Although Gingko Bioworks (NYSE:DNA) stock is in the red today, Cathie Wood’s Ark Invest has been busy buying up shares.
So far, 2022 has not been pleasant for biotech stocks, especially Ginkgo. DNA stock is down more than 55% year-to-date (YTD). Yet, despite the steep loss, Ark Invest has purchased over 1 million shares this week across its exchange-traded funds (ETFs).
Here’s what you need to know about the recent Ginkgo purchases.
Cathie Wood Buys DNA Stock
On Monday, Ark Invest reported buying 232,562 shares of DNA stock through the Ark Genomic Revolution ETF (BATS:ARKG) and the Ark Innovation ETF (NYSEMKT:ARKK). Yesterday, the firm also reported purchasing an additional 1.3 million shares through the same two funds. After the purchase, ARKG owns a total of 19.64 million shares, which accounts for 2.55% of the ETF. Meanwhile, ARKK owns a total of 44.96 million shares, which accounts for 1.75% of the fund. Furthermore, Ginkgo is ARKG’s 13th largest position and ARKK’s 21st largest.
Ark isn’t the only notable investor that has picked up shares of DNA recently. Based on an amended 13G filing received on April 6, Baillie Gifford has also purchased 48.87 million shares, which increased its existing position by 41%. After the purchase, Baillie owns 167.75 million shares of the biotech company, making it the largest shareholder.
So, why did Ark and Baillie decide to purchase shares of Ginkgo? Well, the company’s technology has a wide range of uses. Ginkgo has a goal of programming cells to make the world a better place. Using programmed cells, the company can “make everything from food to materials to therapeutics.” As a result, the two firms likely foresee Ginkgo’s technology expanding successfully into further markets.
With that in mind, let’s take a look at who else is betting on DNA stock alongside Ark and Baillie.
Who Else Is Betting Big on Ginkgo Bioworks?
Tracking institutional ownership is important, as these large funds provide liquidity and price support for stocks. According to WhaleWisdom, 163 funds own DNA stock. That’s an increase of 37 funds from the prior quarter. On top of that, the institutional put/call ratio lies at 0.83, which signifies that more funds own call options against the company than put options. So, with that said, let’s go over the top five shareholders as of the fourth quarter:
- Baillie Gifford: 167.75 million shares.
- General Atlantic: 111.57 million shares.
- Austin Che, cofounder: 82.92 million shares.
- Senator Investment Group: 76.59 million shares.
- Tom Knight Jr., cofounder: 75.08 million shares.
It should be noted that cofounder Reshma Shetty owns 166.04 million shares and Cascade Investment owns 151.86 million shares. However, the two parties have not yet submitted a Q4 position update. In addition, CEO Jason Kelly owns 82.58 million shares as of the end of Q3.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
