Last Updated: 15 Sep 2024
Executive Summary
Ginkgo Bioworks Holdings (DNA) is a biotechnology company that develops and manufactures cell engineering products. The company's platform enables the design, construction, and testing of engineered cells for a wide range of applications, including pharmaceuticals, industrial enzymes, and agricultural products. DNA has a strong balance sheet with $1.2 billion in cash and equivalents as of June 30, 2024. However, the company is still unprofitable and faces significant competition in the biotechnology industry. The stock is currently trading at $6.32, below its 52-week high of $82.80.
Company Overview
Ginkgo Bioworks was founded in 2009 and is headquartered in Boston, Massachusetts. The company's mission is to "make biology easier to engineer." DNA's platform enables the design, construction, and testing of engineered cells for a wide range of applications. The company's customers include pharmaceutical companies, industrial enzyme manufacturers, and agricultural companies.
Fundamental Analysis
DNA is still unprofitable, but the company is making progress towards profitability. In the first half of 2024, DNA reported revenue of $184.3 million, up 30.2% year-over-year. The company's gross profit margin was 14.8%, up from 12.5% in the first half of 2023. DNA's net loss was $633.7 million in the first half of 2024, compared to a net loss of $488.2 million in the first half of 2023.
DNA has a strong balance sheet with $1.2 billion in cash and equivalents as of June 30, 2024. The company's long-term debt is $1.1 billion.
Technical Analysis
DNA's stock price has been in a downtrend since reaching a 52-week high of $82.80 in January 2023. The stock is currently trading at $6.32, below its 50-day and 200-day moving averages. The relative strength index (RSI) is 30.7, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for DNA is uncertain. The stock is currently trading below its 50-day and 200-day moving averages, and the RSI is oversold. This indicates that the stock could continue to decline in the short term. However, DNA has a strong balance sheet and is making progress towards profitability. This could support the stock price in the long term.
Long Term Outlook
The long-term outlook for DNA is positive. The company's platform has the potential to revolutionize a wide range of industries. DNA has a strong balance sheet and is making progress towards profitability. This could support the stock price in the long term.
Analyst Recommendations
Analysts are divided on DNA. One analyst has a buy rating on the stock, one has a hold rating, and two have sell ratings. The average analyst price target is $36.80.
