Cathie Wood Keeps Buying monday.com (MNDY) Stock. Here’s Why.

Today, shares of monday.com (NASDAQ:MNDY) stock are in the spotlight after Cathie Wood’s Ark Invest reported buying shares on May 2 and May 3 through one of its exchange-traded funds (ETFs). Essentially, MNDY operates as a collaboration and communication platform for business users.

Monday.com (MNDY) logo displayed on smartphone held by two hands
Source: shutterstock.com/monticello

Shares of MNDY stock have fallen over 58% year-to-date (YTD) in light of the challenging macroeconomic environment, which has been exasperated by rising interest rates and inflation. However, Cathie Wood remains unfazed in her conviction about the company.

Here’s what investors should know about monday.com and Ark’s share purchases moving forward.

Cathie Wood Buys MNDY Stock

Looking forward, monday.com has confirmed that it will report first-quarter earnings on May 16. Accordingly, it seems that Ark Invest believes the company will post impressive results.

On May 2, the Ark Next Generation Internet ETF (NYSEMKT:ARKW) reported purchasing 25,566 shares of MNDY stock. The next day, the same ETF purchased an additional 2,041 shares. Interestingly enough, monday.com was the only company that Ark ETFs transacted with on May 3.

After the purchases, MNDY stock accounts for 1.56% of ARKW, making it the 20th largest position in the ETF. In all Ark ETFs, the company also holds a 0.17% allocation, making it the 78th largest position.

Besides the purchases on May 2 and May 3, the last time Ark Invest purchased shares of MNDY stock was on March 28. On that day, ARKW purchased 43,638 shares.

All told, monday.com does not account for a significant percentage of ARKW. However, it still seems Wood is building up her position before the company’s earnings date. As such, investors should keep their eyes peeled for further buys prior to the results.

3 Analysts Chime In About monday.com

  • Tigress Financial has a price target of $432 for MNDY stock. Analyst Ivan Feinseth believes the company is quickly gaining market share versus competitors. Feinseth also says its work operating system is “highly scalable and adaptable.” As a result, the analyst predicts the business model will “drive significant revenue growth as it penetrates its large and growing potential market.”
  • Goldman Sachs has a price target of $390. Analyst Kash Rangan is impressed by the company’s growth and free cash flow generation. Furthermore, Rangan views monday.com as a “leader in the work operating system market,” which is involved with many industry subsectors like customer relationship management (CRM), marketing, human resources and information technology (IT).
  • Finally, Needham has a price target of $230. Analyst Scott Berg believes that sentiment toward the company’s outlook is positive due to management’s “high confidence” on sustained product demand. Berg adds that he would like to see its core platform expand with new modules and offerings. The analyst describes the company as “a platform that extends far beyond just project management.”

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. 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.


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