Billionaire Ray Dalio is Dumping These 5 Stocks

In this article, we talk about 5 stocks that billionaire Ray Dalio dumped from his portfolio. If you want to see more stocks in this selection, check out Billionaire Ray Dalio is Dumping These 10 Stocks.

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 68

Number of Shares Owned by Ray Dalio’s Fund in Q2: 29.37K

American Express Company (NYSE:AXP) is an American multinational corporation specializing in payment card services and headquartered in New York City.

On October 24, Wells Fargo analyst Donald Fandetti lowered the price target on American Express Company (NYSE:AXP) to $170 from $180 and maintained an Overweight rating on the shares following quarterly results. According to the analyst, higher funding costs have been a fairly neutral impact thus far, though they might become a modest headwind over time.

According to Insider Monkey’s data, 68 hedge funds were bullish on American Express Company (NYSE:AXP) at the end of Q3 2022, compared to 68 funds in the preceding quarter. Warren Buffett’s Berkshire Hathaway is the biggest position holder in the company.

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:

“In financials, American Express Company (NYSE:AXP) has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 69

Number of Shares Owned by Ray Dalio’s Fund in Q2: 1.54M

The world’s largest semiconductor chip manufacturer by revenue, Intel Corporation (NASDAQ:INTC) is an American multinational corporation and technology company that is involved in the production and sale of semiconductors for IoT devices that are used in cars, healthcare, retail, and energy.

Credit Suisse analyst Chris Caso assumed coverage of Intel Corporation (NASDAQ:INTC) with a Neutral rating and $28 price target on November 15. Based on the analyst’s remarks, the company is investing heavily to catch up with TSMC and Advanced Micro Devices, which will “consume all” its free cash flow for the upcoming years.

Ken Griffin’s Citadel Investment Group is Intel Corporation (NASDAQ:INTC)’s largest investor. It holds a $489.5 million stake in the company. Overall, 69 hedge funds reported holding INTC stocks at the end of Q3 2022.

ClearBridge Investments made the following comment about Intel Corporation (NASDAQ:INTC) in its Q3 2022 investor letter:

“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

3. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 74

Number of Shares Owned by Ray Dalio’s Fund in Q2: 289.19K

The largest automaker in the United States, General Motors Company (NYSE:GM) is an American multinational automotive manufacturing company headquartered in Detroit, Michigan.

On October 26, Deutsche Bank analyst Emmanuel Rosner lowered the price target on General Motors Company (NYSE:GM) to $35 from $36 and kept a Hold rating on the shares of the company. In a research note to investors, Rosner stated that General Motors’ “solid” Q3 beat leaves the company on track to reach the mid-point of its reiterated fiscal year EBIT guidance.

General Motors Company (NYSE:GM)’s largest investor in our database of 920 hedge funds is Warren Buffett’s Berkshire Hathaway which owns 50 million shares that are worth approximately $1.6 billion.

Oakmark Funds, an investment management firm, has released its first-quarter 2022 investor letter and mentioned General Motors Company (NYSE:GM). Here is what the fund said:

“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are underappreciated.”

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 112

Number of Shares Owned by Ray Dalio’s Fund in Q2: 335.91K

The Walt Disney Company (NYSE:DIS), commonly known as Disney, is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.

Evercore ISI analyst Vijay Jayant lowered his price target on The Walt Disney Company (NYSE:DIS) to $115 from $140 and maintained an Outperform rating on the shares after fiscal Q4 results missed his consensus estimates and the company reset expectations, particularly for direct-to-consumer losses. The analyst stated that the company’s guidance of “high single-digit” revenue and operating income growth in the fiscal year 2023, compared to consensus expectations for 11% revenue growth and 25% segment OI growth.

At the end of the third quarter of 2022, 112 hedge funds in the database of Insider Monkey held stakes worth $3.89 billion in The Walt Disney Company (NYSE:DIS), compared to 109 in the previous quarter worth $3.2 billion.

In its Q2 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:

“The Walt Disney Company (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade before the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Number of Shares Owned by Ray Dalio’s Fund in Q2: 149.25K

Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that engages in the retail sale of consumer products and subscriptions in North America and internationally.

On November 18, Erste Group analyst Hans Engel downgraded Amazon.com, Inc. (NASDAQ:AMZN) to Hold from Buy. According to Engel, the “outlook for earnings development has deteriorated in recent weeks,” and the analyst states that the multinational giant recently reported a significant weakening of profitability in the retail business.

At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $34.6 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 252 in the preceding quarter worth $30 billion.

Diamond Hill Capital Management commented on Amazon.com, Inc. (NASDAQ:AMZN) in a Q2 2022 investor letter,

Amazon.com, Inc. (NASDAQ:AMZN)’s shares underperformed as valuations of fast-growing companies continued to compress in Q2. Amazon’s growth investments over the past two years have pressured earnings as consumer demand has been weaker than anticipated. However, we believe the company will be able to grow into its infrastructure investments over time. These investments have obscured the magnitude of sustainable free cash flow as well as the attractive valuation of the business relative to peers.

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