Twist Bioscience (NASDAQ:TWST) Corporation (NASDAQ:TWST) has reported a significant stock sale by one of its top executives. Paula Green, the company's Senior Vice President of Human Resources, sold 3,310 shares of common stock at a price of $43.211 per share. The total value of the transaction amounted to approximately $143,028.
The sale took place on October 2, 2024, as indicated in the recent SEC filing. The transaction was part of a "sell to cover" operation, which is a common practice where shares are sold to cover tax withholding obligations upon the vesting of Restricted Stock Units (RSUs). According to the footnotes provided in the filing, these sales are mandated by Twist Bioscience's equity incentive plans and do not represent discretionary trading by Green.
Following the transaction, Green's remaining direct ownership in the company stands at 84,585 shares of Twist Bioscience's common stock. This latest move by an insider of Twist Bioscience provides investors with a glimpse into the stock transactions happening at the executive level of the company. It is a routine disclosure that offers transparency into the financial dealings of the company's management team.
Twist Bioscience Corp, based in South San Francisco, California, operates within the biological products industry, excluding diagnostic substances. The company has been a player in the life sciences sector, focusing on synthetic DNA manufacturing for various applications, including medical research, data storage, and industrial and agricultural biotechnology.
Investors often monitor insider transactions as they can provide insight into the executives' perspective on the company's current valuation and future prospects. However, it's important to note that such transactions do not necessarily indicate a change in company fundamentals and can be influenced by a variety of personal financial considerations.
In other recent news, Twist Bioscience Corporation has reported a robust 28% year-over-year growth in revenue for the fiscal third quarter of 2024, totaling $81.5 million. The company's gross margin also improved significantly to 43.3%, with a target to exceed 50% by the end of fiscal 2025. Twist Bioscience anticipates a 27% increase in total revenue for fiscal 2024 year-over-year, with projected Q4 revenue between $82 million and $83 million.
In addition, Twist Bioscience has expanded its DNA synthesis capabilities, now offering gene fragments up to 5.0 kilobases in length. The company also launched a Transaminase Enzyme Screening Kit in collaboration with bitBiome Inc., providing a more environmentally friendly alternative for synthesizing chiral amines, key components in drug manufacturing.
Baird maintained its Outperform rating on Twist Bioscience, observing consistent elevated demand for the company's Express Genes service. The firm's analysis suggests that the sustained high premiums could indicate strong demand for the company's synthetic genes offering. These are recent developments in Twist Bioscience's operations and strategic initiatives.
InvestingPro Insights
To provide additional context to Paula Green's stock sale, let's examine some key financial metrics and insights from InvestingPro for Twist Bioscience Corporation (NASDAQ:TWST).
According to InvestingPro data, Twist Bioscience has a market capitalization of $2.54 billion as of the latest available information. The company's revenue for the last twelve months as of Q3 2024 stood at $295.21 million, with a notable revenue growth of 25.37% over the same period. This growth trajectory is further emphasized by the quarterly revenue growth of 27.81% in Q3 2024, indicating a robust expansion of the company's business operations.
Despite the strong top-line performance, it's worth noting that Twist Bioscience is currently not profitable. The company reported an adjusted operating income of -$189.94 million for the last twelve months as of Q3 2024, resulting in an operating income margin of -64.34%. This aligns with an InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year.
Interestingly, while the company faces profitability challenges, its stock has shown significant momentum. An InvestingPro Tip highlights that Twist Bioscience has delivered a high return over the last year, which is corroborated by the impressive 128.95% one-year price total return as of the latest data point. Additionally, the stock has seen a large price uptick over the last six months, with a 33.8% return over that period.
These financial metrics and stock performance indicators provide valuable context to the insider transaction reported. While Paula Green's stock sale was part of a routine "sell to cover" operation, the overall financial picture of Twist Bioscience suggests a company experiencing strong revenue growth but still working towards profitability, which is not uncommon in the biotechnology sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Twist Bioscience, providing deeper insights into the company's financial health and market position.
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