Ginkgo Bioworks (NYSE:DNA) Stock Price Down 7.5% - Should You Sell?

Key Points

• Ginkgo Bioworks shares fell 7.5% to about $10.87 in Friday trading, with volume 78% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has an average rating of “Reduce” and a consensus price target of $7.00, below its recent trading price.
• The company remains financially challenged, reporting a quarterly loss of $0.75 per share, $20.16 million in revenue versus $24.05 million expected, and deeply negative net margins; insiders have also sold shares in the past 90 days.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report)'s share price fell 7.5% during trading on Friday. The stock traded as low as $10.96 and last traded at $10.8740. 311,020 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 1,425,167 shares. The stock had previously closed at $11.76.

Wall Street Analyst Weigh In

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

Ginkgo Bioworks Stock Performance

The firm has a market capitalization of $690.10 million, a price-to-earnings ratio of -2.05 and a beta of 1.79. The business has a fifty day moving average price of $8.77 and a 200 day moving average price of $8.51.

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, 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 analysts' expectations of $24.05 million. On average, analysts expect that Ginkgo Bioworks Holdings, Inc. will post -3.20 earnings per share for the current year.

Insider Buying and Selling

In other Ginkgo Bioworks news, insider Steven P. Coen sold 2,403 shares of the business's stock in a transaction on Monday, October 5th. The shares were sold at an average price of $15.00, for a total value of $36,045.00. Following the transaction, the insider owned 49,448 shares in the company, valued at $741,720. The trade was a 4.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Christian O. Henry sold 5,000 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $7.08, for a total value of $35,400.00. Following the completion of the transaction, the director owned 19,310 shares in the company, valued at approximately $136,714.80. This trade represents a 20.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 7,733 shares of company stock valued at $73,748. 12.69% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Q Fund Management Hong Kong Ltd acquired a new position in Ginkgo Bioworks in the third quarter worth about $505,000. Integrated Wealth Concepts LLC bought a new position in Ginkgo Bioworks in the second quarter worth about $50,000. Arizona State Retirement System bought a new position in Ginkgo Bioworks in the second quarter worth about $102,000. AXQ Capital LP bought a new position in Ginkgo Bioworks in the second quarter worth about $262,000. Finally, Balance Capital Partners L.P. acquired a new position in Ginkgo Bioworks in the second quarter valued at approximately $1,972,179. 78.63% of the stock is currently owned by institutional investors.

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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