Exploring Twist Bioscience Corporation (TWST) Investor Profile: Who’s Buying and Why?

You're looking at Twist Bioscience Corporation (TWST) and asking the right question: with the stock down over 40% year-to-date, why are institutional heavyweights still holding on-and in some cases, buying more? The short answer is they are betting on the synthetic biology (SynBio) platform's industrial scale, not just the near-term financials. Honestly, the fiscal year 2025 results show a company that is defintely narrowing its losses, posting a net loss of $(77.7) million, a massive improvement over the prior year. But the real story is the revenue growth, which hit $376.6 million for the year, a 20% jump, with Next-Generation Sequencing (NGS) tools driving 55% of that top line. So, what's the consensus among the biggest owners like ARK Investment Management LLC, which holds over 6.7 million shares, or BlackRock, Inc., with its 6.1 million shares? They see a company trading at a price-to-sales ratio of just 4.2x, well below the US Biotechs industry average of 11.5x, suggesting a deep discount for the growth potential, especially as orders from AI drug discovery customers increased by more than $25 million in FY25. This isn't a growth stock for the faint of heart, but you need to know who's putting up the capital and why they're tolerating the volatility to get a piece of that silicon-based DNA synthesis platform.

Who Invests in Twist Bioscience Corporation (TWST) and Why?

If you're looking at Twist Bioscience Corporation (TWST), you're essentially looking at a stock dominated by large-scale, institutional money. The short answer is that the world's biggest asset managers are buying in because they see a clear path for a disruptive technology to capture a massive, growing market, even if profitability is still a year out.

The institutional ownership of Twist Bioscience Corporation is remarkably high, hovering around 117.49% of shares outstanding as of late 2025, which is common for a growth stock with a relatively small float (the shares available to trade). This tells you that the stock's price movements are largely dictated by the actions of these major funds, not individual investors.

Here's the quick math on who holds the keys:

• Institutional Investors: Approximately 117.49% of shares.
• Retail/Individuals: Around 3.35% of shares.
• Insiders: A small slice, about 1.86%.

Key Investor Types and Their Footprint

The investor base for Twist Bioscience Corporation breaks down into three main camps: passive giants, active growth specialists, and a smaller group of hedge funds and retail traders. The vast majority of shares are held by institutions, which include mutual funds, pension funds, and asset managers.

The top holders are household names in asset management. As of the end of the fiscal year 2025, the largest holders are led by ARK Investment Management LLC, holding about 11.21%, followed closely by Artisan Partners Limited Partnership at 10.69%, and BlackRock, Inc. at 10.30%. The Vanguard Group, Inc. also holds a significant stake, around 9.61%.

To be fair, the presence of BlackRock and Vanguard is often simply due to their vast index funds (passive investing), which must buy the stock because it's in the index. But the substantial positions held by active managers like ARK Investment Management LLC and Artisan Partners Limited Partnership show a conviction in the company's long-term growth narrative.

Investment Motivations: Growth and Disruptive Tech

The primary motivation for buying Twist Bioscience Corporation is a belief in its disruptive technology and its path to profitability. The company's core is a proprietary, silicon-based DNA synthesis platform-a fancy way of saying they can 'write' DNA faster and cheaper than older methods, which is a game changer for synthetic biology (SynBio).

Investors are attracted to three key areas of growth:

• Next Generation Sequencing (NGS) Tools: This segment is the current revenue engine, growing 23% year-over-year to $208.1 million for fiscal year 2025. The tools are essential for high-throughput genetic analysis in diagnostics and research.
• Synthetic Biology (SynBio) Core: This is the long-term potential, serving industries from medicine to agriculture. The technology is seen as foundational for the entire synthetic biology market.
• Path to Profitability: Management has shown operational efficiency, improving the full-year gross margin to 50.7% for fiscal 2025. The company has a clear target to achieve adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) breakeven by the end of fiscal year 2026. This shift from a loss of approximately $(46.9) million in adjusted EBITDA for FY2025 is a critical milestone for growth investors.

The stock is a bet on the future of biology. You're buying into the idea that their platform will become the standard for manufacturing DNA, which is a defintely long-term play.

Investment Strategies: Long-Term Growth vs. Active Trading

The strategies employed by these investors reflect the company's stage: high growth but not yet consistently profitable. This is not a value stock; it's a pure growth story.

