Ginkgo Bioworks (NYSE:DNA) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down — DNA opened at $8.65 after closing at $10.32 and last traded around $8.74 (down ~9.6%), with a market cap near $577.5M and the stock trading close to its 200‑day SMA of $8.76.
• Quarterly results mixed and company remains unprofitable — Ginkgo reported (‑$1.42) EPS (beating the (‑$1.80) estimate) but missed revenue ($33.4M vs. $37.57M) and showed a negative net margin of 183.81% and negative ROE of 52.82%.
• Analyst sentiment and insider activity raise caution — the consensus is a "Reduce" rating with an average target of $8.50 (targets range roughly $5–$12), and insiders have sold 542,981 shares (~$3.55M) in the last 90 days, while insiders still own 9.72% of the stock.

Shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $10.32, but opened at $8.65. Ginkgo Bioworks shares last traded at $8.7360, with a volume of 446,658 shares changing hands.

Wall Street Analyst Weigh In

DNA has been the topic of a number of recent research reports. TD Cowen reduced their price objective on shares of Ginkgo Bioworks from $14.00 to $12.00 and set a "buy" rating on the stock in a research note on Thursday, January 8th. Wall Street Zen upgraded shares of Ginkgo Bioworks from a "sell" rating to a "hold" rating in a report on Saturday, April 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ginkgo Bioworks in a report on Monday, April 20th. Finally, BTIG Research cut their target price on shares of Ginkgo Bioworks from $9.00 to $5.00 and set a "sell" rating on the stock in a report on Thursday, March 12th. One equities research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $8.50.

Ginkgo Bioworks Stock Down 9.6%

The company's fifty day simple moving average is $7.32 and its two-hundred day simple moving average is $8.76. The company has a market capitalization of $577.53 million, a price-to-earnings ratio of -1.67 and a beta of 1.77.

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 the consensus estimate of ($1.80) by $0.38. Ginkgo Bioworks had a negative net margin of 183.81% and a negative return on equity of 52.82%. The company had revenue of $33.40 million for the quarter, compared to analyst estimates of $37.57 million.

Insider Activity at Ginkgo Bioworks

In related news, insider Jason R. Kelly sold 109,767 shares of the firm'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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Steven P. Coen sold 33,171 shares of the firm's stock in a transaction on Monday, April 13th. The stock was sold at an average price of $6.41, for a total transaction of $212,626.11. Following the sale, the insider owned 49,849 shares in the company, valued at approximately $319,532.09. The trade was a 39.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 542,981 shares of company stock valued at $3,548,999. Insiders own 9.72% of the company's stock.

Institutional Investors Weigh In On Ginkgo Bioworks

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Quarry LP acquired a new stake in shares of Ginkgo Bioworks during the third quarter worth $29,000. Raymond James Financial Inc. acquired a new stake in shares of Ginkgo Bioworks during the second quarter worth $29,000. Strategic Advocates LLC raised its holdings in shares of Ginkgo Bioworks by 808.9% during the fourth quarter. Strategic Advocates LLC now owns 4,381 shares of the company's stock worth $36,000 after acquiring an additional 3,899 shares during the period. Strs Ohio bought a new position in Ginkgo Bioworks in the third quarter valued at $44,000. Finally, Daiwa Securities Group Inc. bought a new position in Ginkgo Bioworks in the second quarter valued at $71,000. 78.63% of the stock is currently owned by institutional investors and hedge funds.

About Ginkgo Bioworks

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.

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