On September 5, 2023, Ginkgo Bioworks found itself in the midst of discussions and ratings from various research firms. Notably, William Blair downgraded the company’s rating from “outperform” to “market perform,” while The Goldman Sachs Group lowered their rating from “neutral” to “sell,” reducing the price objective for Ginkgo Bioworks from $3.00 to $1.25.
Bloomberg.com reports that the overall average rating for Ginkgo Bioworks stands at “Hold,” with an average price target of $3.75. This suggests that analysts have mixed opinions regarding the future prospects of the company.
Interestingly, recent insider trading activity has emerged within Ginkgo Bioworks. Insider Jason R. Kelly sold 100,000 shares on June 14th at an average price of $1.95 per share, amounting to a total transaction value of $195,000. Following this sale, Kelly now holds approximately 9,594,680 shares directly in the company.
Moreover, another executive insider named Reshma P. Shetty also participated in stock selling activities on June 7th by offloading 37,650 shares at an average price of $1.79 per share, totaling approximately $67,393.50 in proceeds. After this transaction, Shetty currently possesses around 13,428,754 shares directly in the firm.
These insider transactions were fully disclosed by both individuals as required by law through filings with the Securities & Exchange Commission (SEC). Interested parties can access these documents via the SEC website.
In addition to these larger insider transactions that have taken place recently, it is worth noting that insiders collectively sold a total of 1,324,611 shares over the past ninety days for a total value of $2,616,574. This means that insiders currently own approximately 15.05% percent of Ginkgo Bioworks’ stock.
As for the company’s stock performance, on September 5, 2023, shares of Ginkgo Bioworks opened at $2.25. The business has a 50-day moving average price of $2.00 and a 200-day moving average price of $1.63. With a market capitalization of $4.72 billion, the company boasts a P/E ratio of -3.17 and a beta of 1.17.
It is important to note that Ginkgo Bioworks has experienced fluctuations in its stock values over the past year, with a low of $1.12 and a high of $3.52 in the same period.
As investors and market observers await further updates from Ginkgo Bioworks, these recent events and ratings provide valuable insight into the company’s current situation and future prospects within the market landscape.
Ginkgo Bioworks Holdings, Inc.
DNA
Neutral
Updated on: 07/12/2023
Financial Health
Weak
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Sell
Ginkgo Bioworks Faces Downward Revision of Earnings Outlook as Insider Sales Raise Concerns
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is facing a downward revision of its earnings per share (EPS) estimates for the third quarter of 2023, according to equities researchers at Raymond James. The analysts have reduced their previous forecast from ($0.05) to ($0.06) per share. This news has raised questions about the company’s financial performance and prospects for the coming months.
Raymond James currently maintains an “Outperform” rating and a $3.50 target price for Ginkgo Bioworks’ stock. However, the consensus estimate among analysts for the company’s full-year earnings in 2023 remains low, with an EPS of ($0.34) per share.
Furthermore, Raymond James has also released estimates for Ginkgo Bioworks’ future earnings, including a projected EPS of ($0.07) for the fourth quarter of 2023 and ($0.33) for fiscal year 2023 as a whole. The estimates continue into 2024 and beyond, revealing a challenging path ahead for the company.
In other news related to Ginkgo Bioworks, insider Jason R. Kelly recently sold 100,000 shares of the firm’s stock on June 14th at an average price of $1.95 per share, amounting to a total value of $195,000. Following this transaction, Kelly now directly owns over 9 million shares valued at $18.7 million.
A filing with the Securities & Exchange Commission disclosed this transaction along with another sale by insider Reshma P. Shetty on June 7th when she sold 37,650 shares at an average price of $1.79 per share, totaling $67,393.50 in value.
These insider sales could be seen as concerning by some investors as they indicate a lack of confidence in the company’s future growth potential.
Looking back at Ginkgo Bioworks’ most recent earnings report, which was announced on August 9th, the company reported an EPS of ($0.09) for the quarter. This figure aligned with analysts’ consensus estimates but raised concerns given the negative net margin of 375.48% and negative return on equity of 66.58%.
Given the uncertainties surrounding Ginkgo Bioworks’ financial performance and its future prospects, it is not surprising to see changes in positions from institutional investors and hedge funds. Yousif Capital Management LLC recently acquired a new stake in the company, while Creative Planning and Silverlake Wealth Management LLC also made new investments.
Private Advisor Group LLC and Endurance Wealth ManagementInc. joined these institutional investors, showing some faith in Ginkgo Bioworks despite recent challenges.
In conclusion, Ginkgo Bioworks’ revised earnings outlook for Q3 2023 has raised eyebrows among analysts and investors alike. The downward revision suggests potential difficulties ahead for the company’s financial performance. With insider sales indicating uncertainty about future growth prospects and a challenging path forecasted for upcoming quarters, it remains to be seen how Ginkgo Bioworks will navigate these obstacles in the coming months.
Disclaimer: The information provided here is solely for informational purposes and should not be considered as investment advice or an endorsement of any particular security.
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