Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made some notable portfolio adjustments on Friday, September 26, according to daily fund disclosures. The ace hedge fund manager bought shares of Kodiak AI (KDK), which went public on September 25, and biotechnology company Intellia Therapeutics (NTLA). Meanwhile, the ARK ETFs offloaded shares of Kratos Defense & Security Solutions (KTOS) and online gaming platform Roblox (RBLX).
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Wood Buys KDK and NTLA Stocks
On Friday, the ARK Autonomous Technology & Robotics ETF (ARKQ) bought 784,610 shares, valued at $416,627, of autonomous driving technology provider Kodiak AI. Notably, KDK began trading on Nasdaq on Thursday following its merger with special-purpose acquisition company (SPAC) Ares Acquisition Corp. II (AACT), an affiliate of Ares Management (ARES), in a deal that valued the startup at about $2.5 billion.
Meanwhile, the ARK Innovation ETF (ARKK) and the ARK Genomic Revolution ETF (ARKG) purchased 120,318 and 17,378 shares, respectively, of Intellia Therapeutics. Overall, the two ETFs bought a total of 137,696 NTLA shares, totaling $2.29 million. Wood has been increasing exposure to several stocks in the biotechnology space.
Currently, Wall Street has a Strong Buy consensus rating on Intellia Therapeutics stock based on 16 Buys and two Holds. The average NTLA stock price target of $31.73 indicates a 94.5% upside potential. NTLA stock has risen 40% year-to-date.
ARK ETFs Sell RBLX and KTOS Shares
The most notable transaction of the day was the sale of 70,874 shares, valued at $5.97 million, of defense contractor Kratos Defense and Security Solutions by the ARKQ ETF. KTOS stock has rallied 227% year-to-date.
Furthermore, the ARKK ETF continued to trim its stake in Roblox. On Friday, the ARKK ETF sold 27,906 RBLX shares, valued at $3.68 million. RBLX stock has risen more than 133% year-to-date.
While Wood sold KTOS and RBLX shares, Wall Street has a Strong Buy consensus rating on Kratos Defense and Security Solutions stock and a Moderate Buy consensus rating on Roblox stock. Following the impressive year-to-date rally, the average KTOS stock price target of $73.15 indicates a possible downside of 15.2%. Meanwhile, the average RBLX stock price target of $149.04 implies a 10.4% upside potential.
