Twist Bioscience (NASDAQ:TWST) Shares Down 9.7% Following Insider Selling

Twist Bioscience Corporation (NASDAQ:TWST)’s stock price dropped 9.7% during mid-day trading on Tuesday following insider selling activity. The company traded as low as $186.61 and last traded at $185.0970. Approximately 1,748,314 shares traded hands during mid-day trading, an increase of 8% from the average daily volume of 1,618,778 shares. The stock had previously closed at $205.00.

Specifically, CAO Robert Werner sold 1,482 shares of the firm’s stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $188.88, for a total value of $279,920.16. Following the completion of the transaction, the chief accounting officer owned 42,917 shares in the company, valued at $8,106,162.96. This trade represents a 3.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Dennis Cho sold 9,514 shares of Twist Bioscience stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $188.88, for a total value of $1,797,004.32. Following the completion of the sale, the insider directly owned 63,789 shares in the company, valued at approximately $12,048,466.32. This represents a 12.98% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, CEO Emily M. Leproust sold 45,736 shares of the company’s stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $188.88, for a total transaction of $8,638,615.68. Following the sale, the chief executive officer owned 567,308 shares in the company, valued at approximately $107,153,135.04. This represents a 7.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on TWST. BWS Financial restated a “sell” rating and issued a $45.00 price target on shares of Twist Bioscience in a research note on Friday, September 18th. TD Cowen reiterated a “buy” rating on shares of Twist Bioscience in a research note on Monday, August 3rd. Guggenheim raised their target price on shares of Twist Bioscience from $107.00 to $212.00 and gave the company a “buy” rating in a research note on Thursday, October 1st. Evercore downgraded shares of Twist Bioscience from an “outperform” rating to an “in-line” rating and set a $102.00 target price on the stock. in a report on Monday, July 6th. Finally, Leerink Partners increased their price target on shares of Twist Bioscience from $160.00 to $190.00 and gave the company an “outperform” rating in a research note on Tuesday, September 29th. Eight equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $126.18.

Trending Headlines about Twist Bioscience

Here are the key news stories impacting Twist Bioscience this week:

• Positive Sentiment: Recent business momentum remains intact: Twist’s latest quarterly update included record revenue of $118.4 million, revenue growth of 23% year over year, gross margin above 52%, and higher full-year revenue guidance. Revenue also exceeded analyst expectations, although the company remained loss-making.
• Positive Sentiment: Lilly collaboration initially boosted enthusiasm: News of the Lilly TuneLab partnership helped drive a substantial rally, reflecting investor interest in Twist’s synthetic-DNA platform and potential drug-discovery applications. However, the durability and strategic value of the collaboration are now being debated.
• Positive Sentiment: Some analysts remain constructive: Guggenheim reportedly raised its price target to $212 and maintained a buy rating, while broader analyst coverage still reflects a “Moderate Buy” consensus. Twist Bioscience stock gained after Lilly deal
• Neutral Sentiment: Insider transactions were largely prearranged: CEO Emily Leproust sold shares under a Rule 10b5-1 plan, including stock used for tax withholding, while other executives also reported sales. These transactions do not necessarily indicate discretionary bearish views, but the concentration of selling has attracted investor attention. SEC insider transaction filing
• Negative Sentiment: Insider selling and valuation pressure: Recent filings showed sales by Leproust and other insiders, while reported insider activity over the past six months contained sales but no purchases. With TWST trading far above many older analyst targets and still posting losses, the filings encouraged profit-taking after the stock’s major run-up.
• Negative Sentiment: Partnership skepticism and dilution concerns: Analysts questioning the eventual strategic payoff from the Lilly deal weakened the bullish narrative. Investors are also mindful of Twist’s $300 million August stock offering, which increased potential dilution.

Twist Bioscience Trading Down 6.8%

The firm has a market capitalization of $9.76 billion, a P/E ratio of -70.11 and a beta of 2.19. The business’s 50-day moving average is $141.74 and its 200 day moving average is $95.17. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.67 and a quick ratio of 2.38.

Twist Bioscience (NASDAQ:TWST) last posted its quarterly earnings data on Monday, August 3rd. The company reported ($0.56) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.51) by ($0.05). Twist Bioscience had a negative net margin of 31.66% and a negative return on equity of 28.64%. The business had revenue of $118.38 million during the quarter, compared to the consensus estimate of $114.55 million. During the same period in the prior year, the firm earned $0.33 EPS. The business’s revenue for the quarter was up 23.2% on a year-over-year basis. As a group, analysts anticipate that Twist Bioscience Corporation will post -2.12 EPS for the current fiscal year.

Institutional Investors Weigh In On Twist Bioscience

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. E. Ohman J or Asset Management AB acquired a new position in Twist Bioscience in the 2nd quarter valued at $853,000. Allspring Global Investments Holdings LLC acquired a new stake in shares of Twist Bioscience during the 1st quarter worth $22,563,000. Bank of America Corp DE increased its position in shares of Twist Bioscience by 46.3% in the first quarter. Bank of America Corp DE now owns 584,261 shares of the company’s stock worth $27,764,000 after purchasing an additional 184,907 shares during the period. William Blair Investment Management LLC acquired a new position in Twist Bioscience in the second quarter valued at about $223,722,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Twist Bioscience in the second quarter valued at about $8,215,000.

Twist Bioscience Company Profile

Twist Bioscience Corporation (NASDAQ:TWST) is a biotechnology company that develops and manufactures synthetic DNA using a silicon-based production platform. Its technology is designed to enable the precise, high-throughput synthesis of DNA at smaller scale and with potentially lower material consumption than traditional methods.

The company provides synthetic DNA products and services for applications in drug discovery and development, biotechnology research, agriculture, industrial chemicals and other life sciences markets.