Twist Bioscience Executive Sells Shares Valued at Over $13K

Twist Bioscience Corporation has disclosed a recent transaction involving its Senior Vice President of Human Resources, Paula Green, who sold shares of the company’s stock. According to the latest filing with the Securities and Exchange Commission, Green sold 297 shares at a price of $46.941 each, resulting in a total transaction value of approximately $13,941.

This sale was classified as a “sell to cover” transaction, a standard practice whereby employees sell a portion of their shares to cover tax obligations associated with the vesting of Restricted Stock Units (RSUs). This type of transaction is typically required by company policy under equity incentive plans and should not be interpreted as a discretionary market trade.

Following this sale, Green retains ownership of 87,895 shares of Twist Bioscience. The company, located in South San Francisco, California, is recognized for its innovative methods in synthetic biology and operates within the biological products sector.

Investors often pay close attention to insider trading activities as these can provide insights regarding executives’ views on the company’s current valuation and future potential. However, it is crucial to understand that transactions made to meet tax obligations may not accurately represent an individual’s perspective on the company’s financial condition or performance.

The transaction occurred on September 20, 2024, and was publicly filed on September 24, 2024.

In other developments, Twist Bioscience has reported an impressive 28% year-over-year revenue growth for the fiscal third quarter of 2024, amounting to $81.5 million. The company’s gross margin has also seen a significant increase to 43.3%, with expectations to exceed 50% by the end of fiscal 2025. Additionally, Twist Bioscience projects a 27% rise in total revenue for fiscal 2024 compared to the previous year, with anticipated Q4 revenue ranging between $82 million and $83 million.

The company has enhanced its DNA synthesis capabilities, now providing gene fragments up to 5.0 kilobases in length. In partnership with bitBiome Inc., Twist Bioscience has launched a Transaminase Enzyme Screening Kit, aiming to create a more environmentally friendly option for synthesizing chiral amines, which are vital in drug manufacturing.

Investment firm Baird has maintained an Outperform rating on Twist Bioscience, noting an increase in the average premium charged for the company’s Express Genes service to academic institutions, indicating strong demand for its synthetic gene offerings.

In terms of financial performance, analysts do not expect Twist Bioscience to achieve profitability this year, as evidenced by its negative P/E ratio of -12.24 and an adjusted P/E ratio of -15.1 for the past twelve months (as of Q3 2024). This suggests that the market values the company primarily based on its growth potential rather than its current earnings.

Despite not being profitable, Twist Bioscience’s stock has yielded a significant return of 122.66% over the past year, which may reflect investor optimism regarding the company’s future prospects, further bolstered by a 25.37% revenue growth in the last twelve months. The company also appears to possess sufficient liquid assets to cover its short-term obligations, indicating financial stability.

The current market capitalization stands at $2.72 billion, and the company maintains a moderate level of debt, which may appeal to risk-averse investors. As Twist Bioscience does not issue dividends, this could be a consideration for income-focused investors, as the company prioritizes reinvestment of earnings into growth initiatives.

As the next earnings date approaches on November 15, 2024, stakeholders and potential investors may find it beneficial to stay informed with the latest data and analyses surrounding the company.