Ginkgo Bioworks (NYSE:DNA) Stock Falls 4.5% - Should You Sell?

Key Points

• Ginkgo Bioworks shares fell 4.5% to about $11.47, with trading volume 51% below its average.
• Analysts’ consensus rating is “Reduce,” with an average price target of $7.00; ratings cited include two “Hold” and two “Sell.”
• The company beat quarterly expectations, reporting a loss of $0.64 per share versus an estimated $0.68 loss and revenue of $27.71 million versus $21.50 million expected. Insiders also sold 136,525 shares over the past three months, with sales described as covering tax withholding on vested equity awards.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) shares traded down 4.5% on Wednesday. The stock traded as low as $11.63 and last traded at $11.4710. 749,288 shares changed hands during trading, a decline of 51% from the average session volume of 1,521,052 shares. The stock had previously closed at $12.01.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on DNA shares. BTIG Research restated a "sell" rating and issued a $5.00 target price on shares of Ginkgo Bioworks in a report on Friday, September 4th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a report on Thursday, October 15th. TD Cowen increased their price target on Ginkgo Bioworks from $9.00 to $11.00 and gave the company a "hold" rating in a research report on Tuesday, October 13th. Zacks Research raised Ginkgo Bioworks to a "hold" rating in a research note on Monday, August 17th. Finally, Wall Street Zen upgraded Ginkgo Bioworks from a "sell" rating to a "hold" rating in a report on Saturday, September 26th. Two analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Ginkgo Bioworks currently has a consensus rating of "Reduce" and an average price target of $7.00.

Ginkgo Bioworks Stock Performance

The firm's 50 day simple moving average is $10.11 and its 200-day simple moving average is $8.64. The company has a market capitalization of $731.31 million, a price-to-earnings ratio of -2.60 and a beta of 1.74.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported ($0.64) EPS for the quarter, topping the consensus estimate of ($0.68) by $0.04. The business had revenue of $27.71 million during the quarter, compared to analysts' expectations of $21.50 million. Ginkgo Bioworks had a negative return on equity of 54.95% and a negative net margin of 249.20%. As a group, equities analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.20 earnings per share for the current fiscal year.

Insider Activity

In other Ginkgo Bioworks news, major shareholder Barry Canton sold 22,369 shares of the stock in a transaction that occurred on Monday, October 19th. The shares were sold at an average price of $10.14, for a total value of $226,821.66. Following the completion of the sale, the insider owned 453,951 shares in the company, valued at $4,603,063.14. This represents a 4.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jason Kelly sold 45,682 shares of Ginkgo Bioworks stock in a transaction on Monday, October 19th. The shares were sold at an average price of $10.14, for a total transaction of $463,215.48. Following the sale, the insider directly owned 129,065 shares of the company's stock, valued at $1,308,719.10. This trade represents a 26.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 in the last three months. 12.69% of the stock is currently owned by insiders.

Institutional Trading of Ginkgo Bioworks

A number of institutional investors have recently bought and sold shares of DNA. Q Fund Management Hong Kong Ltd acquired a new stake in shares of Ginkgo Bioworks during the 3rd quarter valued at about $505,000. Integrated Wealth Concepts LLC acquired a new position in Ginkgo Bioworks in the second quarter worth approximately $50,000. Arizona State Retirement System acquired a new position in Ginkgo Bioworks in the second quarter worth approximately $102,000. AXQ Capital LP bought a new position in Ginkgo Bioworks during the second quarter valued at approximately $262,000. Finally, Balance Capital Partners L.P. bought a new position in Ginkgo Bioworks during the second quarter valued at approximately $1,972,179. Institutional investors and hedge funds own 78.63% of the company's stock.

Ginkgo Bioworks Company Profile

Ginkgo Bioworks is a biotechnology company that develops and engineers microorganisms and other cells for use in commercial products. Its platform combines biological research, automation, and software to help customers design, build, and test organisms with desired characteristics. The company provides cell-engineering services and capabilities to organizations in areas including pharmaceuticals, agriculture, food, and industrial chemicals. Its work can include developing and optimizing microbial strains and supporting the production of ingredients and other materials.

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