Ginkgo Bioworks (NYSE:DNA) Stock Price Down 11.8% - Here's What Happened

Key Points

• Ginkgo Bioworks shares fell 11.8% to about $10.95, with trading volume slightly below its average. The company has a market capitalization of approximately $782.8 million.
• Analyst sentiment remains cautious: the stock carries a consensus “Reduce” rating and an average price target of $6.33. TD Cowen cut its target from $12 to $9, while Oppenheimer set a $5 target.
• Ginkgo’s latest quarter showed a smaller-than-expected loss of $0.75 per share, but revenue of $20.16 million missed estimates and the company reported deeply negative margins and return on equity. An insider also sold 5,000 shares, while institutional investors own 78.63% of the stock.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report) shares fell 11.8% during trading on Wednesday. The stock traded as low as $10.86 and last traded at $10.9460. 1,277,530 shares changed hands during trading, a decline of 6% from the average daily volume of 1,359,017 shares. The stock had previously closed at $12.41.

Analysts Set New Price Targets

Several research analysts have commented on DNA shares. Oppenheimer set a $5.00 price target on shares of Ginkgo Bioworks in a report on Wednesday, September 9th. Wall Street Zen upgraded Ginkgo Bioworks from a "sell" rating to a "hold" rating in a research note on Saturday, September 26th. Zacks Research upgraded shares of Ginkgo Bioworks to a "hold" rating in a research report on Monday, August 17th. Weiss Ratings restated a "sell (d-)" rating on shares of Ginkgo Bioworks in a research note on Friday, July 17th. Finally, TD Cowen downgraded shares of Ginkgo Bioworks from a "buy" rating to a "hold" rating and decreased their target price for the stock from $12.00 to $9.00 in a research note on Friday, August 7th. Two investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $6.33.

Ginkgo Bioworks Stock Performance

The company has a market cap of $782.76 million, a price-to-earnings ratio of -2.32 and a beta of 1.79. The company has a 50-day simple moving average of $8.32 and a 200-day simple moving average of $8.27.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.75) earnings per share 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 firm had revenue of $20.16 million for the quarter, compared to the consensus estimate of $24.05 million. As a group, equities research analysts forecast that Ginkgo Bioworks Holdings, Inc. will post -3.2 EPS for the current year.

Insider Activity

In related 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 value of $35,400.00. Following the completion of the sale, the director owned 19,310 shares in the company, valued at $136,714.80. This trade represents a 20.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 12.69% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Strategic Advocates LLC grew its holdings in shares of Ginkgo Bioworks by 808.9% in the 4th quarter. Strategic Advocates LLC now owns 4,381 shares of the company's stock worth $36,000 after acquiring an additional 3,899 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in Ginkgo Bioworks during the second quarter worth $50,000. Arizona State Retirement System acquired a new stake in Ginkgo Bioworks in the second quarter valued at $102,000. Entropy Technologies LP purchased a new position in shares of Ginkgo Bioworks in the first quarter valued at $67,000. Finally, Boston Standard Wealth Management LLC purchased a new position in shares of Ginkgo Bioworks in the first quarter valued at $97,000. 78.63% of the stock is owned by hedge funds and other institutional investors.

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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