target to $490 from $600. The analyst sees a “number of hurdles” in the company’s path and called Costco Wholesale Corporation (NASDAQ:COST) a “rich multiple stock.” He sees more risk to consensus estimates than potential upside moving forward.

According to Insider Monkey’s data, 64 hedge funds were long Costco Wholesale Corporation (NASDAQ:COST) at the end of Q2 2022, compared to 61 funds in the last quarter. Ken Fisher’s Fisher Asset Management held the leading stake in the company, consisting of 4.3 million shares worth $2 billion. 

Here is what Cooper Investors Global Equities Fund has to say about Costco Wholesale Corporation (NASDAQ:COST) in its Q3 2022 investor letter:

“The US economy continues to run hot – the labor market is extremely tight and a number of executives we spoke to described their challenges in retaining staff and preventing competitors from poaching talent. Industrial companies in particular continue to see record backlogs, with the easing of logistics and supply chain constraints only just starting to have an impact on deliveries and lead times.

In terms of inflationary pressures, the vast majority of our holdings have been able to leverage strong market positions and stakeholder relationships to push pricing through in 2022 such that minimal impact to earnings has occurred. Clearly this is not a lever that can be pulled indefinitely but the more experienced management teams have kept some of their powder dry. Our meeting with management at Costco in Seattle was memorable for several reasons but one was their latent ability to increase member pricing which they have not done in over 5 years (and thus likely to do in 2023)…

…To conclude we’ll return to our meeting with Costco mentioned earlier. The business quality is no secret after decades of incredible execution, but the meeting gave us renewed conviction around Value Latencies in terms of the runway for growth, the focus on enhancing customer value, Costco’s vast buying power (it purchases 30% of the world’s jumbo cashews as one example) and management’s feral focus on the business model and cost discipline.”

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 70

Eli Lilly and Company (NYSE:LLY) is an American company that discovers, develops, and markets human pharmaceuticals worldwide. As of Q3 2022, Ray Dalio owns 288,853 shares of Eli Lilly and Company (NYSE:LLY) worth $93.40 million, representing 0.47% of his total holdings. The billionaire boosted his stake in the company by 42% in Q3 2022. On August 12, a director at Eli Lilly and Company (NYSE:LLY) disclosed the purchase of 656 shares priced at $304.19 each. 

On October 17, Eli Lilly and Company (NYSE:LLY) declared a $0.98 per share quarterly dividend, in line with previous. The dividend is payable on December 9, to shareholders of record on November 15. Eli Lilly and Company (NYSE:LLY)’s dividend yield on November 14 came in at 1.10%. 

Barclays analyst Carter Gould on November 2 raised the price target on Eli Lilly and Company (NYSE:LLY) to $395 from $355 and kept an Overweight rating on the shares. The analyst cited higher long-term Mounjaro estimates after the Q3 results for the target raise. He thinks investors should focus on Mounjaro demand and Eli Lilly and Company (NYSE:LLY)’s long-term opportunity over near-term constraints.

Among the hedge funds tracked by Insider Monkey, 70 funds reported owning stakes in Eli Lilly and Company (NYSE:LLY) at the end of Q2 2022, compared to 53 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with nearly 6 million shares worth about $2 billion. 

Here is what ClearBridge Global Growth Strategy has to say about Eli Lilly and Company (NYSE:LLY) in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 72

Ray Dalio’s Bridgewater Associates, as of the end of September 2022, owns 1.13 million shares of Exxon Mobil Corporation (NYSE:XOM) worth $99.3 million, representing 0.50% of the total 13F securities. Jeffrey Ubben, a director at the oil giant, purchased about 1 million shares of the company in the beginning of August 2022. The per share price ranged between $86 to $89. 

On November 11, Piper Sandler analyst Ryan Todd raised the price target on Exxon Mobil Corporation (NYSE:XOM) to $131 from $113 and maintained an Overweight rating on the shares. The Q3 results were largely bullish for the integrated oil 2023 macro outlook, the analyst  wrote in a research note.

According to Insider Monkey’s second quarter database, 72 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), compared to 83 funds in the preceding quarter. Rajiv Jain’s GQG Partners held the leading stake in the company at the end of Q2 2022, comprising 47.5 million shares worth over $4 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

2. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 93

Booking Holdings Inc. (NASDAQ:BKNG) is an American company offering online travel and lodging reservations worldwide. Ray Dalio’s Bridgewater Associates held 40,963 shares of Booking Holdings Inc. (NASDAQ:BKNG) in the third quarter of 2022, worth $67.3 million and representing 0.34% of the total securities. Robert Mylod Jr., a director at the company, acquired 2000 shares of Booking Holdings Inc. (NASDAQ:BKNG) in August and September. 

On November 7, Susquehanna analyst Shyam Patil maintained a Positive rating on Booking Holdings Inc. (NASDAQ:BKNG) but cut the price target on the shares to $2650 from $2800. The analyst said they had a solid Q3 with further improvement in October, though some conservatism is factored into Q4 due to macro trends.

Among the hedge funds tracked by Insider Monkey, Booking Holdings Inc. (NASDAQ:BKNG) was part of 93 public stock portfolios at the end of Q2 2022, compared to 99 funds in the prior quarter. Harris Associates is a prominent position holder in the company, with 616,383 shares worth over $1 billion.  

Here is what RiverPark Large Growth Fund has to say about Booking Holdings Inc. (NASDAQ:BKNG) in its Q3 2022 investor letter:

“We also bought back a small position in Booking Holdings during the quarter. Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com and OpenTable. The company has been a dominant on-line travel agency for more than a decade with a high margin business model (40% EBITDA margin for 2019 and 28% for 2021) that requires limited capital expenditures, typically less than 3% of revenue, producing $4.5 billion free cash flow for 2019 and $2.5 billion for 2021 (due to the vast COVID disruption). The company has used its free cash flow for episodic acquisitions as well as to return cash to shareholders. BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations. Like all travel companies, Booking was hit hard by the pandemic, but with its high international exposure, we expect the company’s recovery to be equally strong as travel returns.”

1. Berkshire Hathaway Inc. (NYSE:BRK-B) 

Number of Hedge Fund Holders: 109

Berkshire Hathaway Inc. (NYSE:BRK-B) engages in the insurance, freight rail transportation, and utility businesses worldwide. Ray Dalio’s Bridgewater Associates owns 250,026 shares of Berkshire Hathaway Inc. (NYSE:BRK-B) worth $66.7 million as of Q3 2022. A director at the company purchased about 32 Class A shares of Berkshire on September 29, priced between $407,000 to $408,000 each. 

On September 21, investment advisory Edward Jones upgraded Berkshire Hathaway Inc. (NYSE:BRK-B) to Buy from Hold. Analyst James Shanahan issued the ratings update.

According to the second quarter database of Insider Monkey, 109 hedge funds were bullish on Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 104 funds in the prior quarter. Bill & Melinda Gates Foundation Trust held the biggest stake in the company, comprising 34.6 million shares worth $9.5 billion. 

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-A) in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”

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