5 Top Stocks Cathie Wood Sold This Week


  • ARK Innovation ETF (ARKK) experienced outflows of $803 million during August.
  • August marked the largest monthly outflow for the ETF since September of last year.
  • Shares of ARKK are down more than 50% year-to-date.
Cathie Wood - 5 Top Stocks Cathie Wood Sold This Week

Source: rhendrikdwenz via Shutterstock

It was another down week for Cathie Wood’s flagship exchange-traded fund (ETF), the ARK Innovation ETF (NYSEARCA:ARKK). Shares of the ETF are finishing in the red today, marking the second straight week of declines. The drop was led by drawdowns in top holdings such as Tesla (NASDAQ:TSLA) and Teladoc (NYSE:TDOC).

On top of that, ARKK experienced outflows of $803 million during the month of of August. This was the largest monthly outflow since September of last year. In addition, ARKK saw inflows in only six days of August, while the rest were outflows.

Bloomberg reports some loyal retail investors are losing faith as well. An investor from the Bay Area stated, “When I entered it, I strongly believed in the vision. Currently, not so much, and since my initial reason for it did not still apply, I realized I should just let it go.”

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

5 Stocks Cathie Wood Sold This Week

1. Tesla (TSLA)

Perhaps the most significant sale of the week, Ark Invest sold 150,529 shares of TSLA stock on Sept. 1. The shares were sold through three Ark ETFs and totaled about $41 million. After the sale, Ark still owns 1.44 million shares of the electric vehicle (EV) company.

Wood herself has a 2026 Tesla price target of $1,533. With a target so high, why exactly is she selling shares? The answer may be to escape short term volatility in favor of relatively safer investments. Yesterday, Piper Sandler analyst Alexander Potter raised his price target to $360 from $344. However, Potter expects a price reduction in the short term. This is due to rising rates, geopolitical tensions, weakness in the Chinese market and shorter waiting times. The analyst also believes Tesla may lower prices for its EVs in the upcoming year.

2. Signify Health (SGFY)

Ark Invest has now sold shares of Signify Health (NYSE:SGFY) for four straight weeks. This week, Wood and company sold 1.08 million shares of the healthcare company. After the sales, Ark still owns 13.39 million shares.

In August, it was announced that four suitors were competing to acquire Signify. These suitors included UnitedHealth (NYSE:UNH) and CVS (NYSE:CVS). Bloomberg reported UnitedHealth had the highest offer of about $30 per share, which is equivalent to an $8 billion valuation. However, the final offers are expected to be disclosed by Sept. 6. As a result, it appears Wood isn’t waiting for offers and is instead choosing to take profits on a profitable investment. Cathie’s Ark reports that ARKK has a SGFY cost basis of $22.28, while the ARK Genomic Revolution ETF (BATS:ARKG) has a cost basis of $25.99.

3. Nano Dimension (NNDM)

Nano Dimension (NASDAQ:NNDM) is an industrial 3D printing company that focuses in additive manufacturing. The company reported earnings on Sept. 1, with revenue coming at $11.1 million, up 1,268% year-over-year (YOY). However, Nano remains unprofitable, reporting a net loss of $40 million and adjusted earnings before interest, taxes, deductions and amortizations (EBITDA) of negative $21.3 million. Furthermore, the company has a healthy cash balance of $1.27 billion. That’s almost twice Nano’s market capitalization of about $670 million.

It seems Ark was not impressed with earnings, as two Ark ETFS sold off 674,537 shares on the same day that earnings were announced. After the sales, Ark now owns a total of 15.65 million shares.

4. Iridium Communications (IRDM)

Iridium Communications (NASDAQ:IRDM) is a global satellite communications company. Its constellation architecture makes it the only network in the world that covers 100% of that planet. Each satellite in the constellation is cross-linked with four other satellites, providing increased reliability and resiliency. The cross-links also provide faster transmission speeds. Companies can tap into Iridium’s constellation by purchasing Iridium Connected devices, such as the Iridium 9555 and the Iridium 9575A, which is specified for U.S. government use. Shares of IRDM stock are up 7% year-to-date (YTD), compared to the S&P 500’s decline of about 17%.

It seems Ark is taking profits on a successful investment. This week, two Ark ETFs sold a total of 58,700 shares of IRDM. After the sales, Ark still owns 2.06 million shares.

5. Compugen (CGEN)

Compugen (NASDAQ:CGEN) engages in the research, development and commercialization of cancer immunotherapies using a “predictive computational platform.” Currently, the company has four products in Phase 1 clinical trials. In addition, Compugen has filed more than 120 granted or pending patents and has published at least 85 peer reviewed publications.

Compugen reported Q2 earnings on Aug. 4, and Ark has been selling shares ever since. For the quarter, the company reported a net loss of $9.1 million, down from $9.5 million a year ago. The net loss was equivalent to an earnings per share loss of 11 cents. Furthermore, Compugen expects to end the year with between $72 million and $74 million of cash on hand.

Between Aug. 29 and Sept. 1, ARKK and ARKG sold a combined 151,797 shares of CGEN. Ark now owns a total of 3.08 million shares.

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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/09/5-top-stocks-cathie-wood-sold-this-week/.

©2024 InvestorPlace Media, LLC