In this article, we discuss Tesla and the 4 other stocks that Cathie Wood is selling. If you want to read our detailed analysis of these stocks, go directly to Cathie Wood is Selling Tesla and 9 Other Stocks.
5. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Number of Hedge Fund Holders: 34
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial-stage biotech firm. It focuses on the development of therapies for the treatment of rare diseases. The firm recently boosted revenue guidance for 2021 by $40 million on the potential sales of muscular dystrophy medications. It also beat market estimates on earnings per share and revenue for the third quarter by $1.37 and $10.4 million respectively.
JPMorgan analyst Anupam Rama recently upgraded Sarepta Therapeutics, Inc. (NASDAQ:SRPT) stock to Overweight from Neutral and raised the price target to $130 from $88, highlighting the potential of pipeline drugs of the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm VenBio Select Advisor is a leading shareholder in Sarepta Therapeutics, Inc. (NASDAQ:SRPT) with 2.4 million shares worth more than $186 million.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Sarepta Therapeutics, Inc. (NASDAQ:SRPT) was one of them. Here is what the fund said:
“We ended our campaign in Sarepta Therapeutics. Sarepta Therapeutics is a leader in Duchenne muscular dystrophy (DMD) drug development. Shares were pressured during the quarter amid a disappointing clinical trial outcome for its DMD gene therapy. We believe the odds of FDA approval for this therapy are lower and the timeline longer. Fortunately, we controlled for this risk by keeping this holding in the GardenSM. While Sarepta’s pipeline of gene therapies for neuromuscular disorders remains attractive, we exited our position given this setback. We believe CropSM holding Catalent is a better risk-adjusted way to participate in these opportunities. Catalent is a leader in gene therapy manufacturing and one of Sarepta’s key partners.”
4. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 67
General Electric Company (NYSE:GE) is a hi-tech industrial firm. It recently announced plans to split into three separate companies focused on aviation, healthcare, and energy respectively. Many analysts are skeptical of the success of this initiative. However, the share price of the firm jumped over 14% the day the plan was announced. John Slattery, the head of the aviation division of the firm, said recently that the division might soon consider independent deals.
JPMorgan analyst Stephen Tusa recently kept a Neutral rating on General Electric Company (NYSE:GE) stock with a price target of $55, noting that the rumored $20 billion valuation of the energy unit of the firm seemed poorly positioned given margins and portfolio mix.
At the end of the second quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $6.08 billion in General Electric Company (NYSE:GE), down from 68 in the previous quarter worth $6.16 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE:GE) was one of them. Here is what the fund said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
3. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 73
Bristol-Myers Squibb Company (NYSE:BMY) develops and markets biopharmaceutical products. It recently invested $20 million in predictive drug discovery firm Compugen, sending the share of the latter soaring by over 17%. Bristol-Myers Squibb has also announced positive data from a late-stage study of Opdivo, a treatment for patients with lung cancer. The firm has a market cap of over $131 billion.
There are reports that Bristol-Myers Squibb Company (NYSE:BMY) is looking to invest in the market again as it follows up on a $13 billion deal for MyoKardia last year. The firm is interested in purchases in oncology and cardiovascular medicines.
At the end of the second quarter of 2021, 73 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in Bristol-Myers Squibb Company (NYSE:BMY), down from 81 in the preceding quarter worth $5.7 billion.
In its Q4 2020 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Bristol-Myers Squibb Company (NYSE:BMY) was one of them. Here is what the fund said:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 82
AbbVie Inc. (NYSE:ABBV) is another biopharma stock that ARK Investment sold off entirely in the third quarter of 2021, according to the latest data. The company, based in Illinois, is one of the largest drug firms in the world. It recently obtained regulatory approval for Vuity, a drug developed for the treatment of age-related farsightedness. It has also posted positive data from a study into Rinvoq, a drug for the treatment of psoriatic arthritis.
Piper Sandler analyst Christopher Raymond recently maintained an Overweight rating on AbbVie Inc. (NYSE:ABBV) stock and raised the price target to $129 from $124, noting the shares were an “attractive” large-cap opportunity for investors.
At the end of the second quarter of 2021, 82 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in AbbVie Inc. (NYSE:ABBV), up from 72 in the preceding quarter worth $5.9 billion.
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 146
Alibaba Group Holding Limited (NYSE:BABA) stock has been hammered this year on the back of a crackdown against dual listed firms in China. However, there are reports that the stock is poised to get back on the growth track in the coming months. The Wall Street Journal claims that interest from legendary investors like Warren Buffett and Charlie Munger, as well as the recent appearance of founder Jack Ma in public had repaired some of the damage of the stock sell-off in the past few months.
Barclays analyst Jiong Shao recently initiated coverage of Alibaba Group Holding Limited (NYSE:BABA) stock with an Overweight rating and a price target of $275, placing it at the top of a pile of tech stocks from China.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA) with 14 million shares worth more than $3.2 billion.
In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:
“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”
You can also take a peek at 10 Best Stocks for Animal Lovers and 10 Best Nickel Stocks to Buy Now.
