Ginkgo Bioworks (NYSE:DNA) Trading Up 10.4% - Still a Buy?

Key Points

• Shares jumped 10.4% after Ginkgo Datapoints announced a partnership with Eli Lilly’s TuneLab AI/ML drug-discovery network, potentially strengthening demand for Ginkgo’s data and cell-programming services.
• Analyst sentiment remains cautious: Ginkgo has a consensus “Reduce” rating, with MarketBeat’s average price target at $6.33 and several firms maintaining “Sell” ratings or cutting targets.
• The company remains financially weak, reporting a $0.75 quarterly loss per share, revenue below expectations, and deeply negative margins; insider selling by a director also adds a negative sentiment signal.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report)'s share price traded up 10.4% on Thursday . The company traded as high as $7.78 and last traded at $7.7920. 408,235 shares were traded during trading, a decline of 65% from the average daily volume of 1,157,005 shares. The stock had previously closed at $7.06.

Ginkgo Bioworks News Summary

Here are the key news stories impacting Ginkgo Bioworks this week:

• Positive Sentiment: Partnership with Eli Lilly: Ginkgo Datapoints will provide discovery-data generation services, including small-molecule data, to Lilly’s TuneLab AI/ML drug-discovery network. The agreement strengthens Ginkgo’s commercial relationship with a major pharmaceutical company and could support future demand for its data and cell-programming capabilities. Ginkgo Datapoints Announces Partnership with TuneLab to Close the Gap between AI Models and Lab Data
• Neutral Sentiment: Relative market strength: DNA recently closed at $7.06 while the broader market was under pressure, suggesting some investor interest in the Lilly TuneLab announcement. However, the stock remains below its 50-day and 200-day moving averages, indicating that its longer-term trend is still weak. Ginkgo Bioworks Rises as Market Takes a Dip
• Negative Sentiment: Director sale: Director Christian Henry sold 5,000 shares for approximately $35,400, reducing his direct ownership by 20.57% to 19,310 shares. While the transaction is relatively small, insider selling can weigh on sentiment because it signals that an executive is monetizing part of their position. Ginkgo Bioworks Director Sells 5,000 Shares
• Negative Sentiment: Lower valuation expectations: The consensus price target was cut 22.22% to $7.14, leaving limited implied upside from recent trading levels. Broader analyst sentiment remains cautious, with a consensus “Reduce” rating, while recent earnings showed a sizable loss and revenue below expectations. Ginkgo Bioworks Consensus Price Target Cut

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. TD Cowen downgraded shares of Ginkgo Bioworks from a "buy" rating to a "hold" rating and cut their price target for the company from $12.00 to $9.00 in a report on Friday, August 7th. BTIG Research reaffirmed a "sell" rating and issued a $5.00 price target on shares of Ginkgo Bioworks in a report on Friday, September 4th. Oppenheimer set a $5.00 price objective on Ginkgo Bioworks in a research report on Wednesday, September 9th. Wall Street Zen lowered Ginkgo Bioworks from a "hold" rating to a "sell" rating in a research note on Saturday, September 5th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Ginkgo Bioworks in a research report on Friday, July 17th. Two research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Ginkgo Bioworks presently has a consensus rating of "Reduce" and a consensus target price of $6.33.

Ginkgo Bioworks Trading Up 10.1%

The company has a market capitalization of $523.50 million, a P/E ratio of -1.55 and a beta of 1.76. The business's fifty day moving average price is $7.63 and its 200-day moving average price is $7.87.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.75) EPS 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 business had revenue of $20.16 million for the quarter, compared to analysts' expectations 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 at Ginkgo Bioworks

In related news, Director Christian Henry sold 5,000 shares of the firm's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $7.08, for a total transaction of $35,400.00. Following the transaction, the director directly owned 19,310 shares of the company's stock, valued at approximately $136,714.80. This trade represents a 20.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 12.69% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DNA. Prescott Group Capital Management L.L.C. bought a new stake in shares of Ginkgo Bioworks in the 4th quarter worth approximately $4,503,000. UBS Group AG raised its position in Ginkgo Bioworks by 86.4% in the 4th quarter. UBS Group AG now owns 489,418 shares of the company's stock worth $4,067,000 after purchasing an additional 226,861 shares during the period. Balance Capital Partners L.P. purchased a new position in Ginkgo Bioworks in the 2nd quarter worth $1,972,179. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Ginkgo Bioworks by 28,457.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 228,744 shares of the company's stock worth $1,901,000 after buying an additional 227,943 shares during the period. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Ginkgo Bioworks by 23.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 127,048 shares of the company's stock valued at $779,000 after acquiring an additional 24,434 shares during the last quarter. 78.63% of the stock is currently owned by institutional investors.

Ginkgo Bioworks Company Profile

Ginkgo Bioworks is a biotechnology company that develops and operates a platform for programming cells. Its technology combines biological engineering, automation, software and data science to help customers design, build and test microorganisms and other biological systems for commercial applications.

The company provides cell-programming services and related tools to customers in areas including pharmaceuticals, agriculture, food and ingredients, industrial chemicals, materials and consumer products.

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