Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made interesting multi-million-dollar trades on Tuesday, August 12, according to the funds’ daily disclosures. Wood purchased $3.15 million worth of stock in the eVTOL company Archer Aviation (ACHR) and bought $13.37 million worth of shares in autonomous vehicle technology company Pony AI (PONY).
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Meanwhile, the largest trade of the day was the sale of 282,737 shares of Kratos Defense (KTOS), totaling $18.49 million. Wood has been consistently reducing her stake in this government contractor as part of a strategic portfolio shuffle. Yesterday, KTOS stock gained 5.7%, and also hit a new 52-week high in intraday trading. Following the company’s Q2 sales and earnings beat on August 7, KTOS stock has gained nearly 17%. Wood appears to have capitalized on this rally.
Wood’s Other Interesting Trades
Wood has been particularly bullish on healthcare and biotech stocks recently. ARK funds bought $1.83 million worth of shares in Caris Life Sciences (CAI), $2.45 million in Illumina (ILMN), and $1 million in Exact Sciences (EXAS). At the same time, Wood made notable purchases in mega-cap companies, including $1.43 million worth of shares in Amazon (AMZN) and $1.9 million in Deere (DE).
On the sell side, Wood continued to offload shares of Guardant Health (GH), selling 107,309 shares for $5.88 million. She also cut the fund’s stake in Natera (NTRA) by selling $7 million worth of shares.
Here’s how these stocks perform on TipRanks’ Stock Comparison Tool:
Wood Accumulates Archer Aviation Stock
Wood has been consistently accumulating shares of the electric vertical take-off and landing (eVTOL) company, which has been in the limelight lately. Following months of purchases, ACHR now ranks #12 in ARK’s combined portfolio, with a market value of $262.7 million and a 2.05% weight.
Yesterday, the ARK Innovation ETF (ARKK) bought 217,165 shares of ACHR, the ARK Autonomous Technology and Robotics ETF (ARKQ) added 82,543 of ACHR stock, and the ARK Space Exploration & Innovation ETF (ARKX) purchased 30,414 shares. Together, the funds acquired 330,122 shares valued at about $3.15 million.
On August 11, Archer reported wider-than-expected net loss and ended the second quarter with $1.72 billion of cash. Archer is a pre-revenue company but has ambitious plans for its military aircraft business and the commercial air taxi operations. Wood seems highly optimistic about the future potential of the company’s government aircraft business.
Is ACHR Stock a Buy?
On TipRanks, ACHR stock has a Strong Buy consensus rating based on six Buys and two Hold ratings. The average Archer Aviation price target of $12.06 implies 17.7% upside potential from current levels. Year-to-date, ACHR stock has gained 5.1%.
