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The Top 5 Stocks Cathie Wood Bought and Sold This Week

  • The ARK Innovation ETF (ARKK) hit a five-year low this week.
  • That hasn’t fazed manager Cathie Wood, who has a time horizon of at least five years.
  • Shares of the ARKK ETF are down more than 60% year-to-date (YTD).
Logo for Ark Invest displayed on phone with logo in background as well, symbolizing Cathie Wood stocks
Source: shutterstock.com/viewimage

It has been another volatile week for Cathie Wood’s flagship exchange-traded fund (ETF), the ARK Innovation ETF (NYSEARCA:ARKK). Shares of ARKK recently hit a five-year low and 52-week low of $33.74. ARKK is now down more than 70% from its high in 2021.

Still, Cathie Wood is confident that her ETFs of high-growth names are well-positioned to take advantage of the risk-off environment. The fund manager has a time horizon of at least five years and is adamant that her returns will reward investors moving forward.

Other Ark Invest ETFs — such as the Ark Fintech Innovation ETF (NYSEARCA:ARKF) — have not been spared. ARKF recently hit a 52-week low of $14.19. The ARK Genomic Revolution ETF (BATS:ARKG) hit its own 52-week low back in June.

That said, Cathie Wood has remained highly convicted in her top positions. Let’s take a look at the top five stocks she bought and sold this week.

The Top 5 Stocks Cathie Wood Bought and Sold This Week

1. Tesla (TSLA)

Tesla (TSLA) Gigafactory Texas
Source: University of College / Shutterstock.com

On Oct. 20, the ARKK ETF purchased 66,190 shares of Tesla (NASDAQ:TSLA) stock, increasing its existing stake by 0.2%. This comes after the electric vehicle (EV) company reported third-quarter earnings with revenue of $21.45 billion and EPS of $1.05. For the period, analysts had expected revenue of $21.96 billion and EPS of 99 cents. For the quarter, deliveries also clocked in at 343,000 vehicles while production was 365,000 vehicles. Analysts had expected deliveries of 364,660 vehicles.

Tesla’s recent earnings release was a massive letdown, causing shares of TSLA stock to tumble lower. Still, Tesla reiterated its call for 50% annual growth in production. Meanwhile, deliveries will likely fall below 50% growth due to “an increase in the cars in transit at the end of the year.”

CEO Elon Musk added the following about the report:

“I can’t emphasize enough we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see […] The factories are running at full speed and we’re delivering every car we make, and keeping operating margins strong.”

2. Nurix Therapeutics (NRIX)

a number of test tubes and capsules are pictured under a cool blue light representing biotech stocks
Source: Shutterstock

ARKG purchased Nurix Therapeutics (NASDAQ:NRIX) on three separate occasions this week, totaling 107,807 shares. In fact, Ark Invest bought shares of NRIX stock every day from Oct. 10 to Oct. 19.

Nurix operates as a biopharmaceutical company focused on small molecule therapies to help treat cancer and other diseases. Shares of the company are down more than 60% year-to-date (YTD), offering Cathie Wood a massive discount. ARKG’s purchases also come after the company announced two direct offerings that raised $95 million through pre-funded warrants.

During Q3, Nurix announced collaboration revenue of $10.8 million. A major catalyst is set for Q4 as well, as the company is slated to receive $2.5 million from Gilead Sciences (NASDAQ:GILD) for completing a research milestone. Still, Nurix is unprofitable, reporting a net loss of $45.7 million, or an EPS loss of 90 cents.

3. Signify Health (SGFY)

Telemedicine by medical doctor or physician consulting patient’s health telehealth online using mobile tablet in clinic or hospital for professional digital emergency healthcare assistance service. SGFY stock
Source: Chinnapong / Shutterstock.com

Ark Invest has been steadily reducing its Signify Health (NYSE:SGFY) position, selling another 363,867 shares this week. In early September, CVS Health (NYSE:CVS) announced that it would acquire the company for $30.50 per share, or about $8 billion. This acquisition would be CVS’ first efforts into the home health market, which has been dominated by companies like UnitedHealth (NYSE:UNH) and Humana (NYSE:HUM).

Signify operates as an in-home healthcare company and expects to service almost 2.5 million patients this year through in-person and virtual visits. However, shares of SGFY are currently trading below their acquisition price as uncertainty still looms. This week, the U.S. Justice Department said it needs “more information” about the acquisition before it can be completed. Cathie Wood seems to be selling off her position to mitigate risk in case the deal falls through.

4. Crispr Therapeutics (CRSP)

the CRISPR Therapeutics logo seen displayed on a smartphone
Source: rafapress / Shutterstock.com

Crispr Therapeutics (NASDAQ:CRSP) stock has fallen by more than 30% YTD, although a significant catalyst may be on the horizon. Earlier this week, the gene-editing company announced that it would ask the U.S. Food and Drug Administration (FDA) for approval of its exa-cel drug, which seeks to restore the ability to produce healthy blood cells in patients with blood diseases. If approved, exa-cel would be the first gene-editing treatment that utilizes clustered regularly interspaced short palindromic repeats (CRISPR) technology in the market.

Exa-cel was created in collaboration with Vertex Pharmaceuticals (NASDAQ:VRTX). Ark Invest also owns shares of VRTX but has been selling its stake since the beginning of the year. Exa-cel has been tested on 75 patients, with 23 patients demonstrating one year of safe results and four patients demonstrating two years of safe results.

It seems that Wood may be skeptical of the drug, as she sold 22,861 shares on Oct. 20 through ARKK. In fact, Ark’s last seven transactions involving CRSP stock have all been sales, with the last purchase made on June 14.

5. TuSimple (TSP)

TSP stock: a hand holding a phone displaying the Tusimple logo in front of a computer displaying the company's investor relations page
Source: T. Schneider / Shutterstock

This week, Cathie Wood also pivoted after selling 9,369 shares of TuSimple (NASDAQ:TSP) on Oct. 20. That was her first sale of TSP stock this year following several buys that totaled millions of shares. However, a class action lawsuit has left a major overhang on the autonomous truck technology company.

The lead plaintiff deadline for this lawsuit is set for Oct. 31 and stems from an accident that occurred last April. During a test drive, a truck equipped with TuSimple’s technology crashed into a concrete barricade. TuSimple attributed the crash to “human error,” although the Wall Street Journal reported that it was actually due to a faulty autonomous driving (AD) system. The lawsuit claims that TuSimple rushed to bring its product to market, resulting in safety concerns and misleading statements about its technology.

The Federal Motor Carrier Safety Administration (FMCSA) and the National Highway Traffic Safety Administration (NHTSA) have since opened investigations into the accident.

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/2022/10/the-top-5-stocks-cathie-wood-bought-and-sold-this-week/.

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