Ginkgo Bioworks (NYSE:DNA) Stock Price Down 6.7% - Here's What Happened

Key Points

• Ginkgo Bioworks shares fell 6.7% in midday trading, with the stock hitting as low as $7.77 before last trading at $7.7350. Trading volume was well below normal, suggesting lighter-than-usual investor activity.
• Analyst sentiment remains cautious, with the stock carrying an average rating of “Reduce” and a consensus target price of $8.50. Recent commentary included a rating upgrade to hold from one analyst, while others reiterated sell ratings.
• Recent earnings were weak: Ginkgo reported a larger-than-expected loss of $1.39 per share and revenue of $19 million, far below estimates of $42.93 million. The company also continues to post negative margins and return on equity.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report)'s stock price dropped 6.7% during mid-day trading on Friday . The stock traded as low as $7.77 and last traded at $7.7350. Approximately 456,574 shares traded hands during trading, a decline of 61% from the average daily volume of 1,184,940 shares. The stock had previously closed at $8.29.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Wall Street Zen raised Ginkgo Bioworks from a "sell" rating to a "hold" rating in a research report on Saturday, June 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a report on Monday, April 20th. One investment analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $8.50.

Ginkgo Bioworks Trading Down 3.7%

The company's 50-day simple moving average is $8.86 and its 200 day simple moving average is $8.43. The stock has a market cap of $521.32 million, a P/E ratio of -1.49 and a beta of 1.77.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($1.39) EPS for the quarter, missing analysts' consensus estimates of ($1.21) by ($0.18). The business had revenue of $19.00 million for the quarter, compared to the consensus estimate of $42.93 million. Ginkgo Bioworks had a negative return on equity of 56.08% and a negative net margin of 215.41%.

Institutional Trading of Ginkgo Bioworks

Several hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC grew its position in shares of Ginkgo Bioworks by 113.1% during the 1st 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 period. Prescott Group Capital Management L.L.C. purchased a new position in Ginkgo Bioworks in the fourth quarter valued at approximately $4,503,000. State Street Corp grew its holdings in Ginkgo Bioworks by 38.4% during the fourth quarter. State Street Corp now owns 1,292,071 shares of the company's stock valued at $10,737,000 after purchasing an additional 358,231 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in Ginkgo Bioworks by 28,457.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 228,744 shares of the company's stock valued at $1,901,000 after purchasing an additional 227,943 shares during the period. Finally, UBS Group AG increased its position in Ginkgo Bioworks by 86.4% in the fourth quarter. UBS Group AG now owns 489,418 shares of the company's stock worth $4,067,000 after buying an additional 226,861 shares during the last quarter. 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.

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