Ginkgo Bioworks executive sells over $1,900 in stock

An executive at Ginkgo Bioworks Holdings, Inc. (NYSE:), a leading organism company, has recently engaged in stock transactions, according to the latest SEC filings. Steven P. Coen, the company’s Chief Accounting Officer, sold a total of 316 shares of Class A Common Stock on September 12, 2024, for a price of $6.172 per share, resulting in a total transaction value of approximately $1,950.

The sale was part of a “sell to cover” transaction, a common practice wherein executives sell a portion of their stock to cover tax withholding obligations associated with the vesting of restricted stock and/or restricted stock units. This type of sale is not considered a discretionary trade by the reporting person, as it is often required by the company’s equity incentive plans.

The SEC filing also indicated that Coen had acquired shares through the exercise of options, known as restricted stock units (RSUs). However, these transactions did not involve a direct purchase at a specific price, and therefore, there was no reported total transaction value associated with these acquisitions.

Investors may note that the shares owned by Coen following these transactions have been adjusted to reflect a 1-for-40 reverse stock split that Ginkgo Bioworks effected on August 20, 2024. The RSUs mentioned in the report are set to vest over a period, with a portion having vested on May 1, 2024, and the remainder to vest in equal monthly installments thereafter.

Ginkgo Bioworks, headquartered in Boston, Massachusetts, specializes in designing custom microbes for customers across multiple markets, including nutrition, health, and consumer goods. The company’s stock is publicly traded on the New York Stock Exchange under the ticker symbol DNA.

The SEC filing provides a snapshot of the executive’s stock transactions and holdings as of the reporting date, offering transparency to investors and the market regarding insider activities at Ginkgo Bioworks.

In other recent news, Ginkgo Bioworks Holdings, Inc. has been making notable strides. The company has regained compliance with the New York Stock Exchange (NYSE) listing standards, following a period of non-compliance. However, the NYSE has delisted the company’s public warrants due to low trading prices. Ginkgo Bioworks also implemented a 1-for-40 reverse stock split, a move reflected in adjusted stock targets by analysts at BTIG and Goldman Sachs, who have set a new price target of $7.00, maintaining a Sell rating on the company.

The company has reported 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 to $36 million, Ginkgo Bioworks continues to expect cell engineering revenue between $120 million to $140 million for the full year.

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

InvestingPro Insights

As investors digest the recent stock transactions by Ginkgo Bioworks Holdings, Inc. executive Steven P. Coen, it’s important to consider the broader financial context of the company. According to InvestingPro data, Ginkgo Bioworks boasts a market capitalization of $345.4 million, which is reflective of investor valuation of the company. Despite the challenges, the company maintains a strong gross profit margin of 80.22% for the last twelve months as of Q2 2024, showcasing its ability to retain a significant portion of revenue after accounting for the cost of goods sold.

InvestingPro Tips suggest a mixed financial picture. On one hand, Ginkgo Bioworks is trading at a low revenue valuation multiple, which could indicate that the stock is undervalued relative to its revenue. This is further supported by the company holding more cash than debt on its balance sheet, providing financial stability. On the other hand, analysts anticipate a decline in sales in the current year and do not expect the company to be profitable this year. Additionally, the stock’s price has experienced a significant drop over the last year, with a 91.81% decline in its total return.

For investors considering Ginkgo Bioworks, these insights from InvestingPro could be crucial. While the company has a solid gross profit margin and cash position, the expected sales decline and lack of profitability in the near term may raise concerns. Interested parties can find additional InvestingPro Tips for Ginkgo Bioworks at InvestingPro, where there are 17 total tips available that can help investors make a more informed decision.