ZINGER KEY POINTS
- From mostly being a Tesla seller, Cathie Wood's Ark Invest began accumulating Tesla stock in the recent week.
- The fund made cumulative purchases worth about $28 million of the stock in three trading sessions
Cathie Wood-owned Ark Invest began accumulating shares of Tesla, Inc. last week, reversing from being a seller for consecutive months.
What Happened: The string of stock sales reduced Tesla to being the second ranker in Ark's flagship fund – the ARK Innovation ETF(ARKK) in the week ending May 20.
Ark Invest holds Tesla in two of its ETFs – the ARKK and the ARK Next Generation Internet ETF(ARKW). The Wood-run fund snapped up Tesla shares in the first three trading sessions of the week. In the run-up to the current week, the stock had posted weekly declines for four straight weeks.
From the start of the year through May 20, Tesla stock had shed about 37%. Ark apparently began buying the dip. Notwithstanding the purchases, Tesla is still second in terms of ARKK's weighting, behind Zoom Video Communications, Inc.. The former's weighting is 8.63% compared to Zoom's 9.50%.
Tesla's weighting in the ARKW is 7.19% and the stock is ranked fourth behind Zoom Video, Roku, Inc. Grayscale Bitcoin.
Here're the details of Ark's Tesla purchases in the week ended May 27:
Cumulatively, Ark bought 43,282 Tesla shares through both the funds during the week, with the cumulative value of the purchases at $27.96 million.
Tesla stock closed Friday's session 7.33% higher at $759.63, according to Benzinga Pro.