5 Top Stocks Cathie Wood Is Buying This Week


  • Cathie Wood launched the ARK Venture Fund in collaboration with Titan.
  • This week, she purchased shares in companies like UiPath (PATH) and Rocket Lab (RKLB).
  • Shares of the ARKK Innovation ETF (ARKK) are down by more than 55% year-to-date.
Cathie Wood - 5 Top Stocks Cathie Wood Is Buying This Week

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Last week, Cathie Wood made headlines after it was announced that she would relinquish her position as portfolio manager over two of her exchange-traded funds (ETFs), the 3D Printing ETF (BATS:PRNT) and the ARK Israel Innovative Technology ETF (BATS:IZRL). This led to speculation that the 66-year old Wood could soon step away from the investing world.

This week, Ark Invest announced a collaboration with brokerage platform Titan to create a new actively managed fund called the ARK Venture Fund. The fund seeks to provide retail investors with access to the venture capital industry and will hold between 25 and 50 positions. Around 70% of investments will be made in private companies, while the remaining 30% will be in public companies. Furthermore, the fund will carry a high 4.22% expense ratio.

With that in mind, let’s take a look at the top five stocks that Wood purchased this week.

The Top 5 Stocks Cathie Wood Is Buying This Week

1. Rocket Lab (RKLB)

Rocket Lab (NASDAQ:RKLB) is a brand-new addition to Cathie Wood’s portfolio. Between Sept. 26 and Sept. 29, two ARK ETFs purchased 870,431 shares of the company.

Rocket Lab operates as an end-to-end launch services provider that delivers and manufactures spacecraft and satellite components. The company’s proprietary Electron rocket and Photon spacecraft help researchers and scientists bring technology to orbit. Since inception, Rocket Lab has completed 28 launches and has deployed 148 satellites. In addition, it has a reputable list of customers, including the National Aeronautics and Space Administration (NASA), the U.S. Space Force and the Defense Advanced Research Projects Agency (DARPA).

Rocket Lab currently has several upcoming missions. One of these involves sending two Photon spacecrafts to Mars to analyze the planet’s hybrid magnetosphere. A launch is planned for 2024 in collaboration with NASA.

2. UiPath (PATH)

UiPath (NYSE:PATH) has remained a favorite among ARK ETFs despite its year-to-date (YTD) loss of more than 70%. At its investor day conference, the robotics process automation (RPA) company forecast 18% revenue growth for fiscal year 2024, falling short of the consensus analyst estimate of more than 20% growth. Before that, UiPath slashed its fiscal 2023 revenue outlook to between $1 billion and $1.01 billion, down from the previous guidance of $1.09 billion.

Still, analysts seem to be bullish on PATH stock, with many believing shares are currently undervalued. Among 20 firms, PATH has an average price target of $20.34, implying upside of about 60% from current prices. Following the company’s investor day, two firms lowered their price targets. Cowen lowered its target to $18 from $20, while Canaccord Genuity lowered its target to $14 from $15. That didn’t seem to phase Wood.

On Sept. 29, she purchased 951,032 shares through six of her ETFs. After the purchases, PATH is now the fifth-largest holding among all ARK ETFs.

3. Verve Therapeutics (VERV)

Verve Therapeutics (NASDAQ:VERV) seeks to manufacture treatments for cardiovascular diseases (CVDs) using single-course gene editing medicines. CVDs are a leading contributor to life expectancy reductions and have cost the U.S. more than $320 billion in annual expenses and lost productivity.

Genetic studies have shown some people possess gene variants that cause high LDL-C levels. Elevated levels of LDL-C, among other chemicals, can lead to increased risk of CVDs, such as heart attack. Using its proprietary gene editing medicine, Verve can potentially lower cumulative LDL-C levels in a patient, which can reduce the risks of getting CVDs.

On Sept. 23, two ARK ETFs purchased a total of 675,058 shares of VERV stock.

4. CareDX (CDNA)

CareDX (NASDAQ:CDNA) is a transplant diagnostics company that provides solutions for every step of the transplant process. Its first commercial product, AlloMap Heart, was launched in 2005 and is now used by more than 90% of U.S. transplant centers.

The company currently has several transplant products in its pipeline for various body parts, such as the heart, liver and kidney. One of these is Okra, which is a “multicenter, prospective, observational registry” that seeks to analyze the outcomes of kidney transplant recipients managed using KidneyCare. CareDX is also conducting the SHORE Study, which will observe the health of patients who receive HeartCare surveillance.

Between Sept. 23 and Sept. 27, the ARK Genomic Revolution ETF (BATS:ARKG) purchased 296,030 shares of CDNA stock.

5. Ginkgo Bioworks (DNA)

As a special purpose acquisition company (SPAC), Ginkgo Bioworks (NYSE:DNA) received much fanfare, as the basis of the gene editing company can be applicable to several industries. During the height of the coronavirus pandemic, Ginkgo made headlines after announcing its Concentric program. The program built partnerships with several testing labs across the country to share, process and analyze millions of test results. In the future, Ginkgo can further implement Concentric in the event of another disease outbreak.

However, the path for DNA as a public company has been extremely rocky, with shares down more than 60% YTD. For some investors, this may mean capitulation and massive losses. For Wood, it’s a green light to acquire more shares at a relative discount.

This week, ARKG and the ARKK Innovation ETF (NYSEARCA:ARKK) acquired a whopping 4.67 million shares of DNA stock. After the purchases, DNA is now the 13th-largest holding among all ARK ETFs.

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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 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/2022/09/5-top-stocks-cathie-wood-is-buying-this-week-2/.

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