Cathie Wood’s Ark Invest has made a series of portfolio adjustments. The firm trimmed exposure to several biotech companies as it shifts focus within the healthcare and life sciences sector.
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According to recent SEC filings, Ark offloaded large holdings in companies focused on gene sequencing and therapy development. The sales included 2 million shares of 10X Genomics (TXG), 395,620 shares of Crispr Therapeutics (CRSP), 1.1 million shares of Intellia Therapeutics (NTLA), 2.2 million shares of Strata Critical Medical (SRTA), and 5.3 million shares of Pacific Biosciences of California (PACB).
These firms specialize in diagnostics and gene editing, sectors that have seen heightened volatility this year. The heavy divestment suggests Wood may be rotating out of longer-horizon biotech bets into companies with stronger near-term growth drivers.
Ark Bets on Veracyte ahead of Results
Despite the sell-off, Ark made a significant move into Veracyte (VCYT), purchasing over 665,690 shares for roughly $22.8 million at an average price of $34.33 per share. The buy lifted Ark’s total holdings to more than 4.4 million shares.
Days later, Veracyte announced third-quarter earnings that beat expectations, with adjusted EPS of $0.51, up from $0.33 last year and well ahead of the consensus estimate of $0.32. Revenue reached $131.8 million, surpassing forecasts of $124.7 million. The stock surged 16% in premarket trading following the results.
CEO Marc Stapley credited the strong performance to growing test adoption and margin expansion. “We delivered another outstanding quarter of testing revenue growth and adjusted EBITDA margin expansion, enabling us to raise both our revenue and profitability guidance,” he said.
Wood Sells Down Other Positions
Ark also reduced its stake in Roku (ROKU), selling more than 1.1 million shares as part of a steady trimming strategy that began in mid-2024. Roku continues to face legal scrutiny related to data privacy and patent claims, which may have influenced Ark’s decision.
In addition, Ark sold 694,510 shares of 908 Devices (MASS), a company whose stock has soared more than 250% year to date. Despite the strong gains, the fund appears to be locking in profits amid a broader shift toward more predictable growth sectors.
Key Takeaway
Cathie Wood’s recent trades point to a clear change in strategy. She is moving away from volatile biotech stocks and putting more money into diagnostics companies that are already showing steady growth. The stronger focus on Veracyte shows she prefers businesses with solid performance rather than those driven by speculation.
Is Veracyte a Good Stock to Buy?
Analysts maintain a Moderate Buy consensus on Veracyte (VCYT) based on 8 Wall Street ratings over the past three months. The breakdown includes six Buy ratings, one Hold, and one Sell.
The average 12-month VCYT price target stands at $39.83, suggesting a potential 9.6% downside from the last closing price.
