Twilio (TWLO) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Twilio (NYSE:TWLO) from a hold rating to a buy rating in a report published on Wednesday, Zacks.com reports. Zacks Investment Research currently has $142.00 price target on the technology company’s stock.
According to Zacks, “Twilio is benefiting from a solid product menu and an increasing customer base. The company is not only gaining from a robust expansion of its existing clientele but is also aided by the first-time deals with the new ones, courtesy of Twilio’s firm focus on introducing products and the go-to-market sales strategy. Strong growth in the company’s core voice and messaging products is a key driver. Rising adoption of new products is also driving its dollar-based net expansion rate. Shares have outperformed the industry in the past year. Estimates have been stable ahead of the company's Q1 earnings release. However, heightening competition in the cloud telecommunications market is inducing pricing pressure for the company, which is an overhang on its profitability.”
Several other equities research analysts also recently issued reports on the company. Argus raised their price target on Twilio to $125.00 and gave the company a buy rating in a research report on Thursday, February 14th. Guggenheim initiated coverage on Twilio in a research report on Monday, March 11th. They issued a buy rating and a $140.00 price target on the stock. KeyCorp reaffirmed an overweight rating and issued a $114.00 price target (up from $103.00) on shares of Twilio in a research report on Tuesday, January 8th. Stephens began coverage on Twilio in a research report on Monday, April 1st. They set a hold rating and a $110.00 target price on the stock. Finally, Morgan Stanley began coverage on Twilio in a research report on Friday, March 15th. They set an equal weight rating and a $130.00 target price on the stock. Three research analysts have rated the stock with a hold rating and twenty-one have issued a buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus price target of $121.93.
Twilio (NYSE:TWLO) last issued its quarterly earnings results on Tuesday, February 12th. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.17) by $0.21. The company had revenue of $204.30 million for the quarter, compared to the consensus estimate of $184.46 million. Twilio had a negative return on equity of 21.00% and a negative net margin of 18.76%. The firm’s revenue was up 77.3% compared to the same quarter last year. During the same period last year, the business posted ($0.03) earnings per share. On average, sell-side analysts predict that Twilio will post -1.08 earnings per share for the current year.
In other Twilio news, General Counsel Karyn Smith sold 24,487 shares of the firm’s stock in a transaction dated Wednesday, March 20th. The shares were sold at an average price of $129.72, for a total transaction of $3,176,453.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Jeff Lawson sold 20,830 shares of the firm’s stock in a transaction dated Friday, January 18th. The stock was sold at an average price of $104.12, for a total transaction of $2,168,819.60. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 124,256 shares of company stock valued at $14,585,424. Corporate insiders own 19.80% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc lifted its stake in Twilio by 10.5% during the third quarter. Vanguard Group Inc now owns 6,480,321 shares of the technology company’s stock worth $559,122,000 after purchasing an additional 613,596 shares during the period. Vanguard Group Inc. raised its stake in shares of Twilio by 10.5% in the third quarter. Vanguard Group Inc. now owns 6,480,321 shares of the technology company’s stock valued at $559,122,000 after acquiring an additional 613,596 shares during the last quarter. BlackRock Inc. raised its stake in shares of Twilio by 2.2% in the fourth quarter. BlackRock Inc. now owns 3,921,779 shares of the technology company’s stock valued at $350,216,000 after acquiring an additional 85,812 shares during the last quarter. Whale Rock Capital Management LLC raised its stake in shares of Twilio by 16.3% in the fourth quarter. Whale Rock Capital Management LLC now owns 2,461,782 shares of the technology company’s stock valued at $219,837,000 after acquiring an additional 345,694 shares during the last quarter. Finally, Millennium Management LLC raised its stake in shares of Twilio by 68.1% in the fourth quarter. Millennium Management LLC now owns 1,083,357 shares of the technology company’s stock valued at $96,744,000 after acquiring an additional 439,063 shares during the last quarter. Hedge funds and other institutional investors own 57.19% of the company’s stock.
Twilio Inc provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The company's programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications.
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