Ginkgo Bioworks Holdings Insider Sellers Miss The Bus As Stock Jumps 10.0%

Even though Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) stock gained 10.0% last week, insiders who sold US$220k worth of stock over the past year are probably better off. Selling at an average price of US$10.99, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Ginkgo Bioworks Holdings

Over the last year, we can see that the biggest insider sale was by the Independent Director, Christian O. Henry, for US$220k worth of shares, at about US$11.06 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$8.91. So it is hard to draw any strong conclusion from it. Christian O. Henry was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ginkgo Bioworks Holdings

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of Ginkgo Bioworks Holdings shares, worth about US$86m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Ginkgo Bioworks Holdings Tell Us?

It doesn't really mean much that no insider has traded Ginkgo Bioworks Holdings shares in the last quarter. We don't take much encouragement from the transactions by Ginkgo Bioworks Holdings insiders. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Ginkgo Bioworks Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.