Cathie Wood Sells 7 Million Worth of Robinhood Stock Heres the Reason

Headlines were made as Cathie Wood’s ARK ETFs took significant actions on Monday, June 10th, 2024. The renowned investor oversaw the sale of 323,801 Robinhood Markets Inc. shares, spanning across ARKK, ARKW, and ARKF funds, resulting in a cash inflow of approximately $7,181,906. This move sparked speculation among investors regarding the reasoning behind this decision, especially as it led to a 2% dip in HOOD stock following the sell-off.

In contrast, ARK’s investment strategy also saw notable purchases in the biotech sector. They acquired 58,363 shares of Arcturus Therapeutics through the ARKG ETF, investing $1,857,110, showcasing their bullish stance on biotech firms. Additionally, ARK increased their holdings in Beam Therapeutics Inc. by adding 797 shares valued at $18,498 through the ARKK ETF. Intellia Therapeutics Inc. also received an influx of capital from ARK, with 46,828 shares purchased across ARKK and ARKG ETFs, totaling $1,064,400, indicating ARK’s confidence in gene editing companies.

However, not all companies experienced an increase in holdings. Exact Sciences Corp faced a sell-off, with ARK selling 100,687 shares across ARKK and ARKG ETFs, totaling $4,322,492.

The market also witnessed a 2.13% drop in Robinhood stock price to $22.92 following ARK’s sell-off. Despite this, it is important to note that the stock had seen a 5.6% increase on Monday, closing at $23.50. ARK’s active management strategy, focusing on biotechnology stocks and strategic divestment from select healthcare and tech companies, continues to influence market sentiment.