Twilio (NYSE:TWLO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
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.”
TWLO has been the subject of several other research reports. Northland Securities set a $36.00 price target on shares of Twilio and gave the stock a “buy” rating in a report on Monday, November 13th. Canaccord Genuity restated a “buy” rating and set a $38.00 price target on shares of Twilio in a report on Wednesday, December 6th. Drexel Hamilton restated a “buy” rating and set a $47.00 price target on shares of Twilio in a report on Monday, December 4th. KeyCorp restated a “hold” rating on shares of Twilio in a report on Wednesday, September 27th. Finally, William Blair restated an “outperform” rating on shares of Twilio in a report on Wednesday, September 27th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $36.83.
Twilio (NYSE:TWLO) last released its quarterly earnings results on Wednesday, November 8th. The technology company reported ($0.08) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.20) by $0.12. Twilio had a negative net margin of 15.69% and a negative return on equity of 17.55%. The firm had revenue of $100.54 million during the quarter, compared to analyst estimates of $92.50 million. During the same quarter last year, the business earned ($0.04) EPS. The company’s revenue was up 40.6% compared to the same quarter last year. analysts predict that Twilio will post -0.75 EPS for the current year.
In other Twilio news, General Counsel Karyn Smith sold 4,213 shares of the business’s stock in a transaction on Thursday, January 18th. The shares were sold at an average price of $25.54, for a total transaction of $107,600.02. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Lee Kirkpatrick sold 10,830 shares of the business’s stock in a transaction on Friday, December 15th. The shares were sold at an average price of $25.28, for a total transaction of $273,782.40. The disclosure for this sale can be found here. Insiders sold a total of 40,222 shares of company stock valued at $1,027,788 in the last quarter. 25.03% of the stock is currently owned by company insiders.
A number of hedge funds have recently made changes to their positions in the business. Thompson Davis & CO. Inc. increased its stake in Twilio by 36.8% during the 3rd quarter. Thompson Davis & CO. Inc. now owns 6,500 shares of the technology company’s stock valued at $194,000 after purchasing an additional 1,750 shares in the last quarter. New York State Common Retirement Fund increased its stake in Twilio by 2.9% during the 3rd quarter. New York State Common Retirement Fund now owns 68,400 shares of the technology company’s stock valued at $2,042,000 after purchasing an additional 1,900 shares in the last quarter. Janney Montgomery Scott LLC increased its stake in Twilio by 22.0% during the 3rd quarter. Janney Montgomery Scott LLC now owns 13,340 shares of the technology company’s stock valued at $398,000 after purchasing an additional 2,410 shares in the last quarter. Fortaleza Asset Management Inc. increased its stake in Twilio by 47.0% during the 3rd quarter. Fortaleza Asset Management Inc. now owns 7,635 shares of the technology company’s stock valued at $228,000 after purchasing an additional 2,440 shares in the last quarter. Finally, Pacer Advisors Inc. increased its stake in Twilio by 56.0% during the 3rd quarter. Pacer Advisors Inc. now owns 8,010 shares of the technology company’s stock valued at $239,000 after purchasing an additional 2,875 shares in the last quarter. Institutional investors and hedge funds own 59.95% of the company’s stock.
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Twilio Company Profile
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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