Ginkgo Bioworks (NYSE:DNA) Shares Up 12.3% - Should You Buy?

Key Points

• Ginkgo Bioworks shares surged 12.3% to $12.73, though trading volume was 73% below its average. The company has a market capitalization of approximately $850 million and remains unprofitable, with a negative P/E ratio and projected full-year EPS of -$3.20.
• Analyst sentiment remains cautious: the stock carries a consensus “Reduce” rating and an average price target of $6.33. Recent broker actions included downgrades to “Hold” and reiterated “Sell” ratings.
• Ginkgo’s latest quarterly results beat EPS expectations but missed revenue estimates, reporting a $0.75 per-share loss and $20.16 million in revenue versus $24.05 million expected. Insiders sold 7,733 shares over the past 90 days, while institutional investors and hedge funds own 78.63% of the stock.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) was up 12.3% on Friday. The stock traded as high as $12.18 and last traded at $12.73. Approximately 373,851 shares were traded during trading, a decline of 73% from the average session volume of 1,394,338 shares. The stock had previously closed at $11.34.

Analyst Upgrades and Downgrades

Several brokerages have commented on DNA. Wall Street Zen raised Ginkgo Bioworks from a "sell" rating to a "hold" rating in a research report on Saturday, September 26th. TD Cowen downgraded shares of Ginkgo Bioworks from a "buy" rating to a "hold" rating and lowered their price objective for the stock from $12.00 to $9.00 in a research note on Friday, August 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a research report on Friday, July 17th. BTIG Research reiterated a "sell" rating and set a $5.00 target price on shares of Ginkgo Bioworks in a research note on Friday, September 4th. Finally, Zacks Research raised shares of Ginkgo Bioworks to a "hold" rating in a report on Monday, August 17th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Ginkgo Bioworks has a consensus rating of "Reduce" and an average price target of $6.33.

Ginkgo Bioworks Trading Up 11.3%

The company has a market cap of $849.83 million, a price-to-earnings ratio of -2.52 and a beta of 1.79. The company has a fifty day moving average price of $8.46 and a two-hundred day moving average price of $8.33.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.75) EPS for the quarter, beating analysts' consensus estimates of ($0.90) by $0.15. Ginkgo Bioworks had a negative return on equity of 60.27% and a negative net margin of 259.96%.The business had revenue of $20.16 million during the quarter, compared to analyst estimates of $24.05 million. Sell-side analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.2 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Christian Henry sold 5,000 shares of the firm's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $7.08, for a total transaction of $35,400.00. Following the completion of the transaction, the director directly owned 19,310 shares of the company's stock, valued at approximately $136,714.80. This trade represents a 20.57% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Steven Coen sold 2,403 shares of Ginkgo Bioworks 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 sale, the insider owned 49,448 shares in the company, valued at approximately $741,720. This trade represents a 4.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 7,733 shares of company stock valued at $73,748. Corporate insiders own 12.69% of the company's stock.

Institutional Investors Weigh In On Ginkgo Bioworks

Institutional investors have recently added to or reduced their stakes in the stock. Balance Capital Partners L.P. acquired a new stake in Ginkgo Bioworks in the 2nd quarter valued at $1,972,179. Renaissance Technologies LLC acquired a new position in Ginkgo Bioworks during the first quarter worth $616,000. Integrated Wealth Concepts LLC bought a new position in shares of Ginkgo Bioworks during the second quarter valued at $50,000. Arizona State Retirement System bought a new position in shares of Ginkgo Bioworks during the second quarter valued at $102,000. Finally, AXQ Capital LP acquired a new stake in shares of Ginkgo Bioworks in the 2nd quarter valued at $262,000. 78.63% of the stock is owned by institutional investors and hedge funds.

Ginkgo Bioworks Company Profile

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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