Shares of Cathie Wood’s flagship exchange-traded fund (ETF), the ARK Innovation ETF (NYSEARCA:ARKK) closed the week down about 2.5%, losing out on earlier gains during the week. However, retail investors haven’t lost hope in ARKK, or Cathie Wood just yet.
In the five trading days that ended Aug. 15, investors poured $54.2 million into ARKK, the most in a five-day span since May. The ETF is still down over 50% year-to-date (YTD), even after a significant rally from its June lows.
Cathie Wood continues to hold her highest conviction holdings, such as Tesla (NASDAQ:TSLA) and Teladoc (NYSE:TDOC). At the same time, she has sold off shares of lower conviction holdings in favor of new names. Let’s get into the details.
5 Stocks That Cathie Wood Sold This Week
1. Signify Health (SGFY)
Earlier this week, it was reported that four companies, including CVS (NYSE:CVS) and UnitedHealth (NYSE:UNH), were competing to acquire the healthcare company. UnitedHealth submitted the highest offer of $30 per share, which is right around where shares of SGFY are trading. It seems that Cathie Wood is offloading her stake for a gain on an acquisition that may still fall through, reducing her risk. After the sales, Ark still owns 14.47 million shares of SGFY stock. It wouldn’t be surprising to see the sales continue.
2. Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) operates as a biotechnology company that specializes in the treatment of underlying causes of cystic fibrosis. However, the company is branching out in a collaboration with Crispr (NASDAQ:CRSP) to develop a blood disease gene-editing therapy called exa-cel. Exa-cell seeks to treat sickle cell disease and transfusion-dependent beta-thalassemia and would cancel out the need to receive regular blood transfusions.
The two companies expect to submit their findings to regulatory agencies in the U.S. and Europe by the end of the year. If approved, Vertex could begin preparations to launch the therapy by Q3 of 2022. However, it appears that Wood won’t stick around to wait for the results. From August 22 to August 25, ARKG sold off 41,508 shares of VRTX. After the sales, the ETF owns less than 200,000 shares of the company.
3. Iovance Biotherapeutics (IOVA)
Iovance Biotherapeutics (NASDAQ:IOVA) operates as a biotechnology company that seeks to use cell therapies to treat cancer. The company is currently undergoing clinical trials to investigate tumor-infiltrating lymphocyte (or TIL) therapy as a monotherapy. Iovance is also investigating TIL “as part of combination therapy in advanced solid tumor cancers including melanoma, non-small cell lung cancer (NSCLC) and cervical cancer.” In addition, Iovance is currently recruiting patients with different types of cancer to participate in the trials.
This week, ARKG reported selling 139,765 shares of IOVA. These were the first sales since Feb. 1. After the sales, the ETF still owns 2.79 million shares, making it the 36th largest position out of 50 total.
4. 1Life Healthcare (ONEM)
1Life Healthcare (NASDAQ:ONEM) recently made headlines after Amazon (NASDAQ:AMZN) announced that it would close Amazon Care, its primary care and telehealth service. In July, the e-commerce giant announced that it would acquire One Medical, which 1Life previously owned. One Medical owns over 182 medical offices in the U.S. and collects a subscription fee for access to its physicians and digital health services. Amazon stated that it was shutting down Amazon Care because its operations overlap with One Medical’s operations.
Now, it appears that Ark is losing faith in ONEM. Wood’s ARKG ETF sold 561,735 shares of ONEM between Aug. 22 and Aug. 25. After the sales, ARKG still owns 126,174 shares.
5. Regeneron (REGN)
Regeneron (NASDAQ:REGN) is a well-known biotechnology company that produces and commercializes medicines for a variety of illnesses. The company reported its second-quarter earnings earlier this month, with revenue coming in at $2.86 billion, down 44% year-over-year. However, excluding impacts from REGEN-COV(a)(b), revenue would have increased by 20% YOY. Meanwhile, Regeneron remains profitable, reporting a diluted earnings per share (or EPS) of $7.47. At the end of the quarter, the company had 35 candidates in clinical development, including Dupixent and antibodies for the coronavirus.
However, it seems that Cathie Wood and company were not pleased with the results. This week, ARKG disposed of 6,924 shares of REGN. These were the first sales of REGN since March 14. After the sales, the ETF now owns a total of just 48,727 shares.