BOSTON - Ginkgo Bioworks Holdings, Inc. (NYSE: NYSE:DNA), a company specializing in cell programming and biosecurity, has returned to compliance with New York Stock Exchange (NYSE) listing standards. The company received notification on September 3, 2024, that its Class A common stock's closing bid price and 30-day trading average had both sustained above the $1.00 minimum requirement. This development follows a period of non-compliance that led to a 1-for-40 reverse stock split on August 20, 2024.
The NYSE's compliance standard, outlined in Section 802.01C of its Listed Company Manual, requires listed stocks to maintain a minimum average closing price of $1.00 per share over a consecutive 30 trading-day period. Ginkgo's successful rebound from its prior deficiency was first signaled when its stock closed the last day of August above this threshold.
Simultaneously, Ginkgo was informed by the NYSE of the initiation of procedures to delist the company's public warrants, which were issued during Soaring Eagle Acquisition Corp's initial public offering. The suspension of these warrants from trading is effective immediately due to their "abnormally low" trading price levels, as per Section 802.01D of the NYSE Listed Company Manual. However, trading of Ginkgo's Class A common stock remains unaffected and will continue on the NYSE under the ticker "DNA".
Ginkgo Bioworks operates as a leading horizontal platform for cell programming, offering services across various markets including food, agriculture, pharmaceuticals, and industrial chemicals. The company's biosecurity division aims to provide infrastructure and technologies to address biological threats globally.
This announcement is based on a press release statement and contains forward-looking statements about Ginkgo's ability to maintain NYSE compliance and other aspects of its operations. These statements are subject to risks and uncertainties that could affect actual future events and are not guarantees of future performance. Ginkgo Bioworks has not provided any assurance that it will meet its expectations moving forward.
In other recent news, Ginkgo Bioworks has seen several significant developments. The company has completed a 1-for-40 reverse stock split, which has been reflected in adjusted stock targets by both BTIG and Goldman Sachs. BTIG has raised its price target to $7.00, while Goldman Sachs has reduced its target to $7.00, each maintaining a Sell rating on the biotech company's stock.
Ginkgo Bioworks' revenue and earnings forecasts remain unchanged, 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 to $36 million, the company reaffirms its full-year guidance, expecting cell engineering revenue between $120 million to $140 million.
In addition, Ginkgo Bioworks has implemented significant amendments to its corporate charter, including the introduction of officer exculpation provisions. The company is also implementing cost reduction strategies, anticipating over $85 million in annualized savings. These recent developments provide critical insights into the company's strategic adjustments and financial outlook.
InvestingPro Insights
As Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) regains its footing with NYSE compliance, investors are closely monitoring the company's financial health and market performance. According to InvestingPro, Ginkgo Bioworks currently holds more cash than debt on its balance sheet, which can offer some reassurance in terms of financial stability. However, the company is also quickly burning through cash, a situation that warrants attention regarding its long-term sustainability.
InvestingPro Data reveals a market capitalization of $346.52 million, which provides a perspective on the company's size in the competitive biotech landscape. The revenue for the last twelve months as of Q2 2024 stands at $184.34 million, yet this reflects a significant decline, with revenue growth down by 43.45% in the same period. These numbers suggest that while Ginkgo Bioworks may be navigating through a challenging phase, it retains a solid gross profit margin of 80.22%, indicating effective cost control relative to its revenue generation.
Investors should note that analysts do not anticipate the company will be profitable this year, and the stock has experienced a substantial drop over the last week. With the price trading near its 52-week low, the market sentiment appears to be factoring in these concerns. For those looking for more detailed analysis and additional InvestingPro Tips, there are currently 17 more tips available for Ginkgo Bioworks at https://www.investing.com/pro/DNA, which could provide deeper insights into the company's performance and valuation metrics.
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