Ginkgo Bioworks (NYSE:DNA) are in full focus after Andreas Halvorsen’s Viking Global reported purchasing 64 million shares of DNA stock, increasing its existing position by 125%. As of Q1, the hedge fund owned 51.05 million shares. Halvorsen, a notable Tiger Cub, founded Viking in 1999. Today, the firm manages more than $24 billion in 13F securities. According to Forbes, Halvorsen has a net worth of $6.6 billion and ranks 375th on the Forbes 2022 Billionaires list as of the time of writing.
In total, Viking owns 93 positions, with DNA stock as its 25th-largest position. Furthermore, the fund has a top 10 holdings concentration of 40.01% and holds each stock in its portfolio for an average of 4.78 quarters.
With that in mind, let’s get into the details of the purchase.
DNA Stock: Viking Global Increases Its Position
As of July 1, Viking owns a total of 115.08 million shares, representing a stake of 9.7%. This comes as the former special purpose acquisition company (SPAC) is down over 60% year-to-date (YTD). Meanwhile, DNA was added to the Russell 3000 index last month. The index tracks the performance of the largest 3,000 stocks on the U.S. stock market. The addition will provide Ginkgo with increased exposure and liquidity.
Viking isn’t the only notable institutional investor to have recently purchased shares of the biotech company. Since June 29, Ark Invest’s Cathie Wood has purchased over 3.5 million shares through the ARK Innovation (NYSEMKT:ARKK) exchange-traded fund (ETF) and the ARK Genomic Revolution ETF (BATS:ARKG). The company is now Ark Invest’s 20th-largest holding. In addition, Ark Invest is the sixth-largest shareholder of DNA with 81.71 million shares.
Ginkgo operates a platform that allows its users to “program cells as easily as we can program computers.” Last year, Ginkgo grew its revenue by 340%, although the company is still unprofitable. The company has also supported coronavirus vaccine efforts, working closely with Moderna (NASDAQ:MRNA). During Q1, the company added 11 new cell programs to its Foundry platform, which represents 175% year-over-year growth. As such, Halvorsen and Wood most likely see long-term potential for the innovative company.
Who Else Is Betting Big on Ginkgo Bioworks?
Tracking institutional ownership is important, as these large funds provide liquidity and support for stocks. During Q1, 183 funds reported owning DNA, an increase of 20 funds from the prior quarter. On the other hand, the institutional put/call ratio lies at 1.37, up from 0.83. This means that more funds own put options against the company than call options. With that in mind, let’s take a look at the top five shareholders.
- Baillie Gifford: 167.75 million shares.
- Reshma Shetty, co-founder: 166.04 million shares. Shetty’s position is only accurate as of Q3 of 2021.
- Cascade Investment: 151.86 million shares. Cascade’s position is only accurate as of Q3 of 2021.
- General Atlantic: 90.81 million shares.
- Austin Che, co-founder: 82.92 million shares. Che’s position is only accurate as of Q4 of 2021.
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.
