Cathie Wood Is Making a Big Bet on Gingko Bioworks (DNA) Stock

  • Ark Invest has purchased more than 3.5 million shares of Ginkgo Bioworks (DNA) since June 29.
  • The biotech company is now the fund’s 23rd largest holding.
  • Shares of DNA stock are down over 65% year-to-date.
DNA stock - Cathie Wood Is Making a Big Bet on Gingko Bioworks (DNA) Stock

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Shares of Ginkgo Bioworks (NYSE:DNA) are in the spotlight after Cathie Wood’s Ark Invest reported purchasing more than 3.5 million shares of the company since June 29. The biotech company has been hit especially hard this year, with shares of DNA stock down more than 65% year-to-date. The company also hit an all-time low of $2.09 earlier this year.

Ginkgo operates a platform that allows customers to “program cells as easily as we can program computers.” The company’s customers range from agricultural companies to vaccine providers, such as Moderna (NASDAQ:MRNA).

Now, with share prices declining significantly, Cathie Wood is springing in and buying the dip. Let’s get into the details.

DNA Stock: Cathie Wood Purchases 3.5 Million Shares

On June 29, Wood purchased 1.57 million shares of DNA through the ARK Innovation (NYSEARCA:ARKK) exchange-traded fund (ETF). The next day, she purchased an additional 1.54 million share through the same ETF. Then, on July 1, Wood purchased 454,816 shares through the ARK Genomic Revolution ETF (BATS:ARKG).

Ginkgo is now the 16th largest holding in ARKK, accounting for 2.37% of the ETF’s holdings. In addition, it is the 12th largest holding in ARKG, accounting for 3.2%. In all Ark funds, it is the 23rd largest holding with a 1.26% portfolio allocation.

Wood’s DNA stock purchase on June 29 marked her first buy since May 20. On that day, DNA closed at $2.61, which is similar to the company’s current share price.

So, what exactly does Wood see in the biotech company? Ginkgo is currently unprofitable, but it has increased its revenue by more than 300% year-over-year. Meanwhile, the company’s potential applications seem to be limitless. In recent months, Ginkgo announced collaborations with a slew of companies and acquired Bitome, which operates as a cell culture media monitoring company. Its machine learning capabilities will help Ginkgo improve testing of cells in real-time.

On June 21, Ginkgo announced a milestone achievement with Cronos (NASDAQ:CRON). By using Ginkgo’s platform, Cronos has met the third productivity target for tetrahydrocannabivarin (THCV). THCV is thought to reduce the “appetite-enhancing property of THC.” The partnership between the two companies was announced in 2018 with the goal of creating innovative cannabis products.

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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 Publishing Guidelines.

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