Twilio (NYSE:TWLO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Friday.

According to Zacks, “Twilio offers cloud-based software that helps developers make and receive phone calls, text messages and video chats. Estimates for the stock have remained unchanged, of late. The company’s key initiatives, which include product innovation, global expansion and acquisitions, are helping it in gaining customers, which bodes well for long-term growth. However, we are concerned about its declining gross margins which worsened during the last reported quarter, touching its lowest level in the last three years. The company’s gross margins have been negatively impacted by shift in international traffic mix and reduced revenue contribution from Uber. Going ahead, intensifying competition in the communications market and growing prevalence of in-app push notifications are other major headwinds. Notably, the stock has underperformed the broader market in the last one year.”

Several other brokerages have also weighed in on TWLO. BidaskClub lowered Twilio from a “buy” rating to a “hold” rating in a research report on Saturday, November 4th. Oppenheimer reaffirmed a “buy” rating and issued a $38.00 target price on shares of Twilio in a research report on Monday, September 18th. Northland Securities set a $36.00 target price on Twilio and gave the stock a “buy” rating in a research report on Monday, November 13th. KeyCorp reaffirmed a “hold” rating on shares of Twilio in a research report on Tuesday, December 5th. Finally, Drexel Hamilton reaffirmed a “buy” rating and issued a $47.00 target price on shares of Twilio in a research report on Monday, December 4th. One analyst has rated the stock with a sell rating, four have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average target price of $36.83.

Twilio (NYSE:TWLO) traded up $0.13 during trading hours on Friday, reaching $26.16. The company had a trading volume of 906,122 shares, compared to its average volume of 1,315,056. The firm has a market capitalization of $2,430.00 and a price-to-earnings ratio of -35.84. Twilio has a 52-week low of $22.80 and a 52-week high of $34.95.

Twilio (NYSE:TWLO) last posted its quarterly earnings results on Wednesday, November 8th. The technology company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.20) by $0.12. The firm had revenue of $100.54 million for the quarter, compared to analyst estimates of $92.50 million. Twilio had a negative return on equity of 17.55% and a negative net margin of 15.69%. Twilio’s quarterly revenue was up 40.6% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.04) earnings per share. sell-side analysts predict that Twilio will post -0.75 EPS for the current year.

In other news, General Counsel Karyn Smith sold 5,213 shares of the stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $25.50, for a total transaction of $132,931.50. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Lee Kirkpatrick sold 10,000 shares of the stock in a transaction dated Monday, October 16th. The shares were sold at an average price of $32.17, for a total value of $321,700.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 44,348 shares of company stock worth $1,233,298. 25.03% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of TWLO. Great West Life Assurance Co. Can increased its holdings in shares of Twilio by 204.0% during the 2nd quarter. Great West Life Assurance Co. Can now owns 7,297 shares of the technology company’s stock valued at $212,000 after acquiring an additional 4,897 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its stake in Twilio by 207.7% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 171,317 shares of the technology company’s stock valued at $4,988,000 after purchasing an additional 115,635 shares during the period. Rhumbline Advisers boosted its stake in Twilio by 273.8% during the 2nd quarter. Rhumbline Advisers now owns 69,415 shares of the technology company’s stock valued at $2,021,000 after purchasing an additional 50,847 shares during the period. Legal & General Group Plc boosted its stake in Twilio by 2,933.5% during the 2nd quarter. Legal & General Group Plc now owns 15,289 shares of the technology company’s stock valued at $444,000 after purchasing an additional 14,785 shares during the period. Finally, State Board of Administration of Florida Retirement System bought a new stake in Twilio during the 2nd quarter valued at approximately $1,221,000. 59.84% of the stock is currently owned by institutional investors and hedge funds.

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About Twilio

Twilio Inc offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs).

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