In a recent transaction, Dennis Cho, the Senior Vice President, Chief Legal Officer & Corporate Secretary of Twist Bioscience Corp (NASDAQ:TWST), sold 3,104 shares of the company's common stock. The sale took place on October 2, 2024, with the total value of the transaction amounting to approximately $134,126. The price per share for this transaction was $43.211.
The sale was conducted to cover tax withholding obligations associated with the vesting of Restricted Stock Units. According to the footnotes in the filing, these shares were sold as part of a "sell to cover" transaction mandated by the company's equity incentive plans. This type of transaction is utilized to satisfy tax withholding requirements and does not represent a discretionary trade by the reporting person.
Following the transaction, Cho's remaining ownership in the company consists of 75,289 shares of common stock, indicating a continued vested interest in the company's performance. Investors often monitor insider sales as they may provide insights into an executive's view of the company's current valuation or future prospects.
Twist Bioscience Corp, based in South San Francisco, California, operates in the field of synthetic biology and is known for its innovative approaches in the sector. The company's stock is publicly traded, and such transactions by its executives are closely watched by the market for indications of corporate confidence and direction.
In other recent news, Twist Bioscience Corporation has reported strong financial growth, with a 28% year-over-year increase 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.
Baird, in its analysis, maintained an Outperform rating on Twist Bioscience, observing consistent high pricing premiums for the company's Express Genes service, suggesting strong demand for the company's synthetic genes offering.
Twist Bioscience has also announced an expansion in its DNA synthesis capabilities, now offering gene fragments up to 5.0 kilobases in length. Furthermore, the company has launched a Transaminase Enzyme Screening Kit in collaboration with bitBiome Inc., which aims 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 Dennis Cho's recent stock transaction, let's examine some key financial metrics and insights for Twist Bioscience Corp (NASDAQ:TWST) from InvestingPro.
As of the latest data, Twist Bioscience has a market capitalization of $2.54 billion, reflecting its significant presence in the synthetic biology sector. The company's revenue growth has been robust, 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 innovative position in the industry.
However, it's important to note that Twist Bioscience is currently not profitable, with an adjusted operating income of -$189.94 million over the last twelve months. This is reflected in one of the InvestingPro Tips, which states that analysts do not anticipate the company to be profitable this year. This context may provide some insight into why executives might engage in "sell to cover" transactions to manage their tax obligations.
Despite the lack of profitability, TWST stock has shown significant price movement. An InvestingPro Tip highlights that the stock has experienced a large price uptick over the last six months, which is corroborated by the data showing a 33.8% price total return over that period. This positive momentum might explain why Dennis Cho still maintains a substantial position in the company after the reported sale.
It's worth noting that Twist Bioscience operates with a moderate level of debt and its liquid assets exceed short-term obligations, according to InvestingPro Tips. These factors could provide some financial stability as the company continues to invest in growth and innovation.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for TWST, which could provide valuable insights into the company's financial health and market position.
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