Ginkgo Bioworks (NYSE:DNA) Trading 10.8% Higher - Should You Buy?

Key Points

• Ginkgo Bioworks shares jumped 10.8% to about $8.96, although trading volume was below average. The stock’s consensus rating remains “Reduce,” with a consensus price target of $8.50.
• Analyst sentiment is largely negative: one analyst rates the stock a Buy, while two rate it a Sell, including a recent downgrade from Hold to Sell.
• The company reported weak quarterly results, with an EPS loss of $1.39 versus estimates of $1.21 and revenue of $19.0 million versus expectations of $42.93 million; it also posted deeply negative margins and return on equity.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report)'s share price shot up 10.8% on Monday . The stock traded as high as $8.90 and last traded at $8.9630. Approximately 828,992 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 1,155,742 shares. The stock had previously closed at $8.09.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Wall Street Zen lowered Ginkgo Bioworks from a "hold" rating to a "sell" rating in a research report on Saturday, July 18th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ginkgo Bioworks in a research report on Friday, July 17th. One research 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, Ginkgo Bioworks has a consensus rating of "Reduce" and a consensus price target of $8.50.

Ginkgo Bioworks Trading Up 10.6%

The business's 50-day simple moving average is $8.79 and its two-hundred day simple moving average is $8.34. The firm has a market cap of $584.39 million, a price-to-earnings ratio of -1.67 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) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.21) by ($0.18). Ginkgo Bioworks had a negative return on equity of 56.08% and a negative net margin of 215.41%.The firm had revenue of $19.00 million during the quarter, compared to analyst estimates of $42.93 million.

Institutional Trading of Ginkgo Bioworks

A number of institutional investors have recently bought and sold shares of DNA. Entropy Technologies LP bought a new position in shares of Ginkgo Bioworks in the 1st quarter worth about $67,000. Renaissance Technologies LLC bought a new stake in shares of Ginkgo Bioworks during the 1st quarter valued at about $616,000. Dimensional Fund Advisors LP grew its stake in Ginkgo Bioworks by 23.8% during the first quarter. Dimensional Fund Advisors LP now owns 127,048 shares of the company's stock worth $779,000 after purchasing an additional 24,434 shares during the period. Bank of New York Mellon Corp grew its stake in Ginkgo Bioworks by 1.8% during the first quarter. Bank of New York Mellon Corp now owns 123,959 shares of the company's stock worth $760,000 after purchasing an additional 2,178 shares during the period. Finally, Inspire Investing LLC increased its holdings in Ginkgo Bioworks by 46.4% in the first quarter. Inspire Investing LLC now owns 83,905 shares of the company's stock worth $514,000 after purchasing an additional 26,612 shares in the last quarter. Institutional investors own 78.63% of the company's stock.

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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