Zacks Investment Research Lowers Twilio Inc. (NYSE:TWLO) to Hold
Twilio Inc. (NYSE:TWLO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “Twilio recently reported strong results for second-quarter 2017, wherein the top line came ahead of our expectations, while the bottom line matches the same. Also, the company witnessed year-over-year improvement on both the counts. The recently reported robust quarterly results clearly indicate that the company has been able to mitigate the loss of revenues from Uber. 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. We opine that proliferation in cloud and mobile penetration across the globe will continue to fuel Twilio’s customer growth over the long run. Nonetheless, intensifying competition in the communications market and growing prevalence of in-app push notifications are major concerns. Notably, the stock has underperformed the industry in the last one year.”
A number of other equities research analysts have also recently commented on the stock. Canaccord Genuity reissued a “buy” rating and set a $33.00 target price on shares of Twilio in a research report on Wednesday, May 24th. Summit Redstone decreased their target price on shares of Twilio from $36.00 to $28.00 and set a “buy” rating for the company in a research report on Wednesday, May 3rd. Summit Research decreased their target price on shares of Twilio from $36.00 to $28.00 and set a “buy” rating for the company in a research report on Thursday, May 4th. Drexel Hamilton reissued a “buy” rating and set a $50.00 target price on shares of Twilio in a research report on Tuesday, May 2nd. Finally, Vetr cut shares of Twilio from a “strong-buy” rating to a “buy” rating and set a $36.20 target price for the company. in a research report on Thursday, April 27th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the stock. Twilio currently has a consensus rating of “Buy” and a consensus target price of $37.25.
Shares of Twilio (NYSE TWLO) traded up 0.03% during trading on Friday, hitting $30.29. 1,280,059 shares of the company’s stock were exchanged. Twilio has a one year low of $22.80 and a one year high of $70.96. The firm has a 50-day moving average price of $29.86 and a 200-day moving average price of $29.12. The stock’s market cap is $2.75 billion.
Twilio (NYSE:TWLO) last announced its quarterly earnings results on Monday, August 7th. The technology company reported ($0.20) earnings per share for the quarter, hitting the consensus estimate of ($0.20). Twilio had a negative net margin of 13.42% and a negative return on equity of 15.99%. The firm had revenue of $95.90 million during the quarter, compared to analysts’ expectations of $86.28 million. During the same quarter in the prior year, the company earned ($0.08) EPS. The company’s revenue was up 48.7% compared to the same quarter last year. Equities research analysts expect that Twilio will post ($0.23) EPS for the current fiscal year.
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In other Twilio news, General Counsel Karyn Smith sold 5,213 shares of the company’s stock in a transaction that occurred on Thursday, May 18th. The shares were sold at an average price of $24.59, for a total transaction of $128,187.67. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Lee Kirkpatrick sold 16,000 shares of the company’s stock in a transaction that occurred on Monday, July 17th. The shares were sold at an average price of $29.86, for a total transaction of $477,760.00. The disclosure for this sale can be found here. Insiders have sold a total of 45,870 shares of company stock worth $1,296,550 in the last 90 days.
Several hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp raised its stake in Twilio by 26.8% in the second quarter. Bank of New York Mellon Corp now owns 3,854,787 shares of the technology company’s stock worth $112,213,000 after buying an additional 815,890 shares during the last quarter. Franklin Resources Inc. raised its stake in Twilio by 17.5% in the second quarter. Franklin Resources Inc. now owns 1,332,581 shares of the technology company’s stock worth $38,792,000 after buying an additional 198,157 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD raised its stake in Twilio by 487.4% in the second quarter. Sumitomo Mitsui Asset Management Company LTD now owns 1,066,806 shares of the technology company’s stock worth $31,054,000 after buying an additional 885,206 shares during the last quarter. Frontier Capital Management Co. LLC acquired a new stake in Twilio during the second quarter worth $16,213,000. Finally, Pacific Heights Asset Management LLC acquired a new stake in Twilio during the second quarter worth $7,860,000. Hedge funds and other institutional investors own 73.97% of the company’s stock.
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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