Twilio (NYSE:TWLO) Stock Rating Lowered by Zacks Investment Research

Twilio (NYSE:TWLO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports. They presently have a $97.00 target price on the technology company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 4.04% from the company’s current price.

According to Zacks, “Twilio delivered better-than-expected third-quarter 2019 results. The company is benefiting from increasing clientele and the Sendgrid buyout. Growing adoption of Twilio Flex is also a tailwind. The company is not only gaining traction from a solid expansion of its existing clientele but is also aided by the first-time deals with the new customers, courtesy of its firm focus on introducing products and the go-to-market sales strategy. However, the bearish guidance provided by management for the full year as well as the fourth quarter is a concern. Robust political traffic coupled with the ramp of a large international customer is likely to induce a tough year-over-year comparison. Intensifying competition in the cloud telecommunications market is inducing pricing pressure for the company, which is an overhang on its profitability.”

TWLO has been the subject of several other reports. ValuEngine raised