10 Stocks Ray Dalio and Insiders Are Piling Into

In this article, we discuss 10 stocks Ray Dalio and insiders are piling into.

Amid a volatile stock market environment, investors are turning towards insiders, billionaires, and famous money managers, in order to replicate their trades or get an idea about the near-term outlook based on their market moves. With Q3 earnings season coming to a close and several mega-cap stocks down meaningfully year-to-date, there is a chance for insiders to extend a vote of confidence by buying up their own company shares.

Investors giving up on stocks because of recession fears amid an uncertain market backdrop may want to reconsider their actions, as insiders at prominent companies like The Boeing Company (NYSE:BA), Costco Wholesale Corporation (NASDAQ:COST), and Booking Holdings Inc. (NASDAQ:BKNG) are going on buying sprees. It is also a good idea to observe billionaire money managers like Ray Dalio, the founder of Bridgewater Associates, which controls a $20 billion stock portfolio as of the end of the third quarter of 2022. In an interview with Barron’s on November 11, Dalio explained his outlook on the economy in the following words: 

“When the next big downturn occurs, and the economic pain is greater than the inflation pain, you will see the Fed and other central banks continue money-printing to monetize debt. Then, real rates will go down again, money will become cheaper and more plentiful, and inflation-hedge assets and new innovation/technology-company equities will be most attractive.”

Our Methodology 

We used Ray Dalio’s hedge fund Q3 2022 portfolio for this analysis, selecting his largest stock positions which have also had an insider purchase in the last 6 months. We have arranged the list according to the number of hedge fund holders in each firm, tracked by Insider Monkey as of the second quarter of 2022.

Stocks Ray Dalio and Insiders Are Piling Into

10. Sysco Corporation (NYSE:SYY)

Number of Hedge Fund Holders: 32

Sysco Corporation (NYSE:SYY) is an American multinational corporation engaged in distributing food products, kitchen equipment, and tabletop items to restaurants, healthcare and educational facilities, and hospitality businesses. In Q3 2022, Ray Dalio boosted his Sysco Corporation (NYSE:SYY) stake by 1%, holding 1.68 million shares worth about $119 million. On June 21, 2022, an insider also purchased 1,000 units of Sysco Corporation (NYSE:SYY)’s common stock. 

On November 1, Sysco Corporation (NYSE:SYY) reported its financial results for the quarter ending September 2022. The company posted a non-GAAP EPS of $0.97, falling short of market estimates by $0.02. The revenue of $19.13 billion climbed 15.9% on a year-over-year basis, beating Wall Street consensus by $430 million. 

Argus analyst John Staszak on November 2 raised the price target on Sysco Corporation (NYSE:SYY) to $96 from $92 and kept a Buy rating on the shares. Despite the FQ1 earnings miss, the analyst is optimistic about Sysco Corporation (NYSE:SYY)’s efforts to offset weak food sales to restaurants and hotels by controlling costs and focusing on sales to grocery stores. 

According to Insider Monkey’s data, 32 hedge funds were bullish on Sysco Corporation (NYSE:SYY) at the end of Q2 2022, compared to 31 funds in the prior quarter. Nelson Peltz’s Trian Partners held the biggest stake in the company, comprising 8.8 million shares worth about $745 million. 

Like The Boeing Company (NYSE:BA), Costco Wholesale Corporation (NASDAQ:COST), and Booking Holdings Inc. (NASDAQ:BKNG), Sysco Corporation (NYSE:SYY) is one of the stocks that insiders are piling into. 

9. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 55

Ray Dalio’s Bridgewater Associates owns nearly 3 million shares of Starbucks Corporation (NASDAQ:SBUX) as of the third quarter of 2022, worth $252.5 million and representing 1.27% of the total 13F securities. On September 15, two directors at the coffee giant purchased a total of 64,750 common shares priced at about $92.5 each. In Q3 2022, Starbucks Corporation (NASDAQ:SBUX) reported that comparable store sales increased 7% globally – gaining 11% in the United States and double digits internationally, excluding China. 

On November 4, Evercore ISI analyst David Palmer raised the price target on Starbucks Corporation (NASDAQ:SBUX) to $97 from $95 and maintained an Outperform rating on the shares, telling investors that he is “less worried” about FY23 sales and earnings following the company’s Q3 report. He lifted his FY23 EPS estimate to $3.39 from $3.25, which now reflects U.S. same-store sales growth of 8.5%, up from 7.5%.

According to Insider Monkey’s data, 55 hedge funds were long Starbucks Corporation (NASDAQ:SBUX) at the end of Q2 2022, compared to 58 funds in the prior quarter. D E Shaw held a prominent stake in the company, comprising 2.68 million shares worth $204.7 million. 

Here is what Polen Global Growth has to say about Starbucks Corporation (NASDAQ:SBUX) in its Q2 2022 investor letter:

“Starbucks, which garners a lower weighting in the Portfolio, had slightly better than average three-month performance. Same Store sales were up double-digits in the U.S. and International exChina, with solid revenue growth across those regions. The company is experiencing cost pressures from wages and input costs though, and China same-store sales were down 23% due to zero-COVID policy restrictions and lockdowns.”

8. CME Group Inc. (NASDAQ:CME)

Number of Hedge Fund Holders: 56

CME Group Inc. (NASDAQ:CME) is an Illinois-based company that operates a financial derivatives exchange for the trading of asset classes such as agricultural products, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies futures. Ray Dalio owns 318,263 shares of CME Group Inc. (NASDAQ:CME) as of Q3 2022, worth $56.3 million and representing 0.28% of his total 13F portfolio. On November 4, CME Group Inc. (NASDAQ:CME)’s director also purchased close to 49,000 shares priced at $170 per unit. 

