Ginkgo Bioworks (NYSE:DNA) Shares Climb 17.9% on Earnings Beat

Key Points

• Ginkgo Bioworks shares jumped 17.9% after quarterly results beat expectations: adjusted loss per share was $0.64 versus a $0.68 consensus loss, while revenue of $27.71 million exceeded the $21.50 million estimate.
• Despite the rally, analyst sentiment remained cautious: the average rating was “Reduce,” with an average price target of $7, below the stock’s post-earnings trading price.
• Insiders sold 136,525 shares worth about $1.38 million over the prior 90 days. The company also reported a negative net margin of 259.96%.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) rose 17.9% on Friday following a stronger than expected earnings report. The company traded as high as $11.56 and last traded at $11.7440. Approximately 359,468 shares traded hands during trading, a decline of 76% from the average daily volume of 1,503,630 shares. The stock had previously closed at $9.96.

The company reported ($0.64) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.68) by $0.04. The company had revenue of $27.71 million for the quarter, compared to the consensus estimate of $21.50 million. Ginkgo Bioworks had a negative net margin of 259.96% and a negative return on equity of 60.27%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on DNA shares. Wall Street Zen upgraded Ginkgo Bioworks from a "sell" rating to a "hold" rating in a research report on Saturday, September 26th. TD Cowen upped their price objective on Ginkgo Bioworks from $9.00 to $11.00 and gave the company a "hold" rating in a research note on Tuesday, October 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a research report on Thursday, October 15th. Oppenheimer set a $5.00 price objective on Ginkgo Bioworks in a research report on Wednesday, September 9th. Finally, BTIG Research reiterated a "sell" rating and issued a $5.00 target price on shares of Ginkgo Bioworks in a research note on Friday, September 4th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Ginkgo Bioworks currently has an average rating of "Reduce" and an average target price of $7.00.

Insider Activity

In related news, insider Steven Coen sold 2,403 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $15.00, for a total transaction of $36,045.00. Following the completion of the transaction, the insider directly owned 49,448 shares of the company's stock, valued at $741,720. This represents a 4.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Jason Kelly sold 45,682 shares of the firm's stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $10.14, for a total transaction of $463,215.48. Following the completion of the sale, the insider owned 129,065 shares of the company's stock, valued at approximately $1,308,719.10. The trade was a 26.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 136,525 shares of company stock valued at $1,379,699 over the last ninety days. 12.69% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ginkgo Bioworks

A number of large investors have recently modified their holdings of the business. Q Fund Management Hong Kong Ltd acquired a new position in Ginkgo Bioworks during the third quarter worth $505,000. Integrated Wealth Concepts LLC purchased a new position in Ginkgo Bioworks in the second quarter worth $50,000. Arizona State Retirement System purchased a new position in Ginkgo Bioworks in the second quarter worth $102,000. AXQ Capital LP acquired a new stake in Ginkgo Bioworks in the second quarter valued at $262,000. Finally, Balance Capital Partners L.P. acquired a new stake in Ginkgo Bioworks in the second quarter valued at $1,972,179. 78.63% of the stock is owned by hedge funds and other institutional investors.

Ginkgo Bioworks Stock Up 15.9%

The company has a market cap of $777.64 million, a price-to-earnings ratio of -2.30 and a beta of 1.74. The business has a fifty day simple moving average of $9.82 and a 200 day simple moving average of $8.61.

About Ginkgo Bioworks

Ginkgo Bioworks is a biotechnology company that develops and deploys biological systems for commercial and industrial applications. Its platform is designed to help customers program cells to produce a wide range of products, including pharmaceuticals, food ingredients, agricultural inputs, specialty chemicals and materials. The company combines biological engineering, automation, software and data science to design, build and test engineered organisms.

Ginkgo provides services through its cell-programming platform and biological engineering foundry, supporting activities such as genetic design, strain construction, laboratory testing and process development.

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