Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made several interesting trades on Monday, July 14. The ace hedge fund manager continued to offload shares of streaming platform Roku (ROKU) and electric vertical take-off and landing (eVTOL) aircraft maker Archer Aviation (ACHR).
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At the same time, Wood surprisingly added shares of Caris Life Sciences (CAI), displaying her growing conviction in the biotechnology sector. The ARK Genomic Revolution ETF (ARKG) purchased 52,527 shares of the AI TechBio and precision medicine company, valued at $1.39 million.
Wood Is Dumping ROKU Stock
According to ARK Invest’s daily trade disclosures, the ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) sold a combined 33,963 shares of ROKU, totaling $3.02 million. This move reflects Wood’s ongoing trend of reducing her position in Roku over the past few trading sessions. On Friday, July 11, ARK sold a total of 42,332 shares of ROKU across the same two ETFs, worth $3.82 million.
Despite the recent selling spree, ROKU still holds the third position in the ARKK ETF, with a market value of $508.24 million and a 7.16% weighting. Meanwhile, in the ARKW ETF, Roku now ranks seventh, with a market value of $122.82 million and a 5.59% weighting. Year-to-date, ROKU stock has surged 20.8%.
Is ROKU Stock a Buy, Hold, or Sell?
Analysts remain divided on Roku’s long-term stock outlook. On TipRanks, ROKU stock has a Moderate Buy consensus rating based on 13 Buys, five Holds, and one Sell rating. Also, the average Roku price target of $93.89 implies 4.5% upside potential from current levels.
Wood Is Trimming Archer Aviation Holdings
Interestingly, Wood is steadily trimming the fund’s exposure to Archer Aviation stock despite investors growing interest in the eVTOL market. Yesterday, the ARKK ETF sold 171,557 ACHR shares, amounting to $1.80 million. On Friday, the ETF also sold 168,990 shares of Archer Aviation for roughly $1.82 million.
Recently, the company’s CFO, Mark Mesler, resigned after an extended period of medical leave. This leadership change could also be a factor affecting Wood’s conviction in the company.
Notably, analysts also remain divided about ACHR’s long-term stock trajectory. On TipRanks, ACHR has a Moderate Buy consensus rating based on four Buys and two Hold ratings. The average Archer Aviation price target of $11.75 implies 8.8% upside potential from current levels. Year-to-date, ACHR stock has gained 10.8%.
