Insiders seem to have made the most of their holdings by selling US$4.9m worth of Twist Bioscience Corporation (NASDAQ:TWST) stock at an average sell price of US$107 during the past year. The company's market valuation decreased by US$181m after the stock price dropped 7.3% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Twist Bioscience Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Keith Crandell, sold US$4.8m worth of shares at a price of US$108 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$40.72. So it may not shed much light on insider confidence at current levels.
Insiders in Twist Bioscience didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Twist Bioscience Have Sold Stock Recently
The last three months saw some Twist Bioscience insider selling. Insiders divested only US$30k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Does Twist Bioscience Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Twist Bioscience insiders own 1.1% of the company, worth about US$25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Twist Bioscience Insiders?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. We're a little cautious about the insider selling at Twist Bioscience. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for Twist Bioscience (2 are significant!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.