Cathie Wood-led Ark Investment Management has bought over 100,000 shares of Jack Dorsey’s Block Inc SQ, valued at over $6.9 million based on Wednesday’s closing price. The purchase happened through the company’s flagship ARK Innovation ETF ARKK.
The purchase comes at a time the stock has lost over 20% in one month. Block is a major crypto-based pick in Wood’s portfolio, with the company being the sixth-largest holding in the ARK Innovation ETF. Dorsey recently outlined his vision for the firm’s Bitcoin-centric BTC/USD future.
The stake is valued at over $384 million, with a weight of 4.69%, according to Ark data. The fund also holds substantial stakes in Coinbase Global Inc COIN and Robinhood Markets Inc HOOD.
Wood seems to differ with Evercore ISI analyst David Togut, who on Wednesday double downgraded Block to ‘Underperform’ from ‘Outperform’ and slashed its price target to $55 from $120. Togut sees “growing headwinds” to the company’s seller and ‘Buy Now Pay Later’ businesses, driven by increasing competition, tightening credit, and an expected slowdown in macroeconomic growth.
Togut also cut the 2023 gross profit estimates by 9% to $7 billion, to 5% below the Street.
CareDx Buy: Wood has also bought over 198,000 shares of precision medicine company CareDx Inc CDNA valued at over $3.6 million, based on Wednesday’s closing price. The purchase was done via the ARK Genomic Revolution ETF ARKG.
Image and article originally from www.benzinga.com. Read the original article here.