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Cathie Wood Buys More Workhorse Shares On USPS Delay Sell-Off

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Cathie Wood Buys More Workhorse Shares On USPS Delay Sell-Off

More Workhorse Group Inc (NASDAQ: WKHS) shares were added to one of Cathie Wood’s Ark ETFs Wednesday.

What Happened: Wood added 153,000 shares of Workhorse to the Ark Autonomous Technology & Robotics ETF (BATS: ARKQ).

The ETF now owns 1.36 million shares of Workhorse. The stock is the 18th largest position in the ETF with assets of $27.8 million and makes up 2.4% of the fund’s assets.

Why It’s Important: Workhorse shares fell as news came from Trucks.com that the U.S. Postal Service was delaying a $6 billion contract for 180,000 delivery vehicles. The USPS confirmed the delay.

A decision has now been pushed out to the first three months of 2021, which is the second fiscal quarter for the USPS.

Workhorse is one of three finalists for the contract along with Oshkosh Corporation (NYSE: OSK) and Karsan.

Wood could be betting that Workhorse will still win the contract and the market sell-off was an overreaction. The contract award from the USPS has been delayed several times previously.

WKSH Price Action: Shares of Workhorse were down 19% to $20.43 Wednesday. Shares are trading 6% higher to $21.59 in pre-market trading Thursday.

The Ark Autonomous Technology & Robotics ETF is up 86% in 2020.

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