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Billionaire Ray Dalio Just Bet on Rivian (RIVN) Stock. Here’s Why.

  • Ray Dalio just purchased 62,818 shares of Rivian (RIVN) stock.
  • The electric vehicle (EV) company is now his 721st largest position.
  • RIVN stock is down more than 60% year-to-date (YTD).
The back of a silver Rivian pick-up truck.
Source: Miro Vrlik Photography / Shutterstock.com

Rivian (NASDAQ:RIVN) stock is in full focus today after Bridgewater’s Ray Dalio purchased a new stake during the second quarter. An acclaimed investor, Dalio founded the hedge fund in 1975. Today, the fund manages more than $23 billion in 13F securities and over $235 billion in total assets under management. Bridgewater also operates as a medium- to long-term investor, holding stocks in its portfolio for an average of 4.75 quarters.

Rivian reported Q2 earnings earlier this month and maintained its full-year production guidance of 25,000 electric vehicles (EVs). During the period, revenue clocked in at $364 million as well. That beat the analyst estimate of $337.5 million by nearly 8%. The revenue was attributable to the delivery of 4,467 vehicles. Lastly, adjusted earnings per share (EPS) tallied in at a loss of $1.62, beating the analyst estimate by 1 cent.

With that in mind, let’s get into the details of Dalio’s recent RIVN stock purchase.

Billionaire Ray Dalio Bets on RIVN Stock

During Q2, Dalio purchased 62,818 shares of RIVN stock. After the purchase, Rivian is now the investor’s 721st largest position out of 985 total positions. The Rivian position has a 0.01% portfolio allocation.

This EV company is still in its very early stages and has struggled with ramping up production amid supply-chain challenges this year. Shares of RIVN are down over 60% year-to-date (YTD), although Dalio may see this as a relative discount.

In the Q2 earnings report, Rivian CEO RJ Scaringe said the following:

“In addition to production ramp and key technologies, we remain focused on scaling and enhancing our go-to-market capabilities and service offerings, while also optimizing costs and operating expenses across the business as we drive towards profitability.”

With Dalio now on board, let’s take a look at who else is betting on this nascent EV company.

Who Else Is Betting Big on Rivian?

With the Aug. 15 13F filing deadline past us, investors can now take a look at what institutions own RIVN stock as of June 30. During Q2, 518 funds reported owning Rivian shares, an increase of 34 funds from the prior quarter. In addition, the institutional put/call ratio lies at a low 0.53, down from 0.66 during Q1. This means that funds own more call options against the company than put options by a wide margin.

So, who are Rivian’s top five shareholders?

  1. Amazon (NASDAQ:AMZN): 158.36 million shares.
  2. T. Rowe Price (NASDAQ:TROW): 141.56 million shares.
  3. Global Oryx: 113.93 million shares. Global’s position is accurate as of Q3 2021.
  4. Ford (NYSE:F): 101.94 million shares. Ford’s position is accurate as of Q4 2021.
  5. Capital Research Global Investors: 44.92 million shares.

On the date of publication, Eddie Pan held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/billionaire-ray-dalio-just-bet-on-rivian-rivn-stock-heres-why/.

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