Ginkgo Bioworks (NYSE:DNA) Trading Up 9.4% - Here's Why

Key Points

• Ginkgo Bioworks shares rose 9.4% to about $9.38 in Thursday’s trading, despite volume running 84% below the average session level.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating and a $6.33 target price, well below its trading price, with multiple firms maintaining “Sell” ratings.
• The company continues to report significant losses, including a negative 259.96% net margin and expected full-year EPS of -$3.20. A director also recently sold 5,000 shares, while institutional investors own 78.63% of the stock.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA - Get Free Report)'s stock price shot up 9.4% during mid-day trading on Thursday . The stock traded as high as $9.09 and last traded at $9.3840. 185,929 shares traded hands during trading, a decline of 84% from the average session volume of 1,186,359 shares. The stock had previously closed at $8.58.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Ginkgo Bioworks in a research note on Friday, July 17th. Wall Street Zen lowered Ginkgo Bioworks from a "hold" rating to a "sell" rating in a research note on Saturday, September 5th. Oppenheimer set a $5.00 price objective on Ginkgo Bioworks in a research report on Wednesday, September 9th. BTIG Research reissued a "sell" rating and set a $5.00 price objective on shares of Ginkgo Bioworks in a report on Friday, September 4th. Finally, Zacks Research raised Ginkgo Bioworks to a "hold" rating in a report on Monday, August 17th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $6.33.

Ginkgo Bioworks Stock Performance

The company has a 50-day moving average of $7.55 and a 200-day moving average of $7.92. The firm has a market capitalization of $614.81 million, a price-to-earnings ratio of -1.82 and a beta of 1.76.

Ginkgo Bioworks (NYSE:DNA - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.75) EPS for the quarter, topping the consensus estimate of ($0.90) by $0.15. Ginkgo Bioworks had a negative net margin of 259.96% and a negative return on equity of 60.27%. The firm had revenue of $20.16 million for the quarter, compared to the consensus estimate of $24.05 million. As a group, analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.2 EPS for the current fiscal year.

Insider Transactions at Ginkgo Bioworks

In other Ginkgo Bioworks news, Director Christian Henry sold 5,000 shares of the 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 completion of the transaction, the director owned 19,310 shares in the company, valued at approximately $136,714.80. This represents a 20.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.69% of the company's stock.

Institutional Trading of Ginkgo Bioworks

A number of institutional investors have recently modified their holdings of DNA. Balance Capital Partners L.P. bought a new position in shares of Ginkgo Bioworks during the second quarter worth about $1,972,179. Renaissance Technologies LLC bought a new stake in Ginkgo Bioworks in the 1st quarter valued at approximately $616,000. Northwestern Mutual Wealth Management Co. lifted its stake in Ginkgo Bioworks by 28,457.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 228,744 shares of the company's stock valued at $1,901,000 after acquiring an additional 227,943 shares in the last quarter. Boston Standard Wealth Management LLC acquired a new position in Ginkgo Bioworks during the 1st quarter worth approximately $97,000. Finally, Bank of New York Mellon Corp grew its stake in shares of Ginkgo Bioworks by 1.8% during the 1st quarter. Bank of New York Mellon Corp now owns 123,959 shares of the company's stock worth $760,000 after acquiring an additional 2,178 shares in 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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