Cathie Wood is Doubling Down on These 5 Stocks

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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.”

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