Long-Term Holding (Passive and Active Growth): The majority of institutional holders, including Vanguard, BlackRock, and the large positions in ARK's ETFs, employ a long-term holding strategy. They are willing to stomach volatility, like the stock's 42% year-to-date decline seen in late 2025, because they believe the long-term revenue growth-which hit $376.6 million for the full fiscal year 2025-will eventually translate into massive earnings. They are investing in the synthetic DNA revolution.

Short-Term/Event-Driven Trading: The presence of hedge funds, like Point72 Asset Management, L.P., suggests a more active approach. These funds often engage in short-term trading, looking to capitalize on quarterly financial results, like the mixed Q3 2025 results where revenue missed estimates but EPS (Earnings Per Share) beat, or reacting to strategic announcements, such as the expanded collaboration with Element Biosciences. They might also be looking at the high short interest, which was around 16.96% in mid-2025, as a potential short-squeeze opportunity.

For individual investors, the dominant strategy here is often a smaller-scale version of the institutional growth play: buy and hold, focusing on the company's execution against its long-term targets, like its gross margin expansion and the 2026 breakeven goal. If you want to dive deeper into the nuts and bolts of the balance sheet, you should check out Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors.

Institutional Ownership and Major Shareholders of Twist Bioscience Corporation (TWST)

If you're looking at Twist Bioscience Corporation (TWST), the first thing to note is that this stock is overwhelmingly controlled by professional money managers. As of the end of the fiscal third quarter of 2025, institutional ownership sits at an extraordinary level, exceeding 121% of the company's float, which is a massive signal of both conviction and complexity in the market.

This high concentration means the stock's price action is driven almost entirely by the trading decisions of a few hundred large funds, not retail investors. The perception here is that high institutional ownership indicates good value, as these are the firms with the deepest research budgets, but it also means you should expect higher volatility.

The top holders list is a who's who of both passive index trackers and high-conviction active managers. You see the massive passive funds alongside the growth-focused names that bet big on disruptive technology, which tells you a lot about the company's dual nature as a foundational biotech platform and a speculative growth play.

• Passive funds like BlackRock, Inc. and The Vanguard Group, Inc. own shares primarily for index tracking.
• Active managers like ARK Investment Management LLC and Artisan Partners Limited Partnership are making a direct, high-conviction bet on the synthetic biology platform.

Here's a quick look at the top institutional holders and their positions as of September 30, 2025, with a total value of holdings across all institutions reaching approximately $2.06 billion.

Recent Shifts: Who's Buying and Who's Selling?

The near-term trading activity, especially in November 2025, shows a clear divergence of opinion, which is common in high-growth, unprofitable biotech names. You're seeing some funds take profits or reduce risk, while others are aggressively accumulating shares, suggesting a strong belief in the company's long-term synthetic DNA platform.

For example, EdgePoint Investment Group Inc. significantly increased their stake by +1.70 million shares in November 2025, a massive +71.10% increase in their position. Plus, Soleus Capital Management L.P. made an even more dramatic move, boosting their stake by +1.51 million shares, an eye-popping +426.59% jump.

But on the flip side, some major hedge funds are pulling back. Point72 Asset Management, L.P. cut their position by -1.63 million shares, a -75.44% reduction, and Citadel Advisors LLC almost entirely exited, selling -1.39 million shares for a -92.34% change. This is the classic tug-of-war between growth bulls and value/risk-off bears.

The key takeaway here is that the active managers are making big, conviction-driven trades. You defintely need to watch these movements closely, as they can trigger sharp price swings.

The Impact of Institutional Concentration and Strategy

The fact that institutional ownership is reported above 100% of the float-around 121.91%-is a critical piece of information. This isn't physically possible, but it happens when the same shares are counted twice: once by the original owner (the institution that lent the shares) and again by the buyer of the borrowed shares. Here's the quick math: it signals a very high level of short interest (short selling), which is a bet against the stock.

This dynamic creates a volatile environment. On one hand, the high short interest means there's a constant pool of potential buyers (the short sellers who must eventually cover their positions). If Twist Bioscience Corporation (TWST) releases unexpectedly good news-say, a major new partnership or a faster path to profitability-it could trigger a short squeeze, sending the stock price skyrocketing as short sellers rush to buy.

