In this article, we discuss 5 EV stocks to buy according to Cathie Wood. If you want to read about some more EV stocks in the Wood portfolio, go directly to 10 EV Stocks to Buy According to Cathie Wood.
5. Altair Engineering Inc. (NASDAQ:ALTR)
Number of Hedge Fund Holders: 16
Altair Engineering Inc. (NASDAQ:ALTR) provides software and cloud solutions. The firm offers e-mobility design solutions as well as data analytics related to system modeling of EVs. Latest data shows that ARK owned 170,595 shares of Altair Engineering Inc. (NASDAQ:ALTR) at the end of March 2022 worth over $10.9 million, representing 0.04% of the portfolio. Wood had first bought a stake in the firm during the second quarter of 2019. The fund slashed its stake in the firm by 21% in early 2022 compared to fourth quarter data.
Altair Engineering Inc. (NASDAQ:ALTR) posted earnings for the first quarter of 2022 on May 5, reporting earnings per share of $0.38, beating estimates by $0.08. The revenue over the period was $159 million, beating expectations by $5.4 million.
Among the hedge funds being tracked by Insider Monkey, Waltham-based investment firm Matrix Capital Management is a leading shareholder in Altair Engineering Inc. (NASDAQ:ALTR), with 8.6 million shares worth more than $553 million.
In its Q4 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and Altair Engineering Inc. (NASDAQ:ALTR) was one of them. Here is what the fund said:
“Michigan-based Altair Engineering Inc. (NASDAQ:ALTR) was founded in 1985 to provide structural simulation and modeling to the automotive industry, beginning with software that simulated the effects of a car crash. Now, Altair’s HyperWorks suite of software is used extensively by automakers throughout the design and engineering process, including for elimination of noise and vibration, understanding fluid dynamics, and thermal management. Carmakers use the software to design components that are lighter and more aerodynamic to respond to tightening regulatory standards for gas mileage and carbon emissions, and in electric vehicle (EV) design where lighter-weight parts are even more critical (for extending battery range) and noise reduction is even more of an issue (in the absence of engine noise to mask sounds). HyperWorks users can compare the performance level of different design features and identify the most optimal. It also offers a toolset for durability analysis including an embedded materials library to predict fatigue life under a range of conditions. Similar types of engineering challenges occur in other industries, and Altair Engineering Inc. (NASDAQ:ALTR) works with many of them, including aerospace, heavy equipment, industrial machinery, rail, and marine companies.” (Click here to see full text)
4. Garmin Ltd. (NASDAQ:GRMN)
Number of Hedge Fund Holders: 34
Garmin Ltd. (NASDAQ:GRMN) makes and sells electronic components and devices. The company has partnered with EV maker Ford for incorporation of a communications and entertainment system made by the former for use in the cars of the latter. Securities filings show that ARK owned 87,487 shares of Garmin Ltd. (NASDAQ:GRMN) at the end of March 2022 worth $10.3 million, representing 0.04% of the portfolio. The company has been in the ARK portfolio since the first quarter of 2021.
On May 6, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Garmin Ltd. (NASDAQ:GRMN) stock and raised the price target to $208 from $205, appreciating the strong first quarter sales numbers from the company.
At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $579 million in Garmin Ltd. (NASDAQ:GRMN), up from 30 in the previous quarter worth $465 million.
3. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 52
Autodesk, Inc. (NASDAQ:ADSK) provides design and engineering software services. Leading EV brands like Tesla use the simulation services of Autodesk in their vehicle design processes. Regulatory filings reveal that ARK owned 42,545 shares of Autodesk, Inc. (NASDAQ:ADSK) at the end of the first quarter of 2022 worth $9.1 million, representing 0.03% of the portfolio. The company has been in the ARK portfolio since the first quarter of 2018. The fund slashed its stake in the firm by 23% in early 2022 compared to filings for late 2021.
On May 18, Mizuho analyst Matthew Broome kept a Buy rating on Autodesk, Inc. (NASDAQ:ADSK) stock and lowered the price target to $250 from $285, highlighting that overall software demand was strong despite the selloff in the broader market.
At the end of the fourth quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Autodesk, Inc. (NASDAQ:ADSK), compared to 54 the preceding quarter worth $2.3 billion.
In its Q4 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Autodesk, Inc. (NASDAQ:ADSK) was one of them. Here is what the fund said:
“We added to Autodesk, Inc. (NASDAQ:ADSK) on share price weakness. Near-term concerns have made the valuations of the company quite attractive in our view. Autodesk has consistently reported solid results, but management recently provided lower than expected guidance, noting supply chain issues, inflation squeezing its customer margins, global labor shortages, and complications from rolling and unpredictable COVID lockdowns globally. In aggregate, these issues mean that fewer client projects have been completed, despite high endmarket demand. Ultimately, many of these productivity pressures will likely drive the need to digitize further.
To be clear, much of the pressure on Autodesk’s share price recently was due to expectations, not a decline in the fundamentals of the business. Autodesk, Inc. (NASDAQ:ADSK) continues to grow revenues at greater than mid-teens rates while simultaneously enjoying record renewal rates. While each of the noted factors present real challenges in the near term, we think the lower share price provides long-term investors an opportunity. Given the secular trend towards digitization and the ever-increasing mission-critical nature of Autodesk’s products, we are confident in the long-term investment case. “
2. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
NIO Inc. (NYSE:NIO) makes and sells smart electric vehicles. Latest 13F filings show that ARK owned over 420,000 shares of NIO Inc. (NYSE:NIO) at the end of March 2022 worth $8.8 million, representing 0.03% of the portfolio. The firm is a new addition to the ARK portfolio compared to filings for the fourth quarter of 2021. The firm was recently listed on the Main Board of the Singapore Exchange Securities Trading Limited. The listing means that the company is the first Chinese automaker to trade on exchanges in the US, Hong Kong, and Singapore.
On May 16, analyst Ming Hsun Lee upgraded NIO Inc. (NYSE:NIO) stock to Buy from Neutral and raised the price target to $26 from $25, underlining that the upgrade was based on improving sales and better margins.
At the end of the fourth quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $813 million in NIO Inc. (NYSE:NIO), the same as in the preceding quarter worth $1.1 billion.
1. Honeywell International Inc (NASDAQ:HON)
Number of Hedge Fund Holders: 51
Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company. The firm markets electric and hybrid electric propulsion systems used in electric engines. It also offers EV thermal management services. Latest 13F filings show that ARK owned 29,482 shares of Honeywell International Inc. (NASDAQ:HON) at the end of March 2022 worth $5.7 million, representing 0.02% of the portfolio of the fund. The tech firm has been in the ARK portfolio since the fourth quarter of 2020.
On May 2, Citi analyst Andrew Kaplowitz maintained a Buy rating on Honeywell International Inc. (NASDAQ:HON) stock and raised the price target to $232 from $229, noting that the firm had the ability to effectively execute despite ongoing supply chain and inflationary pressures.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Honeywell International Inc. (NASDAQ:HON), with 1.6 million shares worth more than $342 million.
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