Twilio (NYSE:TWLO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday, February 19th.
According to Zacks, “Twilio reported strong top-line performance for the fourth quarter of 2017 mainly driven by remarkable year-over-year growth in active customer account which was a result of the company’s continued focus on introducing products as well as its go-to-market sales strategy. However, we are concerned about its declining gross margin which has worsened in the last two quarters, touching its lowest level in the last three years. The company’s gross margin has 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 subject of several other research reports. BidaskClub downgraded shares of Twilio from a “buy” rating to a “hold” rating in a research note on Saturday, November 4th. Northland Securities set a $36.00 target price on shares of Twilio and gave the stock a “buy” rating in a research note on Monday, November 13th. KeyCorp reiterated a “hold” rating on shares of Twilio in a research note on Tuesday, December 5th. Drexel Hamilton reiterated a “buy” rating and set a $47.00 target price on shares of Twilio in a research note on Monday, December 4th. Finally, JPMorgan Chase & Co. increased their target price on shares of Twilio from $40.00 to $42.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 14th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Twilio presently has an average rating of “Buy” and a consensus target price of $37.66.
Twilio (NYSE:TWLO) last issued its quarterly earnings data on Tuesday, February 13th. The technology company reported ($0.17) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.18) by $0.01. The company had revenue of $115.24 million for the quarter, compared to analyst estimates of $103.51 million. Twilio had a negative return on equity of 19.52% and a negative net margin of 15.97%. equities research analysts forecast that Twilio will post -0.69 EPS for the current fiscal year.
In other Twilio news, CFO Lee Kirkpatrick sold 10,830 shares of the stock in a transaction dated Friday, December 15th. The shares were 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 is available through the SEC website. Also, General Counsel Karyn Smith sold 20,000 shares of the stock in a transaction dated Monday, March 5th. The shares were sold at an average price of $38.07, for a total transaction of $761,400.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 128,842 shares of company stock valued at $4,020,701. 25.03% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently modified their holdings of TWLO. Technology Crossover Management IX Ltd. purchased a new position in shares of Twilio during the 4th quarter worth approximately $47,599,000. Raging Capital Management LLC purchased a new position in shares of Twilio during the 4th quarter worth approximately $22,420,000. Hillman Co. purchased a new position in shares of Twilio during the 3rd quarter worth approximately $28,288,000. Salesforce Com Inc. purchased a new position in shares of Twilio during the 4th quarter worth approximately $20,969,000. Finally, State Street Corp increased its stake in shares of Twilio by 293.5% during the 2nd quarter. State Street Corp now owns 1,087,607 shares of the technology company’s stock worth $31,666,000 after purchasing an additional 811,204 shares in the last quarter. 61.43% of the stock is owned by institutional investors and hedge funds.
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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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