An executive at Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) has recently engaged in transactions involving the company's stock, according to a new SEC filing. Mark E. Dmytruk, the company's Chief Financial Officer, sold a total of 63,567 shares of Class A Common Stock on August 2, 2024, for an average price of $0.287 per share, resulting in a total sale amount of over $18,243.
The transactions occurred in the midst of Dmytruk's other activities related to the company's stock, which included acquiring shares through the execution of restricted stock units (RSUs). These RSUs represent a contingent right to receive shares of Ginkgo Bioworks' Class A Common Stock. The RSUs were reported to vest in 48 equal monthly installments, beginning either on April 1, 2023, or April 1, 2024, depending on the specific grant.
It is worth noting that the sales conducted by Dmytruk were reportedly for the purpose of covering tax withholding obligations connected to the vesting of restricted stock and/or restricted stock units. This is a common practice among executives, where part of the stock acquired through compensation plans is sold to cover the taxes due upon vesting.
After these transactions, Dmytruk's ownership in Ginkgo Bioworks Holdings, Inc. stands at a significant number of shares, reflecting his continued stake in the company.
For investors, the movements of company insiders such as executives and officers can provide insights into their perspective on the firm's prospects. However, it is also important to consider that these transactions can be influenced by a variety of personal financial needs and strategies, and not necessarily just their outlook on the company's future performance.
Ginkgo Bioworks Holdings, Inc. is a biotech company based in Boston, Massachusetts, specializing in the design and development of organisms for a variety of applications, including pharmaceuticals, agriculture, and environmental management.
In other recent news, Ginkgo Bioworks has been the subject of significant developments. The company has announced a partnership with Syngenta Crop Protection, aiming to expedite the development and commercialization of a new agricultural biological solution. This collaboration will leverage Ginkgo's expertise in microbial strain development and machine learning to meet Syngenta's productivity targets.
In other developments, Ginkgo Bioworks has faced a series of analyst downgrades. BTIG has reduced the company's stock target and maintained a sell rating, citing challenges in forecasting revenue growth from new cell program additions. Similarly, William Blair downgraded Ginkgo's stock from Market Perform to Underperform, highlighting concerns over the company's quarter performance and shift in business strategy.
Furthermore, Ginkgo Bioworks has received a noncompliance notice from the New York Stock Exchange due to the average closing price of its common stock falling below $1 over a consecutive 30 trading-day period. The company is actively exploring options to address this issue and comply with the exchange's listing standards.
Finally, Ginkgo Bioworks has announced plans to reduce its workforce by at least 35% across general and administrative and research and development functions, affecting approximately 400-500 full-time employees. The company is also planning to reduce its physical footprint by up to 60% to streamline operations and reduce costs. These are the latest developments in Ginkgo Bioworks' recent journey.
InvestingPro Insights
Recent market data from InvestingPro shows that Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is navigating through challenging financial waters. The company's market capitalization stands at $646.24 million, which reflects the broader market's current valuation of the firm. Notably, Ginkgo Bioworks has a negative P/E ratio of -0.66, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.97, indicating that the company is not currently profitable.
One of the key InvestingPro Tips for Ginkgo Bioworks is its high gross profit margin, which was at 80.43% for the last twelve months as of Q1 2024. This suggests that while the company is facing challenges, it is still able to maintain a high percentage of revenue after accounting for the cost of goods sold. However, it's important to note that analysts anticipate a sales decline in the current year, which could impact future profitability.
Another point of consideration for investors is that Ginkgo Bioworks holds more cash than debt on its balance sheet, providing the company with a buffer to manage its financial obligations. This is a crucial factor, especially as the company is quickly burning through cash and has been identified as trading at a low revenue valuation multiple. Additionally, the firm's stock price has experienced a significant decline over the past year, with a one-year price total return as of the date provided at -85.11%.
For investors looking for more in-depth analysis and additional insights, there are 14 more InvestingPro Tips available for Ginkgo Bioworks on the InvestingPro platform (https://www.investing.com/pro/DNA). These tips could provide further guidance on the company's financial health and stock performance.
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