We wouldn't blame Twist Bioscience Corporation (NASDAQ:TWST) shareholders if they were a little worried about the fact that Keith Crandell, the Independent Director recently netted about US$4.8m selling shares at an average price of US$107. That sale reduced their total holding by 37% which is hardly insignificant, but far from the worst we've seen.
Twist Bioscience Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Co-Founder, Emily Leproust, for US$13m worth of shares, at about US$181 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$101). So it may not tell us anything about how insiders feel about the current share price.
In the last year Twist Bioscience insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Twist Bioscience better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Twist Bioscience Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.3% of Twist Bioscience shares, worth about US$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Twist Bioscience Tell Us?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Twist Bioscience has 5 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Twist Bioscience may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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