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Twist Bioscience exec sells shares to cover tax obligations

Published 03/18/2024, 04:07 PM
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Twist Bioscience (NASDAQ:TWST) Corporation (NASDAQ:TWST) reported that Dennis Cho, the company's Senior Vice President, Chief Legal Officer, and Corporate Secretary, sold shares of the company's stock, primarily to satisfy tax withholding obligations. The transaction, which took place on March 14, 2024, involved the sale of 93 shares at a price of $34.60 per share, totaling approximately $3,217.

The sale was conducted in accordance with the company's equity incentive plans, which mandate a "sell to cover" transaction to fund tax withholding obligations arising from the vesting of Restricted Stock Units (RSUs). This type of sale is not considered a discretionary trade by the reporting person but is instead required by the company's policy on handling tax obligations related to equity compensation.

Following the transaction, Dennis Cho's ownership in Twist Bioscience stands at 81,363 shares of common stock, maintaining a significant stake in the company. The details of the transaction were disclosed in a Form 4 filing with the Securities and Exchange Commission, dated March 18, 2024.

Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, in this case, the sale represents a routine financial management practice rather than a change in the executive's view of the company's potential.

Twist Bioscience Corp, headquartered in South San Francisco, California, operates in the biotechnology industry, focusing on synthetic DNA for various applications, including medical research, agricultural biotech, and industrial chemicals.

InvestingPro Insights

Amid the recent insider transaction at Twist Bioscience Corporation , investors seeking a deeper understanding of the company's financial health may find value in the latest data and insights from InvestingPro. The company, with a current market capitalization of $1.96 billion, has shown a notable revenue growth of 21.58% over the last twelve months as of Q1 2024, outpacing the quarterly growth rate of 31.81%. This suggests a strong upward trajectory in Twist's ability to generate sales.

However, despite the positive revenue trends, Twist Bioscience has faced challenges in profitability. The company's adjusted P/E ratio for the last twelve months as of Q1 2024 stands at -9.99, indicating that it is not currently profitable. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Additionally, the company's operating income margin for the same period is -79.5%, further emphasizing the profitability concerns.

Investors should also be aware of the stock's volatility, as highlighted by an InvestingPro Tip. Over the last week, the stock price has taken a significant dip of -8.74%, and the past month has seen a decrease of -17.73%. However, looking at a longer horizon, the stock has experienced a large price uptick of 63.94% over the last six months, with an impressive one-year total return of 103.76%. This volatility could present both risks and opportunities, depending on an investor's strategy.

For those interested in further analysis and additional tips, InvestingPro offers a comprehensive suite of tools and insights. There are currently 9 additional InvestingPro Tips available for Twist Bioscience, which can provide investors with a more nuanced view of the company's financial and market performance. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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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