Cathie Wood snaps up nearly 4 million shares of a surging biotech stock
This stock spiked more than 10% Tuesday.
Ark Invest's "disruptive" technology thesis grants investors exposure to a number of different technological areas, from automation to cryptocurrency to biotechnology. While automation and crypto represent some of Ark's biggest bets, a large portion even of Ark's flagship Innovation fund consists of biotechnology companies working to revolutionize the health sector.
Ark on Tuesday heavily boosted its stake in one such company, buying 3,750,623 shares of Recursion Pharmaceuticals RXRX, a purchase worth roughly $24 million.
This latest purchase boosted Ark Innovation's holding in Recursion to 3,980,912 shares, worth $25.7 million and weighted at only .35% of the ETF.
Related: Cathie Wood explains why she cut Ark's Tesla holding
The stock closed up 10.8% Tuesday, rising a further 2.9% in pre-market trading. Recursion's stock, however, remains far off its July 52-week high of $16.75, when the biotech firm announced a partnership with semiconductor giant Nvidia NVDA.
The collaboration, which came in hand with a $50 million investment by Nvidia in Recursion, is meant to help the latter revolutionize drug discovery through artificial intelligence, the company said in a statement.
Shares of Recursion have fallen hard off those mid-summer highs, hitting a low of around $5 in early November before rising again.
Reporting third-quarter results Nov. 9, Recursion noted revenue of $10.5 million for the quarter, a decline from the $13.2 million the company earned in the year-ago period. Recursion also reported greater expenses and a wider net loss of $93 million for the quarter, above the $60.4 million the company reported for the same period last year.
Related: Cathie Wood sells 250,000 shares of a rising growth stock
Recursion had $387.3 million in cash as of Sept. 30, a reduction from prior quarters.
The results fell short of Street expectations.
"We could not be more inspired about the future and are confident that the Recursion OS will continue to lead the transformation of BioTech into TechBio," CEO Chris Gibson said in a statement.
The company reiterated in its earnings report several enhanced partnerships with the likes of Bayer and Roche-Genentech, both of which are meant to enhance its different programs and experiments.
Recursion's approach has resulted in the development of several potential candidates, but none have escaped clinical trials so far.
Shares of Recursion, closing Tuesday at $6.46, are down roughly 16% for the year.
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