On November 10, CME Group Inc. (NASDAQ:CME) declared a $1.00 per share quarterly dividend, in line with previous. The dividend is distributable on December 28, to shareholders of the company as of December 9. CME Group Inc. (NASDAQ:CME)’s dividend yield on November 14 came in at 2.27%. 

Deutsche Bank analyst Brian Bedell on October 27 raised the price target on CME Group Inc. (NASDAQ:CME) to $202 from $200 and kept a Buy rating on the shares following the “good” Q3 results.

According to Insider Monkey’s data, 56 hedge funds were bullish on CME Group Inc. (NASDAQ:CME) at the end of June 2022, compared to 58 funds in the prior quarter. GuardCap Asset Management held the leading position in the company, comprising 4.2 million shares worth approximately $859 million. 

Here is what Baron Durable Advantage Fund has to say about CME Group Inc. (NASDAQ:CME) in its Q1 2022 investor letter:

“CME Group, Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares rose 4.6%, contributing to results as elevated market volatility and rising interest rates led to higher trading activity on CME’s exchanges. Average daily trading volume increased 19% year-over-year with notable strength in Interest Rates and Equities products. We continue to own the stock due to CME’s strong competitive moats, underpinned by its product breadth and liquidity depth, as well as its sustainable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures while also benefiting from the rising rate environment.”

7. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 60

Securities filings for the third quarter of 2022 reveal that Ray Dalio’s Bridgewater Associates owns 11.4 million shares of The Coca-Cola Company (NYSE:KO), worth $642.3 million and representing 3.25% of the total portfolio. On October 28, a director at The Coca-Cola Company (NYSE:KO) also purchased 33,200 shares priced at $60.18 each. 

The Coca-Cola Company (NYSE:KO) posted market-beating Q3 results and global unit case volume grew 4%. For the full-year 2022, the company expects to deliver organic revenue growth of 14% to 15%. On October 20, The Coca-Cola Company (NYSE:KO) declared a quarterly dividend of $0.44 per share, in line with previous. The dividend is payable on December 15, to shareholders of record on December 1. 

On October 26, UBS analyst Peter Grom raised the price target on The Coca-Cola Company (NYSE:KO) to $68 from $63 and kept a Buy rating on the shares. The company’s Q3 earnings beat was “impressive” as its organic growth largely offset currency headwinds, the analyst told investors in a research note. 

According to Insider Monkey’s Q2 data, 60 hedge funds were bullish on The Coca-Cola Company (NYSE:KO), compared to 64 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway held the largest stake in the company, consisting of 400 million shares worth over $25 billion. 

Here is what Aristotle Capital specifically said about The Coca-Cola Company (NYSE:KO) in its Q2 2022 investor letter:

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the re-franchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social media for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

6. HCA Healthcare, Inc. (NYSE:HCA)

Number of Hedge Fund Holders: 63

HCA Healthcare, Inc. (NYSE:HCA) provides healthcare services in the United States. The company operates general and acute care hospitals that offer medical and surgical services, including inpatient care, intensive care, cardiac care, emergency services, and outpatient services. Ray Dalio’s Bridgewater Associates owns 372,040 shares of HCA Healthcare, Inc. (NYSE:HCA) worth $68.3 million as of Q3 2022. Patricia Elcan, a large shareholder of HCA Healthcare, Inc. (NYSE:HCA), purchased 325 shares of the company priced at $198.66 each on July 25. 

On October 21, HCA Healthcare, Inc. (NYSE:HCA) declared a $0.56 per share quarterly dividend, in line with previous. The dividend is payable on December 28, to shareholders of the company as of December 14. 

Citi analyst Jason Cassorla on October 26 raised the price target on HCA Healthcare, Inc. (NYSE:HCA) to $251 from $240 and kept a Buy rating on the shares following the Q3 results.

According to Insider Monkey’s Q2 data, 63 hedge funds were long HCA Healthcare, Inc. (NYSE:HCA), compared to 62 funds in the prior quarter. Harris Associates is the largest stakeholder of the company, with 7.75 million shares worth $1.30 billion. 

In addition to The Boeing Company (NYSE:BA), Costco Wholesale Corporation (NASDAQ:COST), and Booking Holdings Inc. (NASDAQ:BKNG), HCA Healthcare, Inc. (NYSE:HCA) is backed by elite hedge funds and insiders alike. 

Here is what Diamond Hill Capital Management specifically said about HCA Healthcare, Inc. (NYSE:HCA) in its Q2 2022 investor letter:

“HCA Healthcare, Inc. (NYSE:HCA) is a best-in-class operator of acute care hospitals and other health care facilities, including outpatient surgery centers. It has a strong market presence in highly attractive geographies with growing populations and low unemployment, such as Texas and Florida, which leads to a favorable payor mix. We are further attracted to its strong management team that has a stellar track record of deploying capital, and the founding family continues to own almost a quarter of the business. We initiated a position after HCA reported Q1 earnings — it reduced full year guidance due to increased labor costs and lower-than-expected acuity among COVID admissions, dampening near-term investor sentiment.”

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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Disclosure: None. 10 Stocks Ray Dalio and Insiders Are Piling Into is originally published on Insider Monkey.