- Oops!Something went wrong.Please try again later.
Shares of Workhorse dropped this week after it was revealed the company was not the winner for a key USPS contract. One ETF manager is using the pullback as a buying opportunity.
What Happened: Cathie Wood and the team at Ark Funds added more shares to the firm's stake in Workhorse Group (NASDAQ: WKHS) on Wednesday.
The Ark Autonomous Technology & Robotics ETF (BATS: ARKQ) added 660,500 shares of Workhorse on Wednesday, according to a daily email showing trading activity from Ark Funds.
The ETF now owns 3.2 million shares of the stock valued at $49 million. Workhorse makes up around 1.3% of the fund’s assets.
Back in December, Ark made a similar move, buying shares of Workhorse on the dip. Trucks.com reported at the time that USPS would be delaying the next-generation contract for 180,000 new vehicles.
The Ark Autonomous Technology & Robotics ETF has been one of the top-performing ETFS of the last year, with a return of over 120%.
Shares of Workhorse fell over 50% in after-hours trading on the news that the company did not get a piece of the USPS contract.
The addition of more Workhorse shares by Ark Funds could show that the fund managers believe the huge drop was unwarranted, that Workhorse has other business ventures or that it can still win a piece of the USPS contract.
Workhorse issued a statement saying it has requested additional information from the USPS on the new vehicle contract.
“The company intends to explore all avenues that are available to non-awarded finalists in a government binding process,” Workhorse said in a press release.
WKHS Price Action: Shares of Workhorse were trading near-flat at $15.12 Thursday. Shares traded over $17.50 Wednesday night around the time the Ark Funds daily email was sent out.
Photo courtesy of Workhorse.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.