In this article, we discuss 5 genomics stocks in Cathie Wood’s portfolio that are underperforming. If you want our detailed analysis of these stocks, go directly to 10 Genomics Stocks in Cathie Wood’s Portfolio That Are Underperforming.
5. 10x Genomics, Inc. (NASDAQ:TXG)
Number of Hedge Fund Holders: 22
Decline in Share Price in the Last 6 Months: 50.17%
10x Genomics, Inc. (NASDAQ:TXG) is a California-based biotechnology company that designs and develops gene sequencing technology utilized in scientific research. Cathie Wood initially purchased shares of 10x Genomics, Inc. (NASDAQ:TXG) in Q2 2020, and by Q4 2021, she reduced her stake in 10x Genomics, Inc. (NASDAQ:TXG) by 15%. Wood held 2.6 million shares worth $396.3 million, representing 1.19% of the total 13F securities.
10x Genomics, Inc. (NASDAQ:TXG) reported its Q4 results on February 16, posting a loss per share of $0.16, missing estimates by $0.13. The $143.53 million revenue also missed market consensus estimates by approximately $5 million. 10x Genomics, Inc. (NASDAQ:TXG) traded 18% lower in post-market trading after the company set its 2022 revenue guidance below Wall Street forecasts.
On February 17, Cowen analyst Dan Brennan lowered the price target on 10x Genomics, Inc. (NASDAQ:TXG) to $145 from $205 and kept an Outperform rating on the shares. The analyst said the Q4 miss was not a surprise but the guidance was worse than expected. He said while the number of causal factors creates risks, the issues are reasonable and there is a chance of significant improvement in the second half of 2022 and into 2023.
A total of 22 hedge funds held long positions in 10x Genomics, Inc. (NASDAQ:TXG) in the fourth quarter of 2021, down from 28 funds in the preceding quarter. 12 West Capital Management is a prominent shareholder of the company, with more than 2 million shares worth $298.5 million.
4. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 24
Decline in Share Price in the Last 6 Months: 65.96%
Based in San Francisco, California, Invitae Corporation (NYSE:NVTA) is a biotechnology company that is involved in medical-grade genetic testing. Shares of Invitae Corporation (NYSE:NVTA) have been consistently held by ARK Investment Management since Q1 2018, and in the fourth quarter of 2021, the hedge fund elevated its stake in Invitae Corporation (NYSE:NVTA) by 4%. The fund owned 26.70 million shares of the company, worth $407.7 million, accounting for 1.24% of the total 13F securities.
After the Q3 earnings and revenue miss, Wells Fargo analyst Dan Leonard lowered the price target on Invitae Corporation (NYSE:NVTA) to $25 from $35.
According to the Q4 database of Insider Monkey, Casdin Capital held one of the leading stakes in Invitae Corporation (NYSE:NVTA), with 12.20 million shares worth $186.35 million. Overall, 24 hedge funds were bullish on the stock in the fourth quarter of 2021.
3. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Decline in Share Price in the Last 6 Months: 53.27%
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a biotech company involved in genetic engineering to produce bacteria with industrial applications. Cathie Wood’s ARK Investment Management purchased a stake in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) in Q3 2021, and at the end of December 2021, the hedge fund elevated its position in the company by 86%, holding 43.1 million shares worth $358.8 million.
On February 1, BofA analyst Derik de Bruin started the stock with a Neutral rating and a $6 price target. The analyst says the synthetic biology market holds “much long-term promise”, and overall he has a positive view on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s engineering biology platform, but that it is tough to judge the adoption and commercial traction for end products derived from the company’s technology.
According to the fourth quarter database of Insider Monkey, 30 hedge funds reported owning stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), collectively amounting to $4.2 billion, as compared to 32 funds holding stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) worth $5.6 billion a quarter earlier.
2. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 31
Decline in Share Price in the Last 6 Months: 45.26%
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a Massachusetts-based biotech firm that creates medicines using the CRISPR gene editing system. Despite the stock declining 45.26% in the last six months, Cathie Wood elevated her stake in Intellia Therapeutics, Inc. (NASDAQ:NTLA) by 18% in Q4 2021. ARK Investment Management held 7.9 million shares of Intellia Therapeutics, Inc. (NASDAQ:NTLA), worth $936 million, representing 2.82% of the fund’s 13F securities.
On February 3, Intellia Therapeutics, Inc. (NASDAQ:NTLA) acquired Rewrite Therapeutics, a biotechnology firm focused on advancing novel DNA writing technologies for an upfront payment of $45 million. Rewrite’s DNA writing technology may enable a range of precise editing strategies at Intellia Therapeutics, Inc. (NASDAQ:NTLA).
William Blair analyst Raju Prasad on February 18 initiated coverage of Intellia Therapeutics, Inc. (NASDAQ:NTLA) with an Outperform rating and a $144 fair value for shares. In the second half of 2022, Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s clinical updates “could open a second multibillion-dollar market opportunity” for the company, says the analyst.
In Q4 2021, 31 hedge funds were bullish on Intellia Therapeutics, Inc. (NASDAQ:NTLA), down from 37 funds a quarter prior. Andreas Halvorsen’s Viking Global is a leading stakeholder of Intellia Therapeutics, Inc. (NASDAQ:NTLA), with 1.5 million shares worth $186.7 million.
Here is what Carillon Tower Advisers has to say about Intellia Therapeutics, Inc. (NASDAQ:NTLA) in its Q2 2021 investor letter:
“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”
1. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 34
Decline in Share Price in the Last 6 Months: 53.38%
CRISPR Therapeutics AG (NASDAQ:CRSP) is a Switzerland-based biotechnology company that uses CRISPR/Cas9 technology to create transformative therapies and gene-based medicines. Cathie Wood elevated her CRISPR Therapeutics AG (NASDAQ:CRSP) stake by 20% in Q4 2021, holding more than 9 million shares of the company, worth $688.6 million, representing 2.08% of the total 13F securities at ARK Investment Management. The stock declined 53.38% in the last six months.
On February 15, CRISPR Therapeutics AG (NASDAQ:CRSP) reported its fourth quarter results. The company posted a loss per share of $1.84, missing estimates by $0.06. Revenue over the period came in at $12.90 million, outperforming market consensus by $10.64 million.
Stifel analyst Benjamin Burnett on February 16 lowered the price target on CRISPR Therapeutics AG (NASDAQ:CRSP) to $64 from $100 and kept a Hold rating on the shares following the company’s Q4 report. While he contends the valuation is “becoming interesting” and shares look “enticing” amid the pullback, and admits he “strongly contemplated a valuation-based upgrade”, his cautious view regarding a catalyst for the shares kept him on the sidelines, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, EcoR1 Capital held a significant stake in CRISPR Therapeutics AG (NASDAQ:CRSP) in Q4 2021, with over 1 million shares worth $81.6 million. Overall, 34 hedge funds were bullish on the stock in the fourth quarter of 2021.
You can also take a look at Top 10 Tech and Automation Stocks in Cathie Wood’s Portfolio and 10 Biotech Stocks To Buy According To Chinese Billionaire Lei Zhang.
