Ginkgo Bioworks (NYSE:DNA) Shares Down 11.8% After Insider Selling

Shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) fell 11.8% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $10.86 and last traded at $10.9460. 1,277,530 shares were traded during mid-day trading, a decline of 6% from the average session volume of 1,359,017 shares. The stock had previously closed at $12.41.

Specifically, insider Steven Coen sold 2,403 shares of the firm’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 sale, the insider owned 49,448 shares in the company, valued at approximately $741,720. This trade represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Analyst Upgrades and Downgrades

Several research firms have issued reports on DNA. TD Cowen lowered shares of Ginkgo Bioworks from a “buy” rating to a “hold” rating and decreased their price target for the stock from $12.00 to $9.00 in a research 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. Weiss Ratings reiterated a “sell (d-)” rating on shares of Ginkgo Bioworks in a research report on Friday, July 17th. Wall Street Zen upgraded Ginkgo Bioworks from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. Finally, Zacks Research upgraded Ginkgo Bioworks to a “hold” rating in a research note on Monday, August 17th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $6.33.

Ginkgo Bioworks News Roundup

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

• Positive Sentiment: NSF partnership expands strategic visibility: Ginkgo will provide in-kind access to its autonomous Boston laboratory, cloud-lab time and protein-testing services to researchers participating in the National Science Foundation’s X-Labs program. The decade-long initiative is backed by $1.5 billion and could showcase Ginkgo’s automation and biological-engineering platform to new researchers and potential customers, although the announcement does not specify immediate revenue. Ginkgo Bioworks to Provide Autonomous Lab Access to NSF X-Labs Researchers
• Positive Sentiment: Autonomous-lab capabilities strengthened: Ginkgo integrated Araceli Biosciences’ Endeavor high-content imaging system into its Nebula lab-in-the-loop platform. Faster, higher-volume cellular imaging could improve data generation and research productivity, potentially making Ginkgo’s services more attractive to biotech customers. Araceli Biosciences and Ginkgo Bioworks Bring Cellular Imaging at Scale to Nebula
• Neutral Sentiment: Institutional ownership remains substantial: Hedge funds and other institutions own about 78.6% of DNA, with several firms recently initiating or increasing positions. This may provide some shareholder support, though it does not change the company’s underlying operating performance.
• Negative Sentiment: Valuation and profitability concerns persist: An analysis argued that DNA’s valuation has risen faster than its business fundamentals. Ginkgo remains deeply unprofitable, with a negative net margin, and its latest revenue of $20.16 million fell short of the $24.05 million estimate. The stock is also trading well above the reported analyst consensus target of $6.33. Ginkgo Bioworks: The Valuation Has Outrun the Business
• Negative Sentiment: Insider selling adds a cautionary signal: Insider Steven Coen sold 2,403 shares for approximately $36,045, reducing his position by 4.63%. The transaction is relatively small, but insider selling can weigh on sentiment when the company is already facing valuation concerns. Insider Selling: Ginkgo Bioworks Insider Sells 2,403 Shares
• Negative Sentiment: Analyst sentiment remains bearish: Oppenheimer and BTIG Research cited $5 price targets, while TD Cowen downgraded DNA to Hold with a $9 target. The consensus rating was reported as Reduce.

Ginkgo Bioworks Stock Performance

The company has a 50-day moving average of $8.46 and a 200 day moving average of $8.33. The firm has a market cap of $765.99 million, a P/E ratio of -2.27 and a beta of 1.79.

Ginkgo Bioworks (NYSE:DNA) last announced 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 analysts’ expectations of $24.05 million. Sell-side analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.2 EPS for the current fiscal year.

Hedge Funds Weigh In On Ginkgo Bioworks

Several institutional investors have recently added to or reduced their stakes in the company. Balance Capital Partners L.P. acquired a new stake in shares of Ginkgo Bioworks during the second quarter worth approximately $1,972,179. Renaissance Technologies LLC acquired a new stake in Ginkgo Bioworks during the 1st quarter worth $616,000. Integrated Wealth Concepts LLC bought a new stake in shares of Ginkgo Bioworks during the 2nd quarter valued at $50,000. Arizona State Retirement System acquired a new position in shares of Ginkgo Bioworks in the 2nd quarter valued at $102,000. Finally, AXQ Capital LP bought a new position in shares of Ginkgo Bioworks in the 2nd quarter worth $262,000. 78.63% of the stock is owned by 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.