In this article, we discuss the 5 stocks Cathie Wood is doubling down on. If you want to read our detailed analysis of these stocks, go directly to Cathie Wood is Doubling Down on These 10 Stocks.
5. The Boeing Company (NYSE: BA)
Number of Hedge Fund Holders: 59
Percentage Increase in Stake in Q2: 724%
The Boeing Company (NYSE: BA) is ranked fifth on our list of 10 stocks Cathie Wood is doubling down on. The company operates from Illinois and makes and sells aerospace and defense-related products. According to the latest filings, ARK Investment Management owned 74.056 shares in the company worth $17.7 million at the end of June 2021. These represented 0.03% of the portfolio. Wood has increased ARK’s stake in the company by 724% compared to the first quarter.
On August 19, investment advisory Cowen maintained an Outperform rating on The Boeing Company (NYSE: BA) stock with a price target of $290, noting that the fiscal year estimates on the earnings per share for the firm in 2022 looked “high”.
At the end of the second quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in The Boeing Company (NYSE: BA), the same as in the preceding quarter worth $1.4 billion.
In its Q1 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and The Boeing Company (NYSE: BA) was one of them. Here is what the fund said:
“We’ve known Boeing for a long time. It’s always been a high quality company that’s traded for a premium valuation owing to its position as a global duopoly. We’d looked at it recently after weakness due to its highly publicized Max 737 issues, but it never got cheap enough for us to pull the trigger. After the pandemic, the stock went into freefall as its customer bases’ business dried up and people worried about its liquidity. The stock fell from $338 on February 19th when the S&P hit its high to a low of $89. We bought the stock after the new CEO Dave Calhoun said publicly that it would not take government capital if it required equity dilution because it had many other options. Our average price is just above $120 where it was trading for less than 7x what it earned in 2018. It will likely take a while to normalize to those earnings levels, but this business will survive and ultimately we will own a leader in a global duopoly. Even on depressed forecasts, the company currently has about a 10-15% free cash flow yield. If and when the economy normalizes, we think Boeing could be worth more than double its current price.”
4. Honeywell International Inc. (NASDAQ: HON)
Number of Hedge Fund Holders: 57
Percentage Increase in Stake in Q2: 859%
Honeywell International Inc. (NASDAQ: HON) is a North Carolina-based technology and manufacturing company. It is placed fourth on our list of 10 stocks Cathie Wood is doubling down on. Wood, through her hedge fund, owned 31,092 shares in the firm at the end of the second quarter of 2021, representing 0.01% of the portfolio. These are worth $6.8 million. The hedge fund has increased stakes in the company by 859% compared to the first quarter.
On July 26, investment advisory Deutsche Bank kept a Buy rating on Honeywell International Inc. (NASDAQ: HON) stock and raised the price target to $251 from $245, appreciating the earnings result of the firm in the second quarter of 2021.
At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Honeywell International Inc. (NASDAQ: HON), up from 56 the preceding quarter worth $1.7 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Honeywell International Inc. (NASDAQ: HON) was one of them. Here is what the fund said:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell also lagged in the quarter after previously generating strong returns over extended periods.”
3. The Trade Desk, Inc. (NASDAQ: TTD)
Number of Hedge Fund Holders: 25
Percentage Increase in Stake in Q2: 1,073%
The Trade Desk, Inc. (NASDAQ: TTD) is a California-based technology company. It is ranked third on our list of 10 stocks Cathie Wood is doubling down on. Latest data shows that ARK Investment Management owned more than 2.1 million shares in the company at the end of June 2021, representing 0.31% of the portfolio. The shares are valued at over $168 million. Wood has increased stake in the company 1,073% compared to the first quarter of 2021.
On August 17, investment advisory Citi reiterated a Neutral rating on The Trade Desk, Inc. (NASDAQ: TTD) stock and raised the price target to $85 from $60, noting that the estimates for the firm had been pushed higher following the second quarter results.
At the end of the second quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $719 million in The Trade Desk, Inc. (NASDAQ: TTD), down from 35 in the preceding quarter worth $812 million.
In its Q2 2021 investor letter, Richie Capital Group, an asset management firm, highlighted a few stocks and The Trade Desk, Inc. (NASDAQ: TTD) was one of them. Here is what the fund said:
“The Trade Desk (TTD – up 26.3%) – Shares in the programmatic advertising specialist rebounded during the quarter after selling off in Q1. The selloff was part of the previously mentioned market move away from higher priced technology names. The rebound in Q2 was due to Google delaying its phase out of third-party cookies in its Chrome browser to mid to late 2023. This is positive news, but TTD is prepared for the inevitable transition away from cookies. The company has built an industry alternative called UID 2.0 which asks users’ permission to receive targeted ads on websites.
UID 2.0 has gained more traction in the digital ad industry vs competing alternatives with many major publishers and advertisers on board. Additionally, TTD’s business is diversified across numerous channels including video, audio, in-app, native and social. Connected TV is currently their fastest growing business, and cookies are meaningless on that platform as ads are based on first-party data.”
2. Reinvent Technology Partners Y (NASDAQ: RTPY)
Number of Hedge Fund Holders: 38
Percentage Increase in Stake in Q2: 2,547%
Reinvent Technology Partners Y (NASDAQ: RTPY) is placed second on our list of 10 stocks Cathie Wood is doubling down on. The company operates from New York. It is a special purpose acquisition firm. According to regulatory filings, ARK Investment Management owned more than 1.1 million shares in the firm worth $11.8 million at the end of June 2021, representing 0.02% of the portfolio. The hedge fund has increased stake in the company by 2,547% compared to the first quarter of 2021.
On July 15, Reinvent Technology Partners Y (NASDAQ: RTPY) announced that it agreed to a deal with self-driving firm Aurora to take the latter public via the SPAC. Aurora is valued at more than $10 billion, according to reports.
At the end of the second quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth $326 million in Reinvent Technology Partners Y (NASDAQ: RTPY), down from 39 in the preceding quarter worth $321 million.
1. Splunk Inc. (NASDAQ: SPLK)
Number of Hedge Fund Holders: 47
Percentage Increase in Stake in Q2: 4,772%
Splunk Inc. (NASDAQ: SPLK) is ranked first on our list of 10 stocks Cathie Wood is doubling down on. The company provides software and cloud platform solutions. It is headquartered in California. ARK Investment Management owned 429,357 shares in the company at the end of June 2021, representing 0.11% of the portfolio. The shares are worth more than $62 million and Wood has increased ARK’s stake in the firm by 4,772% compared to the filings for the first quarter of the year.
On August 11, investment advisory UBS upgraded Splunk Inc. (NASDAQ: SPLK) stock to Buy from Neutral and raised the price target to $175 from $137, underlining the potential for upside in the security-related demand as a growth catalyst for the firm.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Splunk Inc. (NASDAQ: SPLK) with 1.9 million shares worth more than $283 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Splunk Inc. (NASDAQ: SPLK) was one of them. Here is what the fund said:
“In addition to the new issue market, we have been tactically adding growth exposure. To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Splunk.”
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