GET DAILY SIGNALSWhy Is Twist Bioscience (TWST) Stock Down -6.32% Today?
Key Takeaways
- Shares of TWST fell 6.32% to $107.00 in early Friday trading, extending the post-earnings decline that began Thursday.
- The trigger was a fourth-quarter beat paired with fiscal 2027 revenue guidance implying growth of roughly 21% at the midpoint, a step down from the 28% just delivered.
- A cluster of analyst price-target cuts overnight reinforced the derating: Canaccord Genuity to $150 from $205, Guggenheim to $150 from $212, Baird to $135 from $187 and Jefferies to $125 from $150.
- The consensus 12-month target slid to about $170 from $188.50, even as most firms kept Buy or Outperform ratings.
- Broader biotech weakness added pressure, with the sector benchmarks down more than 1% and unprofitable life-science names lagging a flat S&P 500.
- Turnover stayed heavy, with Thursday's 2.5 million shares roughly double the three-month average of about 1.26 million.
- News Significance Score: 27/100 — moderate, verified news flow, but a move barely larger than this stock's routine daily swing.
- Investors can dig into Price Targets, Earnings history and Forecast pages for deeper coverage of the name.
- For systematic strategies on this and thousands of other symbols, explore Trending AI Robots.
Opening Summary
Twist Bioscience Corporation (TWST) is a synthetic biology company that manufactures synthetic DNA on a proprietary silicon-based platform, selling genes, next-generation sequencing panels, antibody libraries and protein characterization services to therapeutics, diagnostics and academic customers. In Friday's session the stock traded at $107.00, down 6.32% from the prior close of $114.22, confirming a second consecutive session of losses. The immediate reason cited by markets is the combination of a modestly decelerating fiscal 2027 growth outlook and a wave of analyst price-target reductions published after Thursday's results. The company itself beat expectations on both revenue and earnings, so the selling reflects a reset of expectations rather than deteriorating fundamentals.
Earnings Beat Meets a Slower Growth Guide
Thursday's fiscal fourth-quarter report was, on the headline numbers, strong. Revenue reached $126.6 million, up 28% year over year and above the roughly $123.6 million consensus, marking the fifteenth consecutive quarter of sequential growth. The adjusted loss of $0.32 per share was materially narrower than the $0.38 expected, gross margin expanded to 53.1%, and adjusted EBITDA turned positive at $2.2 million for the first time. Full-year revenue of $459.4 million rose 22%, more than $30 million above the initial plan.
The problem sat in the outlook. Management guided fiscal 2027 revenue to $550–560 million, about 21% growth at the midpoint, and first-quarter revenue to $130–132 million. That implies a clear downshift from the 28% pace just posted. The guide also assumes roughly $100 million of AI drug discovery revenue — a business that grew 175% to $59.1 million in fiscal 2026 — meaning growth in the company's hottest category falls below triple digits next year. With capex rising to about $75 million within a two-year, $150 million capacity program, investors chose to mark the multiple down rather than capitalise the beat.
A Wave of Price-Target Cuts
The second, more direct driver of Friday's move was the sell-side response. Canaccord Genuity cut its target to $150 from $205 while keeping a Buy rating, citing lower out-year revenue estimates in its discounted cash flow model. Guggenheim moved to $150 from $212, Baird to $135 from $187, and Jefferies to $125 from $150 while staying at Hold, flagging disappointment over the antibody discovery trajectory. The median Street target fell to about $170 from $188.50 across 11 analysts, still well above the current price but a visible reduction in expected upside.
Valuation and Positioning After a 250% Run
Twist entered the report up more than 250% year to date, having peaked near $219.71 in early October. That left almost no room for a merely in-line outlook, and even a broad beat could not hold the stock. Reports of near-uninterrupted insider selling over the past six months — with no open-market purchases — added to the sense that early holders are monetising gains. The stock now trades roughly 50% below its October high, a valuation reset consistent with profit-taking in a name that had become a momentum favourite.
Biotech Risk-Off Adds Pressure
Company-specific selling was amplified by a softer tape for speculative healthcare. The SPDR S&P Biotech ETF (XBI) fell about 1.6% and the iShares Biotechnology ETF (IBB) roughly 1.2%, while Illumina (ILMN) slipped nearly 2%. Small-cap and unprofitable biotech names lagged as Treasury yields stayed elevated and rate expectations hardened, a backdrop that compresses the value investors assign to cash-burning growth stories. The S&P 500 was essentially flat and the Nasdaq-100 down modestly, so the divergence was concentrated in healthcare.
Market Context and Trading Activity
Volume has been well above normal across both sessions. Thursday's 2.5 million shares compared with a three-month average near 1.26 million, and early Friday turnover again ran heavy. The stock opened Friday near $110.50, immediately below Thursday's close, and slid toward $107 as the target cuts circulated. Technically, shares are back in the lower half of Thursday's unusually wide $93.85–$114.93 range and below the pre-earnings close of $122.59, leaving the October peak far overhead. The move was roughly in line with the stock's own volatility: over the past 60 sessions the average absolute daily change has been about 5.2%, and moves of 6% or more have occurred in more than 20 of those sessions.
News Significance Score
The scale runs from 0, meaning no meaningful news and a move that is normal for the stock, to 100, meaning transformative news and an extreme, rare price move. This event scores 27 out of 100. The verified news was moderate rather than dramatic: a quarterly beat, a first positive adjusted EBITDA, and a fiscal 2027 guide that landed slightly above consensus but implied slower growth, followed by several target cuts. Judged against a company valued near $7 billion, that is a re-rating, not a transformation. The price move was barely 1.2 times the typical daily swing, and comparable or larger declines occurred more than 20 times in the last 60 sessions. Modest news plus an unremarkable move produces a low score.
What Comes Next for TWST
The next hard catalyst is fiscal first-quarter 2027 results, expected around February, against guidance of $130–132 million in revenue and both product groups growing above 25%. Management's commentary on converting a swelling AI drug discovery order book into revenue, and any revision to the $100 million assumption embedded in guidance, will matter more than the headline print. Gross margin needs to hold in the 52.5%–53% band and full-year adjusted EBITDA must stay positive to validate the profitability narrative. Investors will also weigh rising capital spending against free cash flow, customer concentration in NGS, the funding appetite of biotech and pharma buyers, and the interest-rate backdrop that has been punishing longer-duration growth equities. Management appears at investor conferences in the coming weeks, offering near-term colour.
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
TWST's Stochastic Oscillator sits in oversold zone for 7 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +12.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where TWST advanced for three days, in 235 of 291 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TWST as a result. In 63 of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 83%.
The Moving Average Convergence Divergence Histogram (MACD) for TWST turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 37 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 84%.
TWST moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TWST crossed bearishly below the 50-day moving average on October 20, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 86%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TWST declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
TWST broke above its upper Bollinger Band on October 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TWST entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 5 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (17.967) is normal, around the industry mean (3.498). P/E Ratio (-54.166) is within average values for comparable stocks, (-1.193). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (9.059). Dividend Yield (0.000) settles around the average of (130.981) among similar stocks. P/S Ratio (20.243) is also within normal values, averaging (440.869).
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. TWST’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 49 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 84 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 98 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TWST’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a developer of proprietary semiconductor-based synthetic DNA manufacturing process
Industry Biotechnology
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