In this article, we will take a look at the top 5 tech and automation stocks in Cathie Wood’s portfolio. If you want to read our detailed analysis of Cathie Wood’s history, investment philosophy, and hedge fund performance and go directly to the Top 10 Tech and Automation Stocks in Cathie Wood’s Portfolio.
5. Materialise NV (NASDAQ:MTLS)
Ark Investment’s Stake Value: $112.45 million
Percent of 13F Portfolio: 0.27%
Number of Hedge Fund Holders: 9
According to hedge funds data tracked by Insider Monkey, nine hedge funds have investments in Materialise NV (NASDAQ:MTLS), worth over $147.2 million as of the end of the third quarter of 2021. Materialise NV (NASDAQ:MTLS) specializes in developing manufacturing and medical software and 3D printing services. The company aims to automate patient-specific designing of surgical devices and implants through image-based analysis.
On October 10, 2021, JPMorgan initiated its coverage on the stock with an “Overweight” rating and kept a price target of $28. Ark Management held 5.59 million shares in Materialise NV (NASDAQ:MTLS), valued at $112.45 million, in the third quarter of 2021.
In the September quarter of 2021, Materialise NV (NASDAQ:MTLS) reported an EPS of $0.18, beating the market estimates by $0.16. In the same quarter, revenue came in at $60.98 million, beating the market estimates by $2 million.
4. Stratasys Ltd. (NASDAQ:SSYS)
Ark Investment’s Stake Value: $155.6 million
Percent of 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 21
Stratasys Ltd. (NASDAQ:SSYS) is a Minneapolis-based technology company that provides 3D printing systems and services. Insider Monkey tracked that Stratasys Ltd. (NASDAQ:SSYS) was in the portfolio of 21 hedge funds in the September quarter of 2021, valued at $270.2 million.
In the third quarter of 2021, Cathie Wood’s Ark Management held 7.23 million shares in Stratasys Ltd. (NASDAQ:SSYS), valued at $155.58 million, accounting for 0.37% of its 13F portfolio. In the third quarter filings, Stratasys Ltd. (NASDAQ:SSYS) posted an EPS of $0.01, beating the market estimates by $0.07. Q3 revenue totaled $159.01 million, beating the estimates by $8.93 million.
On November 08, 2021, Loop Capital raised its price target on Stratasys Ltd. (NASDAQ:SSYS) to $35 from $19 and kept a “Hold” rating on the stock.
3. Trimble Inc. (NASDAQ:TRMB)
Ark Investment’s Stake Value: $364.6 million
Percent of 13F Portfolio: 0.87%
Number of Hedge Fund Holders: 34
With 4.43 million shares valued at $655.7 million, Ark Management is one of the leading hedge fund investors in Trimble Inc. (NASDAQ:TRMB). Trimble Inc. (NASDAQ:TRMB) works in the utility sector and provides electricity in Kansas to residential, commercial, and industrial consumers.
In the September quarter of 2021, Trimble Inc. (NASDAQ:TRMB) reported an EPS of $0.66, beating the market estimates by $0.05. Revenue for the same quarter came in at $901.4 million.
34 hedge funds have stakes in Trimble Inc. (NASDAQ:TRMB), valued at $1.82 billion in the third quarter of 2021, according to the database of Insider Monkey. On October 14, 2021, Piper Sandler initiated its coverage on the company with an “Overweight” rating and a price target of $101.
2. UiPath Inc. (NYSE:PATH)
Ark Investment’s Stake Value: $1.26 billion
Percent of 13F Portfolio: 3.02%
Number of Hedge Fund Holders: 27
Insider Monkey tracked that 27 hedge funds had stakes in UiPath Inc. (NYSE:PATH) in the September quarter of 2021. UiPath Inc. (NYSE:PATH) develops and manufactures end-to-end automation platforms and robotic process automation for a range of companies in the US, Romania, and Japan.
Ark Investment Management held 23.9 million shares of the company worth $1.259 billion in the third quarter of 2021. Ark Investment Management is also the leading hedge fund investor in UiPath Inc. (NYSE:PATH).
On December 15, 2021, BMO Capital lowered its price target on UiPath Inc. (NYSE:PATH) to $52 from $57 and kept a “Market Perform” rating on the stock.
Here is what ClearBridge Investments has to say about UiPath Inc. in its Q2 2021 investor letter:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
1. Teladoc Health, Inc. (NYSE:TDOC)
Ark Investment’s Stake Value: $2.1 billion
Percent of 13F Portfolio: 5.01%
Number of Hedge Fund Holders: 40
Teladoc Health, Inc. (NYSE:TDOC) is a New York-based healthcare company that provides B2B solutions to clinics and other healthcare providers. The company aims to automate the healthcare system. Stakes worth $2.83 billion are invested in Teladoc Health, Inc. (NYSE:TDOC) by 40 hedge funds as of the end of September quarter of 2021, as tracked by Insider Monkey.
On December 02, 2021, Baird lowered its price target on Teladoc Health, Inc. (NYSE:TDOC) to $110 from $125 and continued a “Neutral” rating on the stock.
Ark Investment Management held 16.5 million shares in Teladoc Health, Inc. (NYSE:TDOC), valued at $2.58 billion in the third quarter of 2021. Ark Investment Management is also the leading hedge fund investor in Teladoc Health, Inc. (NYSE:TDOC).
Here is what Luca Capital has to say about Teladoc Health, Inc. in its Q3 2021 investor letter:
“As bullish as we are on the future of telemedicine though, we acquiesce that it can be difficult to build a durable moat. Although telemedicine is very scalable and an easy sell (everyone is a potential customer), the service itself is a commodity with little pricing power and low switching costs. However, scale is a significant advantage as a larger network of providers confers lower connection times and wider coverage. In addition, different areas of the country have varying access to care at any given time, but since regulations now allow providers to see patients across all states, we can better match doctors with patients under a national network, similar to “load balancing” in computing. Since Teladoc is international too, there also exists an opportunity to see patients across international borders. These are just a handful of reasons why we do not believe off-the-shelf consumer products like Zoom or Twilio will eventually replace the core telemedicine providers. They’re not integrated, not on-demand, limited to local physician supply, not accessible at the point-of-care via carts or other hospital equipment, and there’s nothing like Livongo to give the providers a continuous picture of patient health. Teladoc also allows whitelabelling, which enables health systems to take advantage of Teladoc’s additional provider supply while retaining the brand their patients have come to know and trust. However, while this incentivizes health systems to go with specialized platforms like Teladoc or Amwell, it’s making it more difficult for end-consumers to differentiate the major telemedicine providers at the product-level.”
You can also take a look at 10 Favorite Stocks of Cathie Wood and Ken Fisher and Top 10 Stock Picks of Paul Singer.
