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Twist Bioscience CEO sells over $587k in company stock

Published 04/10/2024, 21:10
TWST
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In a recent move that caught the attention of investors, Emily M. Leproust, the Chief Executive Officer of Twist Bioscience Corp (NASDAQ:TWST), a company specializing in synthetic DNA for various applications, has sold a significant number of shares in the company. The transaction, which took place on October 2, 2024, involved the sale of 13,605 shares at a price of $43.211 per share, totaling approximately $587,885.

This sale is part of a "sell to cover" transaction, which is mandated by Twist Bioscience's equity incentive plans. The proceeds from the sale are used to cover tax withholding obligations connected with the vesting of Restricted Stock Units (RSUs). According to the footnotes in the filing, these sales are required by the issuer's policies and should not be interpreted as discretionary trading by Leproust.

Following the sale, Leproust still holds a substantial number of shares in the company, amounting to 481,918 shares of common stock. This indicates that the CEO continues to have a significant stake in Twist Bioscience, aligning her interests with those of the shareholders.

The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency on the trades made by the company's insiders. Such filings are essential for investors who track the buying and selling activities of a company's executives as part of their investment research.

Twist Bioscience Corp remains a key player in the life sciences sector, with its innovative approach to the synthesis and application of DNA. The company's stock performance and the actions of its executives are closely watched by the market, as they can provide insights into the company's current health and future prospects.

In other recent news, Twist Bioscience Corporation has reported a substantial 28% year-over-year growth in revenue for the fiscal third quarter of 2024, reaching $81.5 million. The company's gross margin also improved considerably to 43.3%, with a goal to surpass 50% by the end of fiscal 2025. Furthermore, Twist Bioscience projects a 27% increase in total revenue for fiscal 2024 year-over-year, with anticipated Q4 revenue between $82 million and $83 million.

Baird maintained its Outperform rating on Twist Bioscience, observing a consistent demand for the company's Express Genes service, indicated by elevated pricing premiums. The firm's ongoing analysis suggests robust demand for the company's offerings, which could be a positive sign for the company's market position.

Twist Bioscience has also announced an expansion in its DNA synthesis capabilities, now offering gene fragments up to 5.0 kilobases in length. In collaboration with bitBiome Inc., the company has launched a Transaminase Enzyme Screening Kit, aiming to provide a more environmentally friendly alternative for synthesizing chiral amines, key components in drug manufacturing. These are recent developments in Twist Bioscience's operations and strategic initiatives.

InvestingPro Insights

To provide additional context to Emily M. Leproust's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Twist Bioscience Corp (NASDAQ:TWST).

According to InvestingPro data, Twist Bioscience has a market capitalization of $2.54 billion, reflecting its significant presence in the synthetic DNA market. The company's revenue growth is noteworthy, with a 25.37% increase over the last twelve months as of Q3 2024, reaching $295.21 million. This growth trajectory aligns with the company's position as a key player in the life sciences sector, as mentioned in the article.

However, it's important to note that despite the revenue growth, Twist Bioscience is not currently profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This context helps explain why the CEO's stock sale, which was part of a mandated "sell to cover" transaction, might be viewed differently than discretionary trading.

Another relevant InvestingPro Tip highlights that the stock price movements for TWST are quite volatile. This volatility is evident in the stock's performance metrics, with a significant 128.95% price total return over the past year, despite a 7.76% decline in the last week. This information provides investors with a broader perspective on the stock's behavior beyond the CEO's recent transaction.

For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Twist Bioscience, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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