Cathie Wood Just Bought a Lot of Velo3D (VLD) Stock. Here’s Why.

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  • Cathie Wood’s Ark Invest purchased 419,575 shares of Velo3D (NYSE:VLD)
  • Velo3d reported Q1 earnings yesterday
  • The company reiterated its 2022 revenue guidance of $89 million

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Velo3D is in the spotlight today after Ark Invest disclosed a sizable purchase of VLD stock. Velo3D produces metal laser sintering printing machines for 3D printing. The company also boasts SpaceX as a customer.

Yesterday, the company disclosed first-quarter earnings as well. For Q1, revenue came in at $12.2 million, up 917% year-over-year (YOY) from $1.2 million. The company also reiterated 2022 full-year revenue guidance of $89 million. However, Velo3D does remain unprofitable. It reported a net loss of $65.3 million for the period.

CEO Benny Buller commented on the results:

“Demand for our industry-leading Sapphire systems remains high as our total backlog exiting the quarter increased more than 80 percent year over year to $55 million and now have more than 75 percent of our 2022 revenue either recognized or booked.”

Today, VLD stock closed down by about 5.5% after earnings. However, Wood’s purchase of the stock through two exchange-traded funds (ETFs) suggests that the legendary investor is bullish on this 3D printing company.

Cathie Wood Buys VLD Stock

Yesterday, the ARK Space Exploration & Innovation ETF (BATS:ARKX) purchased 89,246 shares of Velo3D. The ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) also purchased 330,329 shares. In total, the purchases amounted to around $1.13 million based on yesterday’s closing price of $2.69.

After the purchases, VLD accounts for 1.58% of ARKX, making it the 25th largest holding in the fund. The stock accounts for 1.62% of ARKQ as well, making it the 23rd largest position. In total, Ark owns 10.6 million shares of the company.

Velo3D has lost more than 65% of its value since the beginning of 2022. Wood may be taking advantage of its lowered prices and snatching up shares for the long term.

Who Else Is Betting Big on VLD?

Tracking institutional is important, as these large funds provide liquidity and price support for stocks. During Q4, 56 funds reported owning VLD, an increase of 15 funds from the prior quarter. Meanwhile, the institutional put/call ratio lies at 0.23. This signals that institutions own more call options against the company than put options by a wide margin.

With that in mind, let’s take a look at the five largest shareholders as of Q4

  1. Deer Management Company: 37.86 million shares.
  2. VK Services: 30.35 million shares.
  3. Ark Invest: 10.6 million shares.
  4. Bamco: 8.3 million shares.
  5. Vanguard Group: 3.39 million shares.

It should be noted that Khosla Ventures and the PIV Fund own 30.35 million and 22.87 million shares, respectively. However, the positions for these two funds are only accurate as of Q3 2021.

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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.