In this article, we discuss the 5 stocks that Ray Dalio was wrong about. If you want to read about some more stocks that Ray Dalio was wrong about, go directly to Ray Dalio Was Wrong About These 10 Stocks.
5. Dolby Laboratories, Inc. (NYSE:DLB)
Number of Hedge Fund Holders: 22
Percentage Decline in Share Price (YTD): 18.79%
Dolby Laboratories, Inc. (NYSE:DLB) markets audio and imaging technologies. Regulatory filings indicate that Bridgewater Associates owned over 5,800 shares of Dolby Laboratories, Inc. (NYSE:DLB) at the end of March 2022 worth $455,000, representing a small portion of the portfolio.
On May 12, Barrington analyst James Goss kept an Outperform rating on Dolby Laboratories, Inc. (NYSE:DLB) stock and lowered the price target to $90 from $115, noting that the firm was facing some near-term challenges related to shipments.
At the end of the first quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $408 million in Dolby Laboratories, Inc. (NYSE:DLB), compared to 26 in the previous quarter worth $572 million.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Dolby Laboratories, Inc. (NYSE:DLB) was one of them. Here is what the fund said:
“Founded in 1965 and headquartered in San Francisco, Dolby Laboratories, Inc. (NYSE:DLB) designs and manufactures audio and visual products. Its technology makes images brighter, colors further refined and the audio experience more immersive by providing an enhanced ability to pinpoint the placement and volume of specific sounds. Products that utilize Dolby’s technology span both commercial and home theaters, televisions, sound bars, computers and mobile devices.
The company partners with music artists, movie directors and other content creators, teaching them how to properly leverage Dolby’s suite of products to create next-generation productions. Dolby Laboratories, Inc. (NYSE:DLB) generates revenue by licensing its technologies to software vendors and over 500 electronics manufacturers, the likes of which include Sony (SONY), Microsoft (MSFT), Samsung (OTC:SSNLF) and Apple (AAPL). The company’s end markets consist of Broadcast (39% of licensing revenue), Mobile (22%), Consumer Electronics (15%), PC (12%) and Other (12%). (Click here to read full text)
4. ALLETE, Inc. (NYSE:ALE)
Number of Hedge Fund Holders: 16
Percentage Decline in Share Price (YTD): 6.46%
ALLETE, Inc. (NYSE:ALE) operates as an energy company. According to the latest data, Bridgewater Associates owned more than 6,400 shares of ALLETE, Inc. (NYSE:ALE) at the end of the first quarter of 2022 worth $433,000, representing a small portion of the portfolio.
On May 23, Bank of America analyst Julien Dumoulin-Smith initiated coverage of ALLETE, Inc. (NYSE:ALE) stock with a Neutral rating and a price target of $63, noting that the firm relied on a small number of industrial customers in relation to peers and had limited load growth.
At the end of the first quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $46 million in ALLETE, Inc. (NYSE:ALE), compared to 12 in the preceding quarter worth $46.9 million.
3. Donaldson Company, Inc. (NYSE:DCI)
Number of Hedge Fund Holders: 24
Percentage Decline in Share Price (YTD): 9.19%
Donaldson Company, Inc. (NYSE:DCI) makes and sells filtration systems. Securities filings reveal that Bridgewater Associates owned over 39,000 shares of Donaldson Company, Inc. (NYSE:DCI) at the end of March 2022 worth $2 million, representing a small portion of the portfolio.
On June 2, Baird analyst Richard Eastman maintained an Outperform rating on Donaldson Company, Inc. (NYSE:DCI) stock and lowered the price target to $61 from $65, noting that the updated target reflected “ongoing broad-based inflation”.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Donaldson Company, Inc. (NYSE:DCI), with 1.4 million shares worth more than $75 million.
2. Spirit AeroSystems Holdings, Inc. (NYSE:SPR)
Number of Hedge Fund Holders: 52
Percentage Decline in Share Price (YTD): 28.04%
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) makes and sells aerostructures. Latest filings show that Bridgewater Associates owned over 6,400 shares of Spirit AeroSystems Holdings, Inc. (NYSE:SPR) at the end of the first quarter of 2022 worth $314,000.
On May 5, Susquehanna analyst Charles Minervino maintained a Positive rating on Spirit AeroSystems Holdings, Inc. (NYSE:SPR) stock and lowered the price target to $50 from $55, underlining that the firm was facing some production delays.
At the end of the first quarter of 2022, 52 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Spirit AeroSystems Holdings, Inc. (NYSE:SPR), up from 45 in the previous quarter worth $872 million.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Spirit AeroSystems Holdings, Inc. (NYSE:SPR) was one of them. Here is what the fund said:
“Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is a supplier of aerostructures to several aerospace and defense (A&D) companies, including Boeing, which is its largest customer. The company supplies fuselages, propulsion systems and wings for A&D companies. We expect Spirit to benefit from a recovery in aircraft production which was significantly curtailed over the past few years because of Boeing’s delayed recertification of the 737 MAX, following two major airline crashes. The airline and aerospace industries were also negatively impacted by the coronavirus pandemic, as both travel demand was curtailed and various governments restricted travel by their citizens. Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is focused on improving its margins. The company’s mix of aircraft production should organically increase as a result of more 737 MAX production in the mix. The 737 MAX is Spirit’s most profitable product. Meanwhile, a reduction in 787 MAX production also helps the company’s margin, since Spirit loses money on this program. The company is also automating its manufacturing processes in its factories which should help margins. We expect an improvement in the balance sheet, as profitability improves, and deliveries of aircraft reduce the amount of inventory on the balance sheet. The company produced positive free cash flow in its most recent reported quarter. Consensus earnings estimates are $2.78 and $5.35 for fiscal years 2023 and 2024, respectively. Earnings revisions for 2023 and 2024 appear to have bottomed and begun increasing modestly.”
1. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 52
Percentage Decline in Share Price (YTD): 53.19%
DoorDash, Inc. (NYSE:DASH) is a logistics platform that connects merchants with consumers. Latest data shows that Bridgewater Associates owned over 18,000 shares of DoorDash, Inc. (NYSE:DASH) at the end of the first quarter of 2022 worth $2.1 million, representing a small portion of the portfolio.
On June 3, DA Davidson analyst Tom White maintained a Neutral rating on DoorDash, Inc. (NYSE:DASH) stock and lowered the price target to $82 from $135, noting that the updated target reflected “the broader multiple compression for technology growth stocks”.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in DoorDash, Inc. (NYSE:DASH), with 5.2 million shares worth more than $618 million.
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
