A Major Fund Bets on Beaten-Down Gene Editing Stock

As 2026 begins, a notable institutional investor has made a decisive move in the shares of gene-editing firm Intellia Therapeutics. ARK Invest, the fund led by Cathie Wood, executed a significant purchase at the end of 2025, positioning itself against the stock's pronounced downtrend. This action raises the question of whether the current valuation presents a compelling entry point.

Confirmed regulatory filings show that ARK Invest acquired a total of 145,153 shares of Intellia Therapeutics in the final trading days of 2025. The transaction had an approximate value of $1.33 million.

This buying activity occurred with the equity trading at severely depressed levels. The stock concluded the year at $8.99, hovering near its 52-week low. Market observers interpret this purchase as a signal that ARK Invest views the risk-reward profile at this price as favorable.

Key Transaction Details:
* Purchaser: ARK Invest (Cathie Wood)
* Share Volume: 145,153
* Transaction Value: ~$1.33 million
* Timing: Late December 2025
* Price Context: Purchase executed near annual lows

Regulatory Setback Drives Sharp Decline

Intellia Therapeutics enters the new year with a heavily damaged technical chart. The closing price of $8.99 stands far below the 52-week high of approximately $28.25. This steep decline was triggered by regulatory challenges in late 2025. A clinical hold significantly dampened market sentiment, driving the share price as low as the $6 range before a modest recovery ensued.

Should investors sell immediately? Or is it worth buying Intellia Therapeutics?

The company's current market capitalization of roughly $1.09 billion is now substantially below its prior peak valuations. ARK Invest's decision to build a position at this level suggests that, from this investor's perspective, the sell-off may have been overdone.

Diverging Views from Analysts and the Market

While ARK Invest is clearly accumulating shares, analyst sentiment remains more cautious. As of December 31, 2025, Zacks Investment Research maintained a "Hold" (Rank #3) rating on the stock. This stance reflects ongoing uncertainty surrounding the company's near-term clinical timelines.

The market currently presents a clash of perspectives:

• Technical Outlook: The dominant trend remains bearish, with a sustained recovery above the $10 mark seen as a critical near-term signal.
• Institutional Activity: Some funds are using the pronounced weakness to establish positions, betting on a future resolution of the regulatory overhang.

The Road Ahead

Despite trading nearly 68% below its yearly high, Intellia has attracted over $1.3 million in fresh institutional capital in a short period. In the coming weeks, focus will center on whether the stock can stabilize around the $9 level. This will be a key test to determine if the late-year buying by ARK Invest can form a foundation for a bottom in early 2026.