Ginkgo Bioworks (NYSE:DNA) Stock Falls 11.8% Following Insider Selling

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s stock price was down 11.8% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $10.86 and last traded at $10.9460. 1,277,530 shares traded hands during trading, a decline of 6% from the average daily volume of 1,359,017 shares. The stock had previously closed at $12.41.

Specifically, insider Steven Coen sold 2,403 shares of Ginkgo Bioworks stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $15.00, for a total value of $36,045.00. Following the transaction, the insider directly owned 49,448 shares of the company’s stock, valued at $741,720. The trade was a 4.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on DNA. Wall Street Zen raised shares of Ginkgo Bioworks from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Ginkgo Bioworks in a research note on Friday, July 17th. 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. Oppenheimer set a $5.00 target price on shares of Ginkgo Bioworks in a research note on Wednesday, September 9th. Finally, Zacks Research upgraded Ginkgo Bioworks to a “hold” rating in a report on Monday, August 17th. Two investment 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, the company has an average rating of “Reduce” and a consensus target price of $6.33.

More Ginkgo Bioworks News

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 stock’s fifty day moving average is $8.46 and its two-hundred day moving average is $8.33. The firm has a market capitalization of $765.99 million, a price-to-earnings ratio of -2.27 and a beta of 1.79.

Ginkgo Bioworks (NYSE:DNA) last announced its earnings results on Wednesday, August 5th. The company reported ($0.75) earnings per share (EPS) for the quarter, topping 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 analyst estimates of $24.05 million. Sell-side analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.2 earnings per share for the current year.

Hedge Funds Weigh In On Ginkgo Bioworks

Several institutional investors have recently modified their holdings of DNA. Strategic Advocates LLC boosted its stake in Ginkgo Bioworks by 808.9% during the 4th quarter. Strategic Advocates LLC now owns 4,381 shares of the company’s stock valued at $36,000 after purchasing an additional 3,899 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Ginkgo Bioworks in the 2nd quarter worth $50,000. Entropy Technologies LP acquired a new stake in shares of Ginkgo Bioworks in the first quarter valued at $67,000. Boston Standard Wealth Management LLC acquired a new stake in shares of Ginkgo Bioworks in the first quarter valued at $97,000. Finally, Arizona State Retirement System bought a new position in Ginkgo Bioworks during the second quarter valued at about $102,000. Institutional investors own 78.63% of the company’s stock.

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.