Ginkgo Bioworks executive sells over $7,000 in stock

In a recent transaction, Mark E. Dmytruk, the Chief Financial Officer of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA ), sold 1,148 shares of the company's Class A Common Stock. The sale, which took place on September 12, 2024, was executed at an average price of $6.172 per share, resulting in a total value of $7,085.


This transaction was disclosed in a filing with the Securities and Exchange Commission. According to the document, the shares were sold to cover tax withholding obligations connected with the vesting of restricted stock and/or restricted stock units. Such sales, which are part of the company's equity incentive plans, do not represent discretionary trades by the reporting person.


Ginkgo Bioworks, a company operating in the biological products industry, is known for its role in organism engineering. The company's stock, traded under the ticker DNA, is subject to the close attention of investors who track insider transactions as indicators of confidence in the company's future performance.


While the sale of shares may capture the spotlight, it is worth noting that Dmytruk also engaged in transactions that did not result in a change to his direct ownership of shares. These transactions, which occurred on September 11, involved the conversion of restricted stock units into shares of Class A and Class B Common Stock. However, the filings indicate that these were non-monetary transactions, and as such, no total dollar value was assigned to them.


Investors and market watchers often scrutinize the actions of company executives for insights into their perspective on the business's health and trajectory. The recent transactions by Dmytruk provide a glimpse into the financial moves of one of Ginkgo Bioworks' key figures at a time when the company continues to navigate the competitive landscape of the biotech industry.



In other recent news, Ginkgo Bioworks has seen significant developments. The company has been notified by the New York Stock Exchange (NYSE) of the delisting of its public warrants due to "abnormally low" trading price levels. This does not affect the firm's Class A common stock, which continues to be traded on the NYSE. Ginkgo Bioworks has also regained compliance with the NYSE's minimum price criteria and implemented a 1-for-40 reverse stock split. Both BTIG and Goldman Sachs have recognized this change, setting a new price target of $7.00 and maintaining a Sell rating on the company.


The company's revenue and earnings forecasts remain steady, with projected revenues of $187.0 million, $189.7 million, and $201.7 million for the years 2024, 2025, and 2026, respectively. Despite a 20% decrease in cell engineering revenue, Ginkgo Bioworks continues to expect cell engineering revenue between $120 million to $140 million for the full year.


In addition, Ginkgo Bioworks has made significant amendments to its corporate charter, including officer exculpation provisions and is implementing cost reduction strategies, expecting over $85 million in annualized savings. These recent developments highlight the company's strategic adjustments and financial outlook.
InvestingPro Insights


The recent insider transactions at Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) coincide with a period of notable financial metrics for the company. As of the last twelve months leading into Q2 2024, Ginkgo Bioworks holds a market capitalization of approximately $345.4 million. Despite a challenging year reflected in the company's stock performance, an InvestingPro Tip suggests that the stock is currently in oversold territory, which could be of interest to investors looking for potential entry points.


On the operational front, the company's gross profit margin remains strong at 80.22%, indicating effective control over the cost of goods sold relative to revenue. However, it's important for investors to consider that analysts anticipate a sales decline in the current year, which aligns with a revenue decrease of 43.45% over the last twelve months leading into Q2 2024. This could be a point of concern for those evaluating the company's growth trajectory.


Another InvestingPro Tip highlights that Ginkgo Bioworks is trading at a low revenue valuation multiple. This metric, coupled with the fact that the company's liquid assets exceed short-term obligations, might offer some reassurance to investors about the company's ability to manage its immediate financial obligations despite the anticipated sales decline.


For those interested in a more in-depth analysis, InvestingPro provides additional tips for Ginkgo Bioworks, which can be found at https://www.investing.com/pro/DNA. These insights could further assist investors in making informed decisions regarding their investment in the company.

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Source: Investing.com