Cathie Wood’s 2022 Portfolio: 5 Small-Cap Stock Picks

4. Twist Bioscience Corporation (NASDAQ:TWST)

ARK Investment Management’s 13 Portfolio: 1.08% 

ARK Investment Management’s Stake Value: $259.94 million

Number of Hedge Fund Holders: 16

Market Cap: $1.5 billion

Twist Bioscience Corporation (NASDAQ:TWST) deals in the development of synthetic DNA-based products. Its DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. These products are also used for drug discovery and the usage of DNA as a digital storage medium. Cathie Wood, according to 13F filings for the first quarter, owned 5.26 million shares of Twist Bioscience Corporation (NASDAQ:TWST) at a value of $259.9 million.

In total, 16 hedge funds were bullish on the company shares at the close of the fourth quarter, down from 19 a quarter ago. The combined value of these Q4 hedge fund holdings stood at $564.8 million.

On May 6, Baird analyst Catherine Ramsey Schulte gave Twist Bioscience Corporation (NASDAQ:TWST) an unchanged rating of ‘Outperform’, and changed the price target to $43 from $70. She remains positive on the firm’s underlying momentum and its differentiated technology platform, and believes in its potential long-term upside.

In Q1 2022, Twist Bioscience Corporation (NASDAQ:TWST) posted an EPS of -$1.02, exceeding analysts’ forecasts by $0.28. Quarterly revenue increased 54.2% from the year-ago quarter to come in at $48.1 million, also beating consensus estimates by $2.9 million.

Here is what investment firm Baron Funds had to say about Twist Bioscience Corporation (NASDAQ:TWST) in its Q2 2021 investor letter:

“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future. As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”