Zacks Investment Research upgraded shares of Twilio (NYSE:TWLO) from a sell rating to a hold rating in a research note published 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.”

TWLO has been the topic of a number of other research reports. Northland Securities set a $36.00 price objective on Twilio and gave the stock a buy rating in a research note on Monday, November 13th. Canaccord Genuity reissued a buy rating and set a $38.00 price objective on shares of Twilio in a research note on Wednesday, December 6th. Drexel Hamilton reissued a buy rating and set a $47.00 price objective on shares of Twilio in a research note on Monday, December 4th. KeyCorp reissued a hold rating on shares of Twilio in a research note on Wednesday, September 27th. Finally, William Blair reissued an outperform rating on shares of Twilio in a research note on Wednesday, September 27th. One analyst has rated the stock with a sell rating, four have given a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. Twilio currently has an average rating of Buy and a consensus target price of $36.83.

Twilio (NYSE TWLO) traded up $0.13 during midday trading on Friday, reaching $26.16. The company’s stock had a trading volume of 906,000 shares, compared to its average volume of 1,680,000. The firm has a market capitalization of $2,430.00 and a price-to-earnings ratio of -35.84. Twilio has a one year low of $22.80 and a one year high of $34.95.

Twilio (NYSE:TWLO) last released its quarterly earnings data on Wednesday, November 8th. The technology company reported ($0.08) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.20) by $0.12. The company 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%. The firm’s revenue for the quarter was up 40.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.04) earnings per share. research analysts forecast that Twilio will post -0.75 EPS for the current year.

In other news, CFO Lee Kirkpatrick sold 10,000 shares of the company’s stock in a transaction on Monday, October 16th. The stock was sold at an average price of $32.17, for a total value of $321,700.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, General Counsel Karyn Smith sold 5,381 shares of the company’s stock in a transaction on Wednesday, October 18th. The shares were sold at an average price of $31.48, for a total value of $169,393.88. The disclosure for this sale can be found here. In the last ninety days, insiders sold 44,348 shares of company stock worth $1,233,298. Corporate insiders own 25.03% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. FMR LLC lifted its stake in Twilio by 19.8% during the 2nd quarter. FMR LLC now owns 9,259,375 shares of the technology company’s stock worth $269,541,000 after acquiring an additional 1,528,512 shares in the last quarter. Vanguard Group Inc. lifted its stake in Twilio by 21.1% during the 2nd quarter. Vanguard Group Inc. now owns 4,212,606 shares of the technology company’s stock worth $122,629,000 after acquiring an additional 734,659 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in Twilio by 6.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 4,096,296 shares of the technology company’s stock worth $122,275,000 after acquiring an additional 241,509 shares in the last quarter. Coatue Management LLC lifted its stake in Twilio by 329.4% during the 2nd quarter. Coatue Management LLC now owns 1,857,746 shares of the technology company’s stock worth $54,079,000 after acquiring an additional 1,425,085 shares in the last quarter. Finally, Foxhaven Asset Management LP lifted its stake in Twilio by 1,068.4% during the 2nd quarter. Foxhaven Asset Management LP now owns 1,399,696 shares of the technology company’s stock worth $40,745,000 after acquiring an additional 1,279,896 shares in the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

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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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