Twilio (NYSE:TWLO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Saturday.
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 industry in the last one year.”
TWLO has been the topic of several other research reports. Northland Securities set a $36.00 price objective on shares of Twilio and gave the stock a “buy” rating in a research note on Monday, November 13th. Canaccord Genuity restated a “buy” rating and issued a $38.00 price objective on shares of Twilio in a research note on Wednesday, December 6th. Drexel Hamilton restated a “buy” rating and issued a $47.00 price objective on shares of Twilio in a research note on Monday, December 4th. KeyCorp restated a “hold” rating on shares of Twilio in a research note on Tuesday, December 5th. Finally, Oppenheimer restated a “buy” rating and issued a $38.00 price objective on shares of Twilio in a research note on Tuesday, January 2nd. One research analyst has rated the stock with a sell rating, four have given a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $36.61.
Twilio (NYSE:TWLO) last announced its quarterly earnings results on Wednesday, November 8th. The technology company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.20) by $0.12. The company had revenue of $100.54 million for the quarter, compared to the consensus estimate of $92.50 million. Twilio had a negative return on equity of 17.55% and a negative net margin of 15.69%. The company’s revenue for the quarter was up 40.6% compared to the same quarter last year. During the same quarter last year, the company posted ($0.04) earnings per share. analysts expect that Twilio will post -0.75 earnings per share for the current year.
In related news, CFO Lee Kirkpatrick sold 10,830 shares of the firm’s stock in a transaction on Friday, December 15th. The stock was sold at an average price of $25.28, for a total value of $273,782.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, General Counsel Karyn Smith sold 5,213 shares of the firm’s stock in a transaction on Monday, December 18th. The stock was sold at an average price of $25.50, for a total value of $132,931.50. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 40,222 shares of company stock valued at $1,027,788. 25.03% of the stock is owned by company insiders.
A number of hedge funds have recently modified their holdings of the stock. FMR LLC lifted its position in Twilio by 19.8% in the second quarter. FMR LLC now owns 9,259,375 shares of the technology company’s stock worth $269,541,000 after purchasing an additional 1,528,512 shares during the period. Vanguard Group Inc. lifted its position in Twilio by 21.1% in the second quarter. Vanguard Group Inc. now owns 4,212,606 shares of the technology company’s stock worth $122,629,000 after purchasing an additional 734,659 shares during the period. Bank of New York Mellon Corp lifted its position in Twilio by 6.3% in the third quarter. Bank of New York Mellon Corp now owns 4,096,296 shares of the technology company’s stock worth $122,275,000 after purchasing an additional 241,509 shares during the period. BlackRock Inc. lifted its position in Twilio by 6.2% in the fourth quarter. BlackRock Inc. now owns 4,091,535 shares of the technology company’s stock worth $96,561,000 after purchasing an additional 239,782 shares during the period. Finally, Coatue Management LLC lifted its holdings in shares of Twilio by 329.4% during the second quarter. Coatue Management LLC now owns 1,857,746 shares of the technology company’s stock valued at $54,079,000 after acquiring an additional 1,425,085 shares during the period. 59.90% of the stock is owned by hedge funds and other institutional investors.
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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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