Ginkgo Bioworks (NYSE:DNA) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• Trading volume surged 111% to about 2.69 million shares, while Ginkgo Bioworks’ stock rose from a previous close of $12.35 to $14.878.
• Analyst sentiment remains bearish: the stock has a consensus rating of “Reduce” and an average price target of $6.33, well below its reported trading price.
• Ginkgo reported a quarterly loss of $0.75 per share and revenue of $20.16 million, missing revenue expectations; the company also posted deeply negative margins and return on equity.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) saw unusually-strong trading volume on Monday. Approximately 2,686,466 shares changed hands during mid-day trading, an increase of 111% from the previous session's volume of 1,273,783 shares. The stock last traded at $14.8780 and had previously closed at $12.35.

Wall Street Analysts Forecast Growth

DNA has been the topic of several recent research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a report on Friday, July 17th. Oppenheimer set a $5.00 price target on shares of Ginkgo Bioworks in a research report on Wednesday, September 9th. Zacks Research raised shares of Ginkgo Bioworks to a "hold" rating in a report on Monday, August 17th. Wall Street Zen raised shares of Ginkgo Bioworks from a "sell" rating to a "hold" rating in a report on Saturday, September 26th. Finally, BTIG Research restated a "sell" rating and set a $5.00 target price on shares of Ginkgo Bioworks in a research report on Friday, September 4th. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $6.33.

Ginkgo Bioworks Price Performance

The firm's 50 day moving average is $8.07 and its 200 day moving average is $8.17. The company has a market cap of $984.51 million, a PE ratio of -2.92 and a beta of 1.79.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.75) earnings per share for the quarter, topping the consensus estimate of ($0.90) by $0.15. The firm had revenue of $20.16 million for the quarter, compared to analysts' expectations of $24.05 million. Ginkgo Bioworks had a negative net margin of 259.96% and a negative return on equity of 60.27%. As a group, analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.2 EPS for the current year.

Insider Activity

In other news, Director Christian Henry sold 5,000 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $7.08, for a total transaction of $35,400.00. Following the completion of the transaction, the director owned 19,310 shares of the company's stock, valued at approximately $136,714.80. The trade was a 20.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 12.69% of the company's stock.

Hedge Funds Weigh In On Ginkgo Bioworks

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Balance Capital Partners L.P. purchased a new position in Ginkgo Bioworks in the second quarter worth $1,972,179. Renaissance Technologies LLC purchased a new stake in Ginkgo Bioworks during the first quarter valued at about $616,000. Inspire Investing LLC lifted its stake in Ginkgo Bioworks by 46.4% during 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 during the last quarter. AXQ Capital LP bought a new stake in Ginkgo Bioworks during the second quarter worth about $262,000. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Ginkgo Bioworks by 23.8% in the 1st 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 in the last quarter. Hedge funds and other institutional investors own 78.63% of the company's stock.

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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