Ginkgo Bioworks (NYSE:DNA) Stock Price Up 10.4% - What's Next?

Key Points

• Ginkgo Bioworks shares rose 10.4% to about $11.07 in Tuesday trading, with volume below the stock’s average daily level.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $7.00 average price target, despite TD Cowen raising its target to $11.00.
• The company remains unprofitable, reporting a quarterly loss of $0.75 per share and $20.16 million in revenue, while insiders sold 136,525 shares worth roughly $1.38 million over the past three months.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report)'s share price was up 10.4% during trading on Tuesday. The company traded as high as $11.03 and last traded at $11.0660. Approximately 1,254,926 shares were traded during mid-day trading, a decline of 14% from the average daily volume of 1,452,420 shares. The stock had previously closed at $10.02.

Analysts Set New Price Targets

Several brokerages have issued reports on DNA. Zacks Research raised shares of Ginkgo Bioworks to a "hold" rating in a report on Monday, August 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ginkgo Bioworks in a report on Thursday, October 15th. BTIG Research reissued a "sell" rating and issued a $5.00 price objective on shares of Ginkgo Bioworks in a research report on Friday, September 4th. Wall Street Zen upgraded Ginkgo Bioworks from a "sell" rating to a "hold" rating in a report on Saturday, September 26th. Finally, TD Cowen boosted their price target on Ginkgo Bioworks from $9.00 to $11.00 and gave the stock a "hold" rating in a research report on Tuesday, October 13th. Two 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, Ginkgo Bioworks currently has an average rating of "Reduce" and an average target price of $7.00.

Ginkgo Bioworks Stock Performance

The firm has a market capitalization of $754.41 million, a PE ratio of -2.22 and a beta of 1.79. The business's 50 day moving average price is $9.14 and its 200-day moving average price is $8.53.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.75) EPS for the quarter, topping analysts' consensus estimates of ($0.90) by $0.15. The business had revenue of $20.16 million during the quarter, compared to the consensus estimate of $24.05 million. Ginkgo Bioworks had a negative return on equity of 60.27% and a negative net margin of 259.96%. As a group, analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.20 earnings per share for the current year.

Insider Activity

In other news, insider Reshma Shetty sold 22,369 shares of the firm's stock in a transaction on Monday, October 19th. The stock was sold at an average price of $10.14, for a total transaction of $226,821.66. Following the sale, the insider owned 453,951 shares in the company, valued at $4,603,063.14. This trade represents a 4.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 the stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $10.14, for a total value of $463,215.48. Following the completion of the sale, the insider owned 129,065 shares of the company's stock, valued at approximately $1,308,719.10. This trade represents a 26.14% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 136,525 shares of company stock worth $1,379,699. 12.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ginkgo Bioworks

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DNA. Bank of New York Mellon Corp grew its position in Ginkgo Bioworks by 1.8% in the first quarter. Bank of New York Mellon Corp now owns 123,959 shares of the company's stock valued at $760,000 after acquiring an additional 2,178 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Ginkgo Bioworks in the second quarter valued at $50,000. Arizona State Retirement System bought a new position in Ginkgo Bioworks during the second quarter valued at approximately $102,000. Entropy Technologies LP acquired a new position in Ginkgo Bioworks during the 1st quarter worth $67,000. Finally, Dimensional Fund Advisors LP raised its stake in shares of Ginkgo Bioworks by 23.8% in the first quarter. Dimensional Fund Advisors LP now owns 127,048 shares of the company's stock valued at $779,000 after purchasing an additional 24,434 shares in the last quarter. Institutional investors own 78.63% of the company's stock.

Ginkgo Bioworks Company Profile

Ginkgo Bioworks is a biotechnology company that develops and deploys biological systems for commercial and industrial applications. Its platform is designed to help customers program cells to produce a wide range of products, including pharmaceuticals, food ingredients, agricultural inputs, specialty chemicals and materials. The company combines biological engineering, automation, software and data science to design, build and test engineered organisms.

Ginkgo provides services through its cell-programming platform and biological engineering foundry, supporting activities such as genetic design, strain construction, laboratory testing and process development.

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