Why is Twist Bioscience stock plunging today?

Twist Bioscience's stock experienced a significant drop of 16.1% in trading, reaching $171.96 after briefly touching a 52-week high of $219.71. This decline followed the news of ARK Invest's ongoing sale of the synthetic biology company for 21 consecutive days, totaling $18 million worth of shares. The reduction in buying pressure was further exacerbated by insider sales, including those from the Chief Operating Officer, Director, and CEO.

Despite a moderate buy consensus rating from analysts and substantial year-to-date gains of 495%, the stock's valuation was deemed overvalued by 42.9%. The broader market remained unaffected as major indices like the S&P 500, Dow Jones, and Nasdaq continued to climb. The combination of ARK's persistent selling, insider disposals, and the stock's valuation concerns led to a significant mean-reversion selloff in Twist Bioscience.