In this article, we discuss 5 biotech stocks to sell now according to Cathie Wood. If you want to read our detailed analysis of these stocks, go directly to 10 Biotech Stocks to Sell Now According to Cathie Wood.
5. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 41
Percentage Decrease in Stake in Q4: 83%
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) makes and sells medicines for treating various diseases. Top hedge funds hold large stakes in the company. At the end of the fourth quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), compared to 44 in the previous quarter worth $1.3 billion.
Latest 13F filings show that ARK owned 72,993 shares of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of December 2021 worth $46 million, representing 0.13% of the portfolio of the fund.
In its Q2 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) was one of them. Here is what the fund said:
“We restored Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) from a rather trivial to a more normal position size. You may recall Regeneron performed well for the Fund during the Covid-19 crisis, so we significantly reduced our position as its price-value gap narrowed. During the past several quarters, however, the market has experienced the now infamous “reopening trade,” in which companies that performed well during the pandemic trailed as the economy reopened. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) suffered a similar fate and its shares have lagged the S&P 500 by roughly 4000 basis points, despite the company’s strong fundamentals and robust pipeline of new products. The underperformance widened Regeneron’s price-value gap, so we restored it to a more normal position size.”
4. Caribou Biosciences, Inc. (NASDAQ:CRBU)
Number of Hedge Fund Holders: 24
Percentage Decrease in Stake in Q4: 100%
Caribou Biosciences, Inc. (NASDAQ:CRBU) is a clinical stage biopharma firm that develops treatments for solid tumors. Wood had first purchased a stake in the company during the third quarter of 2021, buying nearly 5,000 shares at an average price of $24.45 per share. She sold off that entire stake in the next quarter.
Other hedge funds have also been selling Caribou Biosciences, Inc. (NASDAQ:CRBU) stock. At the end of the fourth quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $233 million in Caribou Biosciences, Inc. (NASDAQ:CRBU), compared to 26 the preceding quarter worth $297 million.
3. RedHill Biopharma Ltd. (NASDAQ:RDHL)
Number of Hedge Fund Holders: 4
Percentage Decrease in Stake in Q4: 100%
RedHill Biopharma Ltd. (NASDAQ:RDHL) is a specialty biopharma firm. Elite hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in RedHill Biopharma Ltd. (NASDAQ:RDHL), with 175,058 shares worth more than $452,000.
RedHill Biopharma Ltd. (NASDAQ:RDHL) had been featured in the ARK portfolio since the first quarter of 2018. In the first quarter of 2021, the company had nearly tripled its stake in the biopharma firm. However, this holding was sold off completely during the fourth quarter of 2021.
2. Sema4 Holdings Corp. (NASDAQ:SMFR)
Number of Hedge Fund Holders: 38
Percentage Decrease in Stake in Q4: 100%
Sema4 Holdings Corp. (NASDAQ:SMFR) is a health intelligence firm. Wood had first purchased a stake in the firm during the third quarter of 2021, buying 9.4 million shares at an average price of $10.41 per share. The fund sold this entire holding between October and December.
There is positive hedge fund sentiment around Sema4 Holdings Corp. (NASDAQ:SMFR). At the end of the fourth quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth $257 million in Sema4 Holdings Corp. (NASDAQ:SMFR), up from 34 in the previous quarter worth $483 million.
1. NanoString Technologies, Inc. (NASDAQ:NSTG)
Number of Hedge Fund Holders: 22
Percentage Decrease in Stake in Q4: 100%
NanoString Technologies, Inc. (NASDAQ:NSTG) is a Washington-based biotech firm. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in NanoString Technologies, Inc. (NASDAQ:NSTG), with 2.1 million shares worth more than $89 million.
NanoString Technologies, Inc. (NASDAQ:NSTG) has been featured in the ARK portfolio since the first quarter of 2018. The fund had been shedding the stock since the first quarter of 2021 and completely sold it off during the fourth quarter of 2021.
You can also take a peek at 10 High-Yield Dividend Stocks with Payout Ratio Less than 55% and 10 Stocks to Buy Today According to British Billionaire David Harding.
