TLDR
- Cathie Wood’s ARK ETFs sold 247,753 shares of Roblox worth $18.77 million after the stock hit new 52-week highs
- ARK also sold 33,363 shares of Coinbase valued at $11.86 million during volatile crypto market conditions
- The fund made a large $51.7 million investment in defense contractor Kratos Defense, buying 1.2 million shares
- ARK continued buying CRISPR Therapeutics stock with another $669,003 purchase of 14,037 shares
- The trades show ARK rebalancing from gaming and crypto stocks into defense and biotech sectors
Cathie Wood’s ARK Investment funds made major portfolio changes on June 26, selling millions of dollars worth of Roblox and Coinbase stock while investing heavily in defense company Kratos Defense and Security Solutions.
The investment firm sold 247,753 shares of Roblox Corporation for approximately $18.77 million. This represents a major reduction in ARK’s position in the gaming platform company.
The timing of the Roblox sale appears strategic. The stock has been on a strong rally and recently hit new 52-week highs, reaching levels not seen since late 2021.
Roblox shares rose over 2% on Thursday alone. The gaming platform has benefited from growing user engagement and better ways to make money from its platform.
The company has also expanded into immersive digital content. This growth has attracted positive attention from Wall Street analysts.
Oppenheimer analyst Martin Yang recently raised his price target for Roblox from $80 to $125. He kept a Buy rating on the stock and sees potential in the company’s advertising revenue.
ARK also sold a large position in cryptocurrency exchange Coinbase Global. The fund divested 33,363 shares worth around $11.86 million.
This sale comes during a volatile period for crypto exchanges. The move could reflect ARK’s strategy to reduce exposure to the cryptocurrency sector.
Defense Sector Investment
While selling tech and crypto stocks, ARK made its biggest purchase in defense contractor Kratos Defense and Security Solutions. The fund bought 1.2 million shares across multiple ETFs for $51.7 million.
This purchase marks a large increase in ARK’s stake in the defense company. Kratos specializes in unmanned systems, satellite communications, and microwave electronics.
Biotech Buying Continues
ARK also continued investing in gene-editing company CRISPR Therapeutics. The fund purchased 14,037 shares valued at approximately $669,003.
This follows a pattern of regular buying in the biotech company. The purchases suggest ARK remains bullish on CRISPR’s potential in gene therapy.
Other sales included 20,076 shares of uranium company Cameco Corporation worth $1.43 million. ARK also sold 1,700 shares of defense contractor Elbit Systems for $733,737.
The fund made a smaller sale of 707 shares in Lockheed Martin worth $324,081. ARK also sold 50 shares of automation company UiPath for $623.
Wall Street analysts have a Moderate Buy rating on Roblox stock based on recent analyst coverage. The average price target of $81.45 suggests the stock may face some downward pressure from current levels.
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