Twist Bioscience CEO Sells Over $81K in Company Stock

Twist Bioscience Corp’s CEO, Emily M. Leproust, recently sold 1,730 shares of the company’s stock, as reported in an SEC filing. This transaction occurred on September 20, 2024, with shares sold at an average price of $46.941, amounting to around $81,207.

The sale was a necessary step to meet tax withholding obligations associated with the vesting of Restricted Stock Units (RSUs). Under the company’s equity incentive plans, executives are required to conduct “sell to cover” transactions to cover any tax liabilities arising from stock compensation.

Despite this sale, Leproust continues to hold 495,523 shares of Twist Bioscience common stock, indicating her commitment to the company. It’s important to understand that such transactions are common among executives and do not necessarily signal a change in their outlook regarding the company’s prospects.

Twist Bioscience is recognized for its contributions to synthetic biology and provides products across various sectors, including healthcare, agriculture, industrial chemicals, and data storage.

Insider transactions are closely watched by investors as they can provide insight into the company’s health and management’s confidence. However, it’s crucial to note that insider selling can have multiple motivations and may not always reflect the executive’s belief in the firm’s future performance.

In recent developments, Twist Bioscience has reported strong financial growth, with a 28% year-over-year increase in revenue for the fiscal third quarter of 2024, reaching $81.5 million. The company’s gross margin improved significantly to 43.3%, with expectations to surpass 50% by the end of fiscal 2025. Additionally, a 27% revenue increase year-over-year is projected for fiscal 2024, with estimates for Q4 revenue falling between $82 million and $83 million.

The company has enhanced its DNA synthesis capabilities, now offering gene fragments up to 5.0 kilobases long. This advancement aims to streamline research processes and aligns with the company’s strategy to provide essential tools for synthetic biology and genomics.

Twist Bioscience also partnered with bitBiome Inc. to launch a Transaminase Enzyme Screening Kit, designed to offer a more environmentally friendly alternative for synthesizing chiral amines, which are important in drug manufacturing.

Baird, an independent financial services firm, has maintained an Outperform rating for Twist Bioscience, emphasizing the strong demand for the company’s synthetic gene offerings.

Overall, while the recent stock transaction by the CEO has drawn attention, the company’s promising financial metrics and new developments in product offerings illustrate a broader narrative of growth and innovation.