Cathie Wood’s Top 5 Small-Cap Stock Picks

4. Accolade, Inc. (NASDAQ:ACCD)

ARK Investment Management’s Stake Value: $294,198,000

Percentage of ARK Investment Management’s 13F Portfolio: 0.54%

Market Cap: $2.667 billion

Number of Hedge Fund Holders: 24

The fourth stock on our list of Cathie Wood’s top 15 small-cap stock picks is Accolade, Inc. (NASDAQ:ACCD), which is a company leveraging artificial intelligence to improve healthcare for employees, by providing intelligent benefit packages to employers. The solutions at Accolade, Inc. (NASDAQ:ACCD) are designed to assess the needs of subjects that will enable them to live a healthier life, and translate those needs into data-driven insights so that customers can be guided towards a better life with innovative technology and care options. 

Wood’s ARK Investment Management owns 5.41 million shares in Accolade, Inc. (NASDAQ:ACCD), amounting to $294.1 million, and making up 0.54% of Wood’s 13F portfolio. 

ARK Investment Management is the leading stakeholder in Accolade, Inc. (NASDAQ:ACCD). Overall, 24 hedge funds reported owning stakes in Accolade, Inc. (NASDAQ:ACCD), worth $594.8 million, up from 19 in the previous quarter, with stakes valued at $471.6 million. 

On October 7, Accolade, Inc. (NASDAQ:ACCD) reported earnings for the third quarter. The company stated earnings per share of -$0.59, missing estimates by -$0.07. The estimated revenue was exceeded by $2.92 million at $73.29 million. 

Needham analyst Ryan MacDonald kept a Buy rating on the stock, but lowered the price target from $68 to $56. The analyst explained that Accolade, Inc. (NASDAQ:ACCD)’s solid Q2 results, in addition to its new products, Care and One, will help strengthen customer relationships, even if their financial rewards will not be reaped before 2021. The lower price target was placed due to the broad-based multiple compression across the digital health sector.