Ginkgo Bioworks (NYSE:DNA) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Ginkgo Bioworks from hold to sell, adding to a bearish analyst outlook on the stock.
• Other recent research has also been negative, including BTIG cutting its price target to $5 and Weiss Ratings reaffirming a sell rating; MarketBeat shows a consensus rating of Reduce with an average target price of $8.50.
• Ginkgo Bioworks reported a smaller-than-expected quarterly loss, but revenue missed estimates, while insiders have recently sold shares and the company continues to post negative margins and weak profitability metrics.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

DNA has been the topic of a number of other research reports. BTIG Research decreased their target price on shares of Ginkgo Bioworks from $9.00 to $5.00 and set a "sell" rating on the stock in a research note on Thursday, March 12th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a research note on Monday, April 20th. One research analyst has rated the stock with a Buy rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $8.50.

Ginkgo Bioworks Stock Performance

NYSE DNA opened at $8.97 on Friday. The firm's fifty day moving average price is $7.32 and its two-hundred day moving average price is $8.76. The stock has a market cap of $555.15 million, a PE ratio of -1.67 and a beta of 1.77. Ginkgo Bioworks has a fifty-two week low of $5.37 and a fifty-two week high of $17.58.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($1.42) earnings per share for the quarter, topping analysts' consensus estimates of ($1.80) by $0.38. The firm had revenue of $33.40 million for the quarter, compared to analysts' expectations of $37.57 million. Ginkgo Bioworks had a negative net margin of 215.41% and a negative return on equity of 53.15%.

Insider Activity

In other Ginkgo Bioworks news, insider Reshma P. Shetty sold 124,727 shares of the company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $6.43, for a total transaction of $801,994.61. Following the sale, the insider owned 436,422 shares of the company's stock, valued at approximately $2,806,193.46. This represents a 22.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jason R. Kelly sold 109,767 shares of the company's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $6.40, for a total transaction of $702,508.80. Following the sale, the insider directly owned 316,483 shares in the company, valued at $2,025,491.20. This trade represents a 25.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 542,981 shares of company stock worth $3,548,999. 9.72% of the stock is owned by insiders.

Institutional Trading of Ginkgo Bioworks

A number of institutional investors have recently bought and sold shares of DNA. AQR Capital Management LLC boosted its position in Ginkgo Bioworks by 322.6% during the first quarter. AQR Capital Management LLC now owns 158,939 shares of the company's stock valued at $906,000 after acquiring an additional 121,326 shares during the last quarter. Millennium Management LLC boosted its position in Ginkgo Bioworks by 113.1% during the first quarter. Millennium Management LLC now owns 1,427,600 shares of the company's stock valued at $8,137,000 after acquiring an additional 757,535 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Ginkgo Bioworks by 25.4% during the first quarter. Goldman Sachs Group Inc. now owns 686,767 shares of the company's stock valued at $3,915,000 after acquiring an additional 139,126 shares during the last quarter. Acadian Asset Management LLC bought a new stake in Ginkgo Bioworks during the first quarter valued at $120,000. Finally, Rhumbline Advisers bought a new stake in Ginkgo Bioworks during the second quarter valued at $666,000. Institutional investors own 78.63% of the company's stock.

Ginkgo Bioworks Company Profile

Ginkgo Bioworks, Inc is a synthetic biology company that designs custom microbes for customers across a range of industries. Utilizing a proprietary organism foundry platform, the company engineers cells to produce high-value chemicals, enzymes, and other biological materials. By integrating automation, data analytics and machine learning, Ginkgo Bioworks seeks to accelerate the development of biologically derived solutions at industrial scale.

The company's services span the entire development cycle, from genetic design and strain optimization to fermentation and downstream processing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.