Ginkgo Bioworks (NYSE:DNA) Shares Up 10.4% – Still a Buy?

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

Key Stories Impacting Ginkgo Bioworks

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

Analyst Ratings Changes

DNA has been the topic of several analyst reports. BTIG Research reaffirmed a “sell” rating and issued a $5.00 target price on shares of Ginkgo Bioworks in a research note on Friday, September 4th. Oppenheimer set a $5.00 price target on shares of Ginkgo Bioworks in a research report on Wednesday, September 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Ginkgo Bioworks in a research report on Friday, July 17th. Zacks Research raised shares of Ginkgo Bioworks to a “hold” rating in a report on Monday, August 17th. Finally, Wall Street Zen cut shares of Ginkgo Bioworks from a “hold” rating to a “sell” rating in a research report on Saturday, September 5th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Ginkgo Bioworks currently has an average rating of “Reduce” and a consensus target price of $6.33.

Ginkgo Bioworks Price Performance

The stock has a market capitalization of $523.50 million, a PE ratio of -1.55 and a beta of 1.76. The company has a 50 day moving average price of $7.63 and a 200-day moving average price of $7.87.

Ginkgo Bioworks (NYSE:DNA) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.75) EPS for the quarter, topping analysts’ consensus estimates of ($0.90) by $0.15. The company had revenue of $20.16 million during the quarter, compared to analyst estimates 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, equities analysts anticipate that Ginkgo Bioworks Holdings, Inc. will post -3.2 earnings per share for the current year.

Insider Activity at Ginkgo Bioworks

In other news, Director Christian Henry sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $7.08, for a total value of $35,400.00. Following the completion of the sale, 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 transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 12.69% of the company’s stock.

Hedge Funds Weigh In On Ginkgo Bioworks

A number of institutional investors have recently bought and sold shares of DNA. Strategic Advocates LLC boosted its position 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 acquiring an additional 3,899 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Ginkgo Bioworks in the 2nd quarter worth approximately $50,000. Entropy Technologies LP purchased a new position in shares of Ginkgo Bioworks in the 1st quarter valued at approximately $67,000. Boston Standard Wealth Management LLC purchased a new position in shares of Ginkgo Bioworks in the 1st quarter valued at approximately $97,000. Finally, AXQ Capital LP purchased a new position in shares of Ginkgo Bioworks in the 4th quarter valued at approximately $100,000. 78.63% of the stock is owned by institutional investors.

About Ginkgo Bioworks

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.