5 Stocks to Sell Now According to Ray Dalio

In the article, we will discuss 5 stocks to sell according to Ray Dalio. To read the detailed analysis of Ray Dalio’s Bridgewater Associates, go directly to 10 Stocks to Sell Now According to Ray Dalio.

5. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holders: 61

Analog Devices, Inc. (NASDAQ:ADI) is a Washington-based semiconductor company. Bridgewater Associates added the company to its portfolio in Q1 2022 and sold it soon after. In Q1 2022, the firm held stakes worth $21.3 million in Analog Devices, Inc. (NASDAQ:ADI), representing 0.08% of the firm’s portfolio. Bridgewater Associates dumped its Analog Devices, Inc. (NASDAQ:ADI) position entirely in the second quarter of 2022.

In Q2 2022, Analog Devices, Inc. (NASDAQ:ADI) recorded an EPS of $2.52, exceeding the estimates by $0.09, and the revenue of $3.11 billion was up 76.7% on a YoY basis, beating estimates by $50 million. Moreover, the company paid out $1.3 billion to its shareholders during the quarter in the form of share repurchases worth $906 million and $394 million in dividends.

On August 18, Needham analyst Quinn Bolton downgraded Analog Devices, Inc. (NASDAQ:ADI) from Buy to Hold after its earning reports. The analyst added that Analog Devices, Inc. (NASDAQ:ADI) and the semiconductor industry are on their way to a broader slowdown. 

Here is what Madison Funds had to say about Analog Devices, Inc. in its Q3 2021 investor letter:

“At its 2017 investor day, Analog Device’s VP of Automotive, Mark Gill, described how the company’s content on well-equipped electric vehicles was $600 per car compared to $250 per car for the traditional 2017 internal combustion engine car. Since then, Analog has highlighted the success of its EV battery management systems (BMS) product nearly every quarter. The BMS product is hardware and software that manages the power into and out of the battery systems. It’s the brains of the operation. Analog says it’s on its fifth generation BMS product, that it has the no. 1 market share in high voltage products, and that it is on 5 of the top 10 selling EVs. While we think that the BMS product is just 1 to 1.5% of Analog’s product mix, we think that it could add nearly a point of revenue growth per year to the company’s top-line given the expected ramp in EV production. This is a material amount of growth atop an already nicely growing company revenue line.”