BOSTON - Ginkgo Bioworks Holdings, Inc. (NYSE: NYSE:DNA), a company specializing in cell programming and biosecurity, has been notified by the New York Stock Exchange (NYSE) that it does not meet the exchange's continued listing standards due to the average closing price of its Class A common stock falling below $1 over a consecutive 30 trading-day period. The notification, received on Sunday, May 7, 2024, does not immediately affect the stock's listing.
Ginkgo will inform the NYSE of its plan to regain compliance within the next 10 business days and has a six-month period to meet the minimum price requirement. During this time, the company's stock will remain listed and continue trading on the NYSE with the symbol "DNA," but with an additional ".BC" designation indicating noncompliance with listing requirements.
The company's business operations are not directly impacted by the NYSE notice. Ginkgo is exploring all options to address the stock price deficiency and intends to comply with the NYSE's listing standards within the granted period.
Ginkgo Bioworks provides comprehensive services in cell programming for various industries, including food, agriculture, pharmaceuticals, and industrial chemicals. The company is also engaged in developing infrastructure and technologies to respond to biological threats through its Ginkgo Biosecurity division.
The notice from the NYSE comes amid the challenges of maintaining stock value in a competitive and highly regulated industry. The company's future actions to regain compliance will be closely monitored by investors and stakeholders.
This report is based on a press release statement from Ginkgo Bioworks. The company has made forward-looking statements regarding its ability to regain compliance and continue meeting NYSE listing standards. However, these statements are subject to various risks and uncertainties that could affect the company's ability to achieve these goals.
InvestingPro Insights
Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) faces a critical juncture as it works towards regaining compliance with NYSE's listing standards. The company's stock has experienced significant volatility, as reflected in recent InvestingPro data. As of the last twelve months up to Q1 2024, Ginkgo Bioworks has seen a stark revenue decline of 46.49%, with the quarterly figures showing an even sharper drop of 52.98%. Despite these challenges, the company maintains a strong gross profit margin of 80.43%, signaling efficiency in its core operations.
The market response to these financials has been undeniably tough on the stock price, which has plummeted by almost 43.64% over the past three months. This trend aligns with the InvestingPro Tip highlighting that the stock has taken a significant hit over the last week, month, and six-month periods. This decline has pushed the stock's price to just 31.55% of its 52-week high, with a previous close at $0.76. The company's market capitalization currently stands at $1.86 billion, reflecting investor sentiment and market conditions.
InvestingPro Tips also indicate that Ginkgo Bioworks holds more cash than debt on its balance sheet, which could provide some financial flexibility in these trying times. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a capacity to weather short-term financial storms. However, analysts are wary, as they do not anticipate the company will be profitable this year, and they expect a sales decline in the current year.
For investors seeking a more nuanced analysis of Ginkgo Bioworks' prospects, InvestingPro offers a wealth of additional tips. There are currently 13 InvestingPro Tips available for Ginkgo Bioworks, which can be accessed by visiting https://www.investing.com/pro/DNA. For those interested in a deeper dive, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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