On the other hand, the presence of major, long-term investors like ARK Investment Management LLC, which has a stated conviction in disruptive technologies, provides a floor for the stock. ARK's consistent buying, like the 268,210 shares purchased in February 2025, signals a strategic belief in the company's core technology and its Mission Statement, Vision, & Core Values of Twist Bioscience Corporation (TWST).

These large institutional players also exert significant influence on corporate governance. Their sheer size means management listens to them, which can lead to better oversight and a focus on long-term shareholder value, though it can also pressure management for short-term results. Your action item should be to track the next 13F filings from the largest buyers like EdgePoint, Artisan, and ARK to see if their accumulation trend continues into Q4 2025.

Key Investors and Their Impact on Twist Bioscience Corporation (TWST)

You want to know who is betting big on Twist Bioscience Corporation (TWST) and why, especially when the stock has been volatile. The short answer is that the investor base is a classic split: high-conviction, active growth funds are loading up on shares, while the largest passive index funds provide a massive, stable floor. Their moves are a clear signal of long-term belief in the core technology, even as the company manages near-term profitability issues.

The institutional ownership in Twist Bioscience Corporation is significant, holding over 95.1 million total shares as of late 2025. This high institutional presence, which can represent over 157% of the free float, means the stock's daily movements are heavily influenced by the trading activity of a few large firms. This isn't a retail-driven stock; it's a battleground for institutional conviction.

The Active Conviction Buyers: Betting on Disruptive DNA

The most influential investors are the active managers, particularly those focused on disruptive innovation. They see the synthetic DNA platform-the ability to 'write' DNA on a silicon chip-as a foundational technology for the future of medicine and data storage. They are buying for the long-term potential, often ignoring quarterly noise.

ARK Investment Management LLC is the prime example here. They are consistently buying, signaling a high-conviction bet on the synthetic biology theme. For instance, even after the company reported a Q4 fiscal 2025 EPS miss of ($0.45), ARK acquired an additional 184,505 shares valued at $5,516,699 on November 14, 2025. This is a classic 'buy the dip' strategy, focusing on the company's robust full-year revenue growth of 20% to $376.6 million for fiscal 2025, not the temporary cost pressures.

• ARK Investment Management LLC: Largest holder with 6.73 million shares (11.21% ownership) as of Q3 2025, valuing their stake at $189.29 million.
• Artisan Partners Limited Partnership: Another top active manager, holding 6.41 million shares (10.62%), demonstrating a strong belief in the growth story.

Passive Giants: The Stable Foundation

Then you have the passive giants. These firms, like BlackRock, Inc. and The Vanguard Group, Inc., hold massive stakes not because of a specific analyst's conviction, but because Twist Bioscience Corporation is a component of major indices (like the Russell 2000 or various biotech ETFs). Their influence is less about boardroom pressure and more about providing a stable, foundational demand for the stock.

BlackRock, Inc. and The Vanguard Group, Inc. collectively own over 11.9 million shares. They are defintely not going to sell unless the company is removed from an index. This passive ownership acts as a massive anchor, reducing the overall volatility that might otherwise plague a high-growth, unprofitable biotech stock. These large, index-driven positions stabilize the share count. You can find more details on how these financial metrics drive investment decisions in Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors.

Recent Investor Moves and the Near-Term Signal

The most recent 2025 activity shows a clear accumulation trend, especially from the institutional side. This buying pressure continued even as the company navigated a challenging period where a softening biotech market slowed order growth, a risk highlighted by investors like Conestoga Capital Advisors in Q3 2025. The focus is clearly shifting to the operational leverage they are achieving.

Here's the quick math on recent accumulation, which shows conviction despite the stock's volatility:

The key takeaway is that the smart money is looking past the current negative net margin of 23.51% and the Q4 2025 EPS miss. They are focused on the gross margin improvement to 50.7% for the full fiscal year 2025, which shows the core business is scaling efficiently. They're buying the long-term vision of a synthetic biology industrial leader, not the current income statement.

Actionable Insight: What to Watch Next

For you, the investor, the action is simple: track the active funds. The passive funds are a constant. Watch ARK's daily trades, as their buying or selling of large blocks can move the stock on any given day. More importantly, watch for any 13D filings (Schedule 13D), which would signal an activist investor is taking a stake with the intent to force a strategic change, like a sale of the Biopharma segment or a change in management focus. So far, the filings are 13G, indicating passive intent, but a shift would be a major catalyst.

Market Impact and Investor Sentiment

You're looking at Twist Bioscience Corporation (TWST) and wondering if the institutional money is still buying the long-term story, and the short answer is: yes, but with a clear focus on the path to profitability. Major shareholders maintain a fundamentally positive view, driven by the company's proprietary silicon-based DNA Synthesis Platform, but the stock's recent performance shows investors are punishing any delay in achieving bottom-line results.

The overall sentiment from major institutional investors remains a Moderate Buy consensus, based on recent analyst ratings. This optimism is grounded in the company's strong top-line performance, which saw total fiscal year 2025 revenue hit a record $376.6 million, a 20% increase over fiscal 2024. But, you can't ignore the stock's price action; it's down about 42% year-to-date as of late November 2025, signaling that macro headwinds and a slower-than-hoped march to profitability are creating a significant disconnect between the company's operational growth and its market valuation.

Here's the quick math on the operational improvements that drive the long-term bullish case:

• Full-year 2025 Gross Margin improved to 50.7%, up from 42.6% in fiscal 2024.
• Net Loss for fiscal 2025 narrowed significantly to $(77.7) million, a substantial improvement from $(208.7) million in the prior year.
• Orders from AI-enabled drug discovery customers increased by more than $25 million in fiscal 2025, a clear growth tailwind.

Who's Buying and Why: The Major Shareholders

The institutional ownership structure of Twist Bioscience Corporation shows strong conviction from key players in the biotech investment space. As of the end of the fiscal year, institutional shareholders owned the vast majority of the company, and their moves reveal a strategic accumulation, especially from active managers.

The largest institutional holders as of September 30, 2025, are a who's-who of major asset managers and specialized funds. For instance, ARK held 6.73 million shares, representing 11.21% ownership, while BlackRock held 6.18 million shares, accounting for 10.30%. These positions are essentially a vote of confidence in the long-term disruptive potential of synthetic biology (SynBio) and the company's core platform technology. For a deep dive into the company's fundamentals, you should check out Breaking Down Twist Bioscience Corporation (TWST) Financial Health: Key Insights for Investors.

More importantly, recent 13F filings show some aggressive buying activity from hedge funds, which are often more sensitive to near-term catalysts and valuation discounts. For example, Millennium Management LLC increased its position by a massive +151.5% in the most recent reporting period, and EdgePoint Investment Group Inc. boosted its stake by +71.1%. This suggests that while the stock price has been under pressure, many sophisticated investors see the current price as a defintely attractive entry point.

Market Reaction to Earnings and Ownership Shifts

The stock market's reaction to the Q4 fiscal 2025 earnings announcement on November 14, 2025, was a perfect illustration of a growth stock's current dilemma: revenue is great, but cash flow is king. Despite reporting record quarterly revenue of $99 million, the stock dropped 11.71% in pre-market trading. The catalyst for the sell-off was the larger-than-expected quarterly loss per share (EPS) of -$0.45, which missed the forecasted loss of -$0.41.

This negative reaction highlights a key investor risk: the market is currently less forgiving of high-growth, unprofitable companies. The slight earnings miss, combined with a temporary slowdown in the Next-Generation Sequencing (NGS) segment due to a major customer's transition from research to commercial use, caused a sharp, immediate pullback. The good news is that management is guiding for adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a proxy for operational cash flow) breakeven by the end of fiscal 2026, which is the clear action investors are waiting for.

Analyst Outlook: The Impact of Key Investors

Analysts are generally looking past the near-term volatility and focusing on the long-term potential, largely validated by the continued commitment of major institutional holders. The average 12-month price target from Wall Street analysts is $47.50, which suggests a significant upside of 66.32% from recent trading levels.

The conviction from analysts is tied directly to the company's success in emerging, high-margin areas, especially those attracting the attention of large, long-term investors like ARK and BlackRock. The Biopharma segment, in particular, is reaccelerating, fueled by AI-enabled drug discovery customers. This shift towards higher-value, data-driven services is a major reason why analysts are maintaining their 'Buy' ratings despite the stock's recent weakness. What this estimate hides, however, is the execution risk in the NGS segment, which needs to rebound to the 20% growth level by the end of fiscal 2026 to meet management's guidance.