Share on StockTwits

Twitter (NYSE:TWTR) was upgraded by equities researchers at Atlantic Securities from an “underweight” rating to a “neutral” rating in a research report issued on Thursday, reports. The firm currently has a $35.00 price objective on the stock. Atlantic Securities’ target price indicates a potential upside of 6.54% from the company’s current price.

The analysts wrote, “We continue to have some concerns regarding the company’s longer term growth potential, but improving engagement trends, continued strong revenue growth and a more reasonable valuation leaves the risk reward more balanced at current levels in our view.” In terms of engagement, Cordwell notes that, although his concerns have not been “fully alleviated,” Q1 has provided increasing sequential net adds, as well as flat timeline views per MAU compared to Q4. Cordwell noted a topline revenue growth of 119 percent year-over-year in Q1 which is a three-point increase from Q4. Although Cordwell and the Street expect this to “decelerate” moving forward, Cordwell acknowledged the possibility for acceleration, based on a continuing ease in comps, improving user engagement and a “significantly undermonetised” international user base. To conclude, Cordwell noted that Twitter is now trading more in line with peers on a fiscal year 2014 revenue multiple-to-growth basis after opening at a “significant premium.”

Shares of Twitter (NYSE:TWTR) opened at 32.85 on Thursday. Twitter has a 1-year low of $29.51 and a 1-year high of $74.73. The stock’s 50-day moving average is $41.11 and its 200-day moving average is $50.72. The company’s market cap is $18.731 billion. Twitter also was the target of a large growth in short interest in April. As of April 30th, there was short interest totalling 50,098,350 shares, a growth of 7.2% from the April 15th total of 46,744,485 shares. Currently, 19.5% of the company’s stock are sold short. Based on an average daily trading volume, of 15,312,281 shares, the short-interest ratio is presently 3.3 days.

Twitter (NYSE:TWTR) last announced its earnings results on Tuesday, April 29th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by $0.19. The company had revenue of $250.00 million for the quarter, compared to the consensus estimate of $240.90 million. During the same quarter in the previous year, the company posted ($0.08) earnings per share. The company’s revenue for the quarter was up 119.7% on a year-over-year basis. On average, analysts predict that Twitter will post $0.04 earnings per share for the current fiscal year.

A number of other firms have also recently commented on TWTR. Analysts at Pivotal Research upgraded shares of Twitter from a “sell” rating to a “hold” rating in a research note on Wednesday. They now have a $34.00 price target on the stock. Separately, analysts at Nomura cut their price target on shares of Twitter from $47.00 to $43.00 in a research note on Wednesday. Finally, analysts at SunTrust upgraded shares of Twitter from a “neutral” rating to a “buy” rating in a research note on Monday. They now have a $45.00 price target on the stock, down previously from $50.00. Six equities research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and ten have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $45.78.

In other Twitter news, VP Luca Baratta sold 9,285 shares of Twitter stock on the open market in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $31.44, for a total transaction of $291,920.40. Following the sale, the vice president now directly owns 331,904 shares of the company’s stock, valued at approximately $10,435,062. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.

Twitter, Inc (NYSE:TWTR), is a global platform for public self-expression and conversation in real time.

The Fly On The Wall

Receive News & Ratings for Twitter Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Twitter Inc and related companies with Analyst Ratings Network's FREE daily email newsletter.