Twilio (NYSE:TWLO) Lifted to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Twilio (NYSE:TWLO) from a sell rating to a hold rating in a research report report published on Friday, January 12th.

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.”

Other research analysts have also issued reports about the company. Northland Securities reiterated a buy rating and issued a $36.00 price objective on shares of Twilio in a research report on Friday, October 13th. BidaskClub upgraded Twilio from a hold rating to a buy rating in a research report on Thursday, October 5th. Robert W. Baird reiterated a buy rating and issued a $39.00 price objective on shares of Twilio in a research report on Wednesday, September 27th. Drexel Hamilton restated a buy rating and issued a $47.00 price target on shares of Twilio in a research report on Friday, September 22nd. Finally, Oppenheimer restated a buy rating and issued a $38.00 price target on shares of Twilio in a research report on Monday, September 18th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of Buy and an average price target of $36.83.

Shares of Twilio (NYSE:TWLO) traded down $0.51 during trading hours on Friday, reaching $25.04. The company had a trading volume of 402,348 shares, compared to its average volume of 1,214,245. The company has a market cap of $2,376.89, a P/E ratio of -39.20 and a beta of 2.62. Twilio has a 1 year low of $22.80 and a 1 year high of $34.95.

Twilio (NYSE:TWLO) last posted its quarterly earnings results on Wednesday, November 8th. The technology company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.20) by $0.12. Twilio had a negative return on equity of 17.55% and a negative net margin of 15.69%. The firm had revenue of $100.54 million during the quarter, compared to analysts’ expectations of $92.50 million. During the same quarter in the prior year, the firm posted ($0.04) EPS. The company’s revenue for the quarter was up 40.6% on a year-over-year basis. sell-side analysts anticipate that Twilio will post -0.75 EPS for the current fiscal year.

In related news, CFO Lee Kirkpatrick sold 7,000 shares of Twilio stock in a transaction dated Tuesday, January 16th. The stock was sold at an average price of $25.89, for a total transaction of $181,230.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Karyn Smith sold 4,213 shares of the business’s stock in a transaction that occurred on Thursday, January 18th. The stock was sold at an average price of $25.54, for a total value of $107,600.02. The disclosure for this sale can be found here. Insiders have sold 40,222 shares of company stock valued at $1,027,788 in the last quarter. 25.03% of the stock is currently owned by corporate insiders.

Several large investors have recently modified their holdings of TWLO. Pacer Advisors Inc. raised its position in Twilio by 12.1% during the second quarter. Pacer Advisors Inc. now owns 5,135 shares of the technology company’s stock valued at $149,000 after purchasing an additional 555 shares in the last quarter. Thompson Davis & CO. Inc. raised its position in Twilio by 36.8% during the third quarter. Thompson Davis & CO. Inc. now owns 6,500 shares of the technology company’s stock valued at $194,000 after purchasing an additional 1,750 shares in the last quarter. New York State Common Retirement Fund raised its position in Twilio by 2.9% during the third quarter. New York State Common Retirement Fund now owns 68,400 shares of the technology company’s stock valued at $2,042,000 after purchasing an additional 1,900 shares in the last quarter. Janney Montgomery Scott LLC increased its holdings in shares of Twilio by 22.0% during the third quarter. Janney Montgomery Scott LLC now owns 13,340 shares of the technology company’s stock worth $398,000 after buying an additional 2,410 shares in the last quarter. Finally, Fortaleza Asset Management Inc. increased its holdings in shares of Twilio by 47.0% during the third quarter. Fortaleza Asset Management Inc. now owns 7,635 shares of the technology company’s stock worth $228,000 after buying an additional 2,440 shares in the last quarter. Institutional investors own 59.90% of the company’s stock.

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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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