Ginkgo Bioworks (NYSE:DNA) Shares Up 9.9% - Time to Buy?

Key Points

• Ginkgo Bioworks shares jumped 9.9% to about $7.45 in Tuesday trading, but remained below both its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: two analysts rate the stock “Hold” and two rate it “Sell,” resulting in a consensus “Reduce” rating and a $7.00 target price.
• The company beat quarterly EPS expectations, reporting a loss of $0.75 per share versus the projected $0.90 loss, but revenue of $20.16 million missed estimates and profitability remained weak, with a negative net margin of 259.96%.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) shares rose 9.9% during mid-day trading on Tuesday . The company traded as high as $7.55 and last traded at $7.4530. 563,050 shares changed hands during trading, a decline of 52% from the average daily volume of 1,171,593 shares. The stock had previously closed at $6.78.

Analyst Ratings Changes

A number of equities research analysts have issued reports on DNA shares. Wall Street Zen raised shares of Ginkgo Bioworks from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Zacks Research raised shares of Ginkgo Bioworks to a "hold" rating in a research report on Monday, August 17th. TD Cowen lowered Ginkgo Bioworks from a "buy" rating to a "hold" rating and reduced their target price for the company from $12.00 to $9.00 in a report on Friday, August 7th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a research report on Friday, July 17th. Two equities research 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, the stock has an average rating of "Reduce" and a consensus target price of $7.00.

Ginkgo Bioworks Stock Performance

The firm has a market capitalization of $502.02 million, a P/E ratio of -1.49 and a beta of 1.78. The stock has a 50 day moving average of $8.49 and a 200-day moving average of $8.13.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.75) earnings per share for the quarter, topping analysts' consensus estimates of ($0.90) by $0.15. The firm had revenue of $20.16 million during the quarter, compared to analyst estimates 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, sell-side analysts expect that Ginkgo Bioworks Holdings, Inc. will post -3.2 EPS for the current year.

Institutional Investors Weigh In On Ginkgo Bioworks

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System lifted its position in shares of Ginkgo Bioworks by 1,663.2% during the second quarter. California State Teachers Retirement System now owns 543,980 shares of the company's stock worth $54,892,000 after acquiring an additional 513,128 shares in the last quarter. AXQ Capital LP bought a new stake in shares of Ginkgo Bioworks during the 2nd quarter valued at $262,000. Balance Capital Partners L.P. purchased a new stake in Ginkgo Bioworks during the 2nd quarter worth about $1,972,179,000. Entropy Technologies LP bought a new position in Ginkgo Bioworks in the 1st quarter worth about $67,000. Finally, Renaissance Technologies LLC bought a new position in Ginkgo Bioworks in the 1st quarter worth about $616,000. Institutional investors own 78.63% of the company's stock.

About Ginkgo Bioworks

Ginkgo Bioworks, Inc is a synthetic biology company that designs custom microbes for customers across a range of industries. Utilizing a proprietary organism foundry platform, the company engineers cells to produce high-value chemicals, enzymes, and other biological materials. By integrating automation, data analytics and machine learning, Ginkgo Bioworks seeks to accelerate the development of biologically derived solutions at industrial scale.

The company's services span the entire development cycle, from genetic design and strain optimization to fermentation and downstream processing.

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