Ace hedge fund manager Cathie Wood made some interesting trades on July 25, according to ARK Invest’s daily trade updates. Wood sold $16.46 million worth of biotechnology company Crispr Therapeutics (CRSP) and $2.15 million of defense contractor Kratos Defense (KTOS) stock.
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Meanwhile, ARK funds added $6.2 million in biotechnology firm Absci Corp. (ABSI), purchased 262,141 shares of genomic diagnostics company Veracyte (VCYT), and acquired 69,969 shares of satellite company Iridium Communications (IRDM).
Wood Buys the Dip in Absci Stock
On July 25, Wood loaded up on 2.25 million shares of Absci, totaling $6.2 million. Absci leverages generative artificial intelligence (AI) and synthetic biology to develop novel biologic drugs, primarily antibodies, for pharmaceutical and biotechnology partners. ABSI stock plunged 17.7% on Friday after the company announced a $50 million secondary offering of its common shares. Wood seems to have capitalized on the “dip” in Absci shares to gain a notable position.
All seven analysts tracking ABSI stock have rated it a Strong Buy on TipRanks. The average Absci price target of $9.17 implies an impressive 217.3% upside potential from current levels. Year-to-date, ABSI stock has gained 10.3%.
Why Is Wood Dumping CRSP Stock?
Wood appears to have taken a bearish stance on gene-editing company Crispr, although she maintains a rather optimistic outlook on the overall genomics sector. On Friday, The ARK Innovation ETF (ARKK) sold 190,840 shares of Crispr worth $12.6 million, and the ARK Genomic Revolution ETF (ARKG) sold another 58,268 shares of CRSP for $3.8 million.
Crispr is a Swiss-American biotech company focused on developing transformative gene-based medicines to treat serious diseases such as sickle cell disease, beta-thalassemia, various cancers, type 1 diabetes, and cardiovascular diseases. It uses advanced gene-editing technology, primarily its CRISPR/Cas9 platform, to develop its medicines.
Despite the latest sale, CRSP remains the largest holding in the ARKG fund, with a market value of $137.5 million, and is also the fourth largest holding in the ARKK fund, with a market value of $450.6 million. Notably, CRSP stock has surged over 64% so far this year, backed by its revolutionary business model. Crispr is expected to release its Q2FY25 results in August. Wall Street expects CRSP to report a diluted loss of $1.4 per share, 1.3% better than the prior year’s loss of $1.49. Revenues are expected to jump nearly 1100% year-over-year to $6.14 million.
On TipRanks, CRSP stock has a Moderate Buy consensus rating based on 14 Buys and seven Hold ratings. Also, the average Crispr Therapeutics price target of $69.38 implies 7.1% upside potential from current levels. Year-to-date, CRSP stock has soared 64.5%.
