Twist Bioscience Corporation (TWST) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Twist Bioscience Corporation (NASDAQ: TWST) stock jumped 4.97% on Friday to $27.03 against a previous-day closing price of $25.75. With 1.0 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.22 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $27.49 whereas the lowest price it dropped to was $25.12. The 52-week range on TWST shows that it touched its highest point at $66.15 and its lowest point at $21.78 during that stretch. It currently has a 1-year price target of $36.33. Beta for the stock currently stands at 1.11.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TWST was up-trending over the past week, with a rise of 1.77%, but this was up by 13.62% over a month. Three-month performance dropped to -10.73% while six-month performance fell -43.38%. The stock lost -51.04% in the past year, while it has gained 13.52% so far this year. A look at the trailing 12-month EPS for TWST yields -4.03 with Next year EPS estimates of -4.03. For the next quarter, that number is -1.11. This implies an EPS growth rate of -28.30% for this year and 13.50% for next year.

Float and Shares Shorts:

At present, 56.52 million TWST shares are outstanding with a float of 56.00 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.67 million, which was 10.06% higher than short shares on Sep 14, 2022. In addition to Dr. Emily Marine Leproust Ph.D. as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. James M. Thorburn serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 103.84% of TWST’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 68.56% of TWST, in contrast to 28.15% held by mutual funds. Shares owned by individuals account for 13.66%. As the largest shareholder in TWST with 11.80% of the stake, ARK Investment Management LLC holds 6,676,908 shares worth 6,676,908. A second-largest stockholder of TWST, The Vanguard Group, Inc., holds 4,788,092 shares, controlling over 8.46% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TWST, holding 3,938,473 shares or 6.96% stake. With a 6.72% stake in TWST, the ARK Innovation ETF is the largest stakeholder. A total of 3,802,072 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 5.73% of TWST stock, is the second-largest Mutual Fund holder. It holds 3,241,352 shares valued at 77.18 million. ARK Genomic Revolution ETF holds 4.37% of the stake in TWST, owning 2,474,311 shares worth 58.91 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TWST since 10 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TWST analysts setting a high price target of $50.00 and a low target of $24.00, the average target price over the next 12 months is $35.88. Based on these targets, TWST could surge 84.98% to reach the target high and fall by -11.21% to reach the target low. Reaching the average price target will result in a growth of 32.74% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TWST will report FY 2023 earnings on 12/20/2023. Analysts have provided yearly estimates in a range of -$4.40 being high and -$5.41 being low. For TWST, this leads to a yearly average estimate of -$4.61. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Twist Bioscience Corporation surprised analysts by $0.34 when it reported -$0.91 EPS against a consensus estimate of -$1.25. The surprise factor in the prior quarter was $0.21. Based on analyst estimates, the high estimate for the next quarter is -$1.04 and the low estimate is -$1.19. The average estimate for the next quarter is thus -$1.11.

Summary of Insider Activity:

Insiders traded TWST stock several times over the past three months with 8 Buys and 28 Sells. In these transactions, 163,316 shares were bought while 12,858 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 128 over the past year. The total number of shares bought during that period was 260,811 while 113,677 shares were sold.

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