Insider Selling: Ginkgo Bioworks (NYSE:DNA) Insider Sells 22,369 Shares of Stock

Key Points

• Insider sale: Reshma Shetty sold 22,369 Ginkgo Bioworks shares for approximately $226,822 to cover tax withholding from vested equity awards, reducing her stake by 4.7%.
• Financial performance remains weak: Ginkgo reported a quarterly loss of $0.75 per share, though it beat estimates, while revenue of $20.16 million fell short of expectations and the company posted sharply negative margins.
• Analyst sentiment is cautious: The stock carries a consensus “Reduce” rating with an average price target of $7.00, despite recent institutional buying and shares trading near $9.97.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) insider Reshma Shetty sold 22,369 shares of the company's stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $10.14, for a total transaction of $226,821.66. Following the completion of the sale, the insider directly owned 453,951 shares of the company's stock, valued at $4,603,063.14. The trade was a 4.70% decrease in their position. The sale was disclosed in a document filed 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.

Ginkgo Bioworks Stock Up 1.2%

Shares of NYSE DNA traded up $0.11 during midday trading on Wednesday, reaching $9.97. 1,766,599 shares of the company's stock traded hands, compared to its average volume of 1,454,035. The stock's 50 day simple moving average is $8.91 and its 200-day simple moving average is $8.60. Ginkgo Bioworks Holdings, Inc. has a one year low of $5.37 and a one year high of $18.22. The company has a market cap of $671.65 million, a price-to-earnings ratio of -1.99 and a beta of 1.79.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.75) EPS for the quarter, topping analysts' consensus estimates of ($0.90) by $0.15. The company had revenue of $20.16 million during the quarter, compared to the consensus estimate of $24.05 million. Ginkgo Bioworks had a negative net margin of 259.96% and a negative return on equity of 60.27%. Equities analysts predict that Ginkgo Bioworks Holdings, Inc. will post -3.20 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Q Fund Management Hong Kong Ltd acquired a new position in Ginkgo Bioworks during the 3rd quarter valued at about $505,000. Integrated Wealth Concepts LLC acquired a new stake in Ginkgo Bioworks in the second quarter worth about $50,000. Arizona State Retirement System acquired a new stake in Ginkgo Bioworks in the second quarter worth about $102,000. AXQ Capital LP acquired a new stake in Ginkgo Bioworks in the second quarter worth about $262,000. Finally, Balance Capital Partners L.P. purchased a new stake in shares of Ginkgo Bioworks during the second quarter worth about $1,972,179. 78.63% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

DNA has been the topic of a number of analyst reports. TD Cowen boosted their target price on shares of Ginkgo Bioworks from $9.00 to $11.00 and gave the stock a "hold" rating in a report on Tuesday, October 13th. Zacks Research upgraded shares of Ginkgo Bioworks to a "hold" rating in a report on Monday, August 17th. Oppenheimer set a $5.00 price objective on shares of Ginkgo Bioworks in a research report on Wednesday, September 9th. BTIG Research reiterated a "sell" rating and set a $5.00 price objective on shares of Ginkgo Bioworks in a research note on Friday, September 4th. Finally, Wall Street Zen raised shares of Ginkgo Bioworks from a "sell" rating to a "hold" rating in a research report on Saturday, September 26th. Two investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $7.00.

About Ginkgo Bioworks

Ginkgo Bioworks, Inc is a biotechnology company that develops biological engineering technologies and services. Its platform is designed to help customers program cells and microorganisms to produce products or perform functions for applications in areas such as pharmaceuticals, agriculture, food, chemicals and materials.

The company combines biological research, laboratory automation, genetic engineering, data analysis and software through its cell-programming platform and foundry operations.

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