Twitter (TWTR) Downgraded by Zacks Investment Research to Hold

Twitter (NYSE:TWTR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.

According to Zacks, “Twitter reported strong fourth-quarter 2017 results. Shares have also outperformed the industry in the past one year. The company's initiatives to make tweeting easier for people and more expressive are expected to boost user growth rate and engagement levels. Growing adoption of video ad products coupled with Twitter’s focus on live video streaming will bring more ad dollars. Besides, growth in Japan and other Asia Pacific markets is a positive. Moreover, aggressive cost cutting also helped Twitter to achieve long term EBITDA margin target. However, lack of revenue diversification is a major concern for the company. Increasing competition and stringent regulations for social media platforms continue to remain overhangs.”

Several other research firms have also recently weighed in on TWTR. Wells Fargo & Co boosted their price objective on shares of Twitter from $16.00 to $19.00 and gave the company a “market perform” rating in a report on Friday, October 27th. Summit Redstone started coverage on shares of Twitter in a report on Monday, December 18th. They set a “buy” rating and a $26.00 price objective for the company. Stifel Nicolaus raised shares of Twitter from a “sell” rating to a “hold” rating and boosted their price objective for the company from $12.00 to $17.00 in a report on Thursday, October 26th. SunTrust Banks reissued a “hold” rating and set a $18.00 price objective (up from $16.00) on shares of Twitter in a report on Friday, October 27th. They noted that the move was a valuation call. Finally, Vetr cut shares of Twitter from a “buy” rating to a “hold” rating and set a $29.35 price objective for the company. in a report on Monday. Eight research analysts have rated the stock with a sell rating, twenty-two have given a hold rating and seven have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $22.79.

Shares of Twitter (NYSE:TWTR) traded up $2.26 during trading on Tuesday, reaching $33.21. 32,877,901 shares of the company’s stock traded hands, compared to its average volume of 33,269,410. The company has a debt-to-equity ratio of 0.35, a current ratio of 10.40 and a quick ratio of 10.40. The stock has a market capitalization of $23,405.43, a PE ratio of -207.59, a PEG ratio of 13.74 and a beta of 1.14. Twitter has a twelve month low of $14.12 and a twelve month high of $35.00.

Twitter (NYSE:TWTR) last released its quarterly earnings data on Thursday, February 8th. The social networking company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.05. Twitter had a negative net margin of 4.42% and a positive return on equity of 0.79%. The firm had revenue of $731.60 million during the quarter, compared to analysts’ expectations of $686.12 million. During the same period in the previous year, the company earned $0.11 earnings per share. The firm’s quarterly revenue was up 2.0% on a year-over-year basis. research analysts forecast that Twitter will post 0.11 earnings per share for the current fiscal year.

In other Twitter news, Director Evan Clark Williams sold 565,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $20.08, for a total value of $11,345,200.00. Following the completion of the transaction, the director now directly owns 2,441,312 shares in the company, valued at $49,021,544.96. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Robert Kaiden sold 3,930 shares of the company’s stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $20.62, for a total transaction of $81,036.60. The disclosure for this sale can be found here. Insiders have sold 3,225,011 shares of company stock valued at $69,509,411 over the last 90 days. 9.18% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Balentine LLC boosted its position in shares of Twitter by 86.6% in the third quarter. Balentine LLC now owns 6,822 shares of the social networking company’s stock worth $115,000 after purchasing an additional 3,167 shares during the period. Toronto Dominion Bank boosted its position in shares of Twitter by 21.3% in the second quarter. Toronto Dominion Bank now owns 7,592 shares of the social networking company’s stock worth $136,000 after purchasing an additional 1,333 shares during the period. Malaga Cove Capital LLC bought a new position in shares of Twitter in the third quarter worth approximately $154,000. Staley Capital Advisers Inc. bought a new position in shares of Twitter in the third quarter worth approximately $173,000. Finally, Berkshire Asset Management LLC PA bought a new position in shares of Twitter in the third quarter worth approximately $184,000. Institutional investors and hedge funds own 49.26% of the company’s stock.

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About Twitter

Twitter, Inc offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser.

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