Twist CEO Sells $56M at Rally Peak, Stock Tops Targets
Twist Bioscience CEO Emily Leproust sold $56.33M on September 17 at the peak of a 33% rally tied to the Lilly TuneLab partnership, cashing out deeply in-the-money options originally priced at $8.82-$2
Twist CEO Sells $56M at Rally Peak, Stock Tops Targets
NEW YORK, September 22 —
When Twist Bioscience Corporation (TWST) CEO Emily Leproust sold $56.33M of stock on September 17, she cashed out at the top of a seven-session rally tied to the Lilly TuneLab AI partnership, with shares 50% above analyst consensus and a 211% EPS miss four weeks prior. Her exercise price was as low as $8.82.
- Most recent quarter EPS: -$0.56 vs. estimate -$0.18, a 211% miss; free cash flow: -$65M annually
- TWST at $164.60, 50% above analyst consensus of $109.58; 23.0% of the float sold short
- CEO Leproust sold $56.33M in thirteen tranches on September 17, exercising options priced at $8.82, $26.66
Thirteen Tranches, One Direction
Twist Bioscience Corporation makes synthetic DNA products including gene fragments, oligo pools, and library preparation kits used by biotech and pharma clients for CRISPR gene editing, targeted next-generation sequencing, and antibody engineering. Leproust's thirteen transactions on September 17, priced at $151.46 to $163.39 and funded by options originally at $8.82 and $26.66, converted deeply in-the-money grants to cash at what proved to be the stock's seven-day rally peak. The 90-day insider record shows $76.84M in net selling with zero purchases. When the executive with the most direct knowledge of the Lilly TuneLab partnership's near-term revenue potential chooses liquidation over holding, the message is clear.
Cash Burn Makes the Offering Pattern Legible
Twist's earnings trajectory has deteriorated sharply. Two consecutive beats of 10.0% and 3.8% preceded a 13.2% miss and then a 211.1% blowup, the latest quarter posting EPS of -$0.56 against a -$0.18 estimate. With $170M cash, $110M debt, and $65M in annual cash consumption, the balance sheet covers roughly 2.6 years before replenishment. The August 424B5 and 424B7 prospectus filings show the equity pipeline was already active. TTM revenue of $430M growing 23.2% at 52.0% gross margin is a real business; a DCF calculator on those numbers still doesn't reach $164.60 without heroic assumptions.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| TWST | $10.9B | n/a | +500.0% |
| PACB | $457M | n/a | +5.4% |
| TXG | $10.5B | 396.9x | +533.3% |
| BEAM | $2.7B | n/a | +6.4% |
| CDNA | $2.9B | 42.5x | +248.9% |
| NTLA | $1.8B | n/a | -28.5% |
What the Bears Already Know
A 23.0% short interest means the bears were positioned before the Lilly TuneLab partnership drove the seven-session, 33% surge. The bull case from here requires the next quarter to show a narrowing EPS miss and disclosed revenue from the AI collaboration; anything less cements the gap between the $164.60 market price and the $109.58 analyst consensus. With $76.84M in net insider selling and zero purchases over 90 days, the executive team's preference is plain. Run the free Twist Bioscience Corporation deep-dive → for current data on whether that earnings inflection is coming.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Why did Twist Bioscience CEO sell $56 million?
Emily Leproust sold $56.33M in thirteen tranches on September 17, exercising deeply in-the-money options originally priced at $8.82-$26.66 per share. She sold at prices ranging from $151.46 to $163.39, capturing the peak of a seven-session rally driven by the Lilly TuneLab partnership announcement.
How much higher is Twist stock trading above analyst targets?
Twist Bioscience shares closed at $164.60, representing a 50% premium to the analyst consensus price target of $109.58. The stock has rallied despite a severe 211% EPS miss in the most recent quarter, where the company posted earnings of -$0.56 versus a -$0.18 estimate.
What is Twist Bioscience's cash burn situation?
Twist reported annual free cash flow of negative $65M, with $170M in cash and $110M in debt, giving the balance sheet roughly 2.6 years of coverage before requiring capital replenishment. TTM revenue of $430M growing 23.2% at 52.0% gross margin shows a real business, but cash consumption remains a structural constraint.
What does insider selling reveal about management confidence?
The 90-day insider record shows $76.84M in net selling with zero purchases from executives. When the CEO chose to liquidate deeply in-the-money options at the rally peak rather than hold them, the article notes this signal is difficult to dismiss given her direct knowledge of the Lilly TuneLab partnership's near-term revenue potential.
What needs to happen for Twist to justify its current stock price?
The bull case requires the next quarter to show a narrowing EPS miss and disclosed revenue from the Lilly AI collaboration. With $76.84M in net insider selling over 90 days, management's revealed preference suggests the market price of $164.60 significantly exceeds their own valuation views.
Twist Bioscience CEO Emily Leproust sold approximately $56.33M in company stock on September 17 — her largest single-day liquidation on record — exercising options originally priced as low as $8.82 per share and selling into a rally that has pushed TWST to $164.60, roughly 50% above the analyst consensus price target of $109.58. The sale arrives four weeks after the company's most recently reported quarter missed EPS estimates by 211%, with free cash flow running at negative $65M annually.