Ginkgo Bioworks (NYSE:DNA) Shares Down 7.2% - Should You Sell?

Key Points

• Ginkgo Bioworks' stock fell by 7.2% to $12.80, with trading volume plummeting by 80% compared to its average, indicating a notable decline in investor interest.
• Despite the recent downturn, analysts maintain a "buy" rating from Cowen, while the overall consensus rating is a "Hold" with a price target of $8.50.
• The company reported a quarterly revenue of $49.60 million, surpassing expectations, but continues to face challenges with a negative net margin of 136.56% and projected earnings per share of -10.02 for the fiscal year.

Shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) dropped 7.2% during trading on Tuesday . The stock traded as low as $12.80 and last traded at $12.80. Approximately 309,603 shares changed hands during trading, a decline of 80% from the average daily volume of 1,523,097 shares. The stock had previously closed at $13.80.

Analyst Upgrades and Downgrades

Separately, Cowen reiterated a "buy" rating on shares of Ginkgo Bioworks in a research report on Friday, August 8th. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Ginkgo Bioworks has an average rating of "Buy" and a consensus price target of $10.00.

Ginkgo Bioworks Stock Up 6.4%

The firm has a market cap of $740.47 million, a PE ratio of -2.13 and a beta of 1.50. The company's 50 day moving average price is $11.55 and its two-hundred day moving average price is $9.37.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($1.10) earnings per share for the quarter, beating the consensus estimate of ($1.44) by $0.34. Ginkgo Bioworks had a negative net margin of 136.56% and a negative return on equity of 43.25%. The business had revenue of $49.60 million for the quarter, compared to the consensus estimate of $41.60 million. Ginkgo Bioworks has set its FY 2025 guidance at EPS. On average, analysts expect that Ginkgo Bioworks Holdings, Inc. will post -10.02 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ginkgo Bioworks

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Raymond James Financial Inc. purchased a new position in Ginkgo Bioworks in the 2nd quarter worth about $29,000. Ameritas Investment Partners Inc. purchased a new position in Ginkgo Bioworks in the 2nd quarter worth about $45,000. US Bancorp DE increased its stake in Ginkgo Bioworks by 43.5% in the 1st quarter. US Bancorp DE now owns 6,302 shares of the company's stock worth $36,000 after buying an additional 1,911 shares during the period. Daiwa Securities Group Inc. purchased a new position in Ginkgo Bioworks in the 2nd quarter worth about $71,000. Finally, Police & Firemen s Retirement System of New Jersey purchased a new position in Ginkgo Bioworks in the 2nd quarter worth about $99,000. Hedge funds and other institutional investors own 78.63% of the company's stock.

About Ginkgo Bioworks

Ginkgo Bioworks Holdings, Inc, together with its subsidiaries, develops platform for cell programming in the United States. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. It serves pharma and biotech, agriculture, industrial and environment, food and nutrition, consumer and technology, and government and defense industries.