Kate George, Editor

About the Author Kate George, Editor

Trade Like Ray Dalio: Chipotle Mexican Grill, Inc. (CMG), QUALCOMM, Inc. (QCOM), Petroleo Brasileiro SA – Petrobras (ADR) (PBR)

Billionaire Ray Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund. As of September 22nd, Ray Dalio’s portfolio was worth $10.83 billion. We look at some of the recent moves of Dalio.

Dalio overview

In the most recent quarter, Dalio added shares of Chipotle Mexican Grill, Inc. (NYSE:CMG), the fast-casual Mexican restaurant that took the country by storm. Dalio’s latest investment has increased his shares in the company by 310% from the beginning of the year, bringing the current value of his Chipotle shares to $21 million.

In its latest quarterly reports, Chipotle announced an EPS of $4.45, beating consensus estimates of $4.44. Quarterly revenues of $1.22 billion were in line with expectations. Out of 9 ranked analysts on TipRanks who have rated Chipotle in the last 3 months, a majority are optimistic about the stock, just like Dalio. Of the total, 6 analysts have rated the stock as a Buy while 3 have rated it as a Hold. Based on the ratings from the 9 analysts, the average price target for the stock is $761.78, providing a 4.79% upside over current levels.

Among other additions, Dalio added shares of QUALCOMM, Inc. (NASDAQ:QCOM), increasing his total holdings in the company by around 77% and bringing the total value of QCOM in his portfolio to $11.6 million. Last Friday, the technology company announced 1,300 layoffs in San Diego. This was expected due to the company’s announcement in July to reduce 15% of its total global workforce of 31,300 employees over the next year. The company is attributing the downsizing efforts to drops in its revenue and net income.

Out of the 17 analysts polled by TipRanks who have rated Qualcomm, Dalio’s bullish view is shared by 10 analysts who have given a Buy rating to the stock. While 6 have rated the stock as a Hold, only 1 analyst has recommended to Sell the stock. Some of the reasons behind this optimism, in spite of poor revenue performance, are a low debt-to-equity ratio, expectations of improved EPS performance, and a high gross margin.

On the bearish side, Dalio reduced holdings in Petroleo Brasileiro SA – Petrobras (ADR) (NYSE:PBR), also known as Petrobas, a Brazilian energy corporation. In the last quarter, Dalio reduced his holdings in the stock by 15%, with his PBR shares now standing at a total value of $6.31 million. The oil and energy sector has been under pressure in the last year due to falling oil prices. This was a smart divestment move considering the stock has fallen over 55% since Dalio reduced his holdings. The stock last closed at $4.10, near its 52-week low of $4.02.

Dalio’s bearish views on PBR are similar to a majority of ranked analysts covering the stock. Out of the 5 analysts polled by TipRanks in the last three months, 3 have given a Sell rating. Of the remaining, one has given a Buy rating to stock, while another one has rated Petrobas as Neutral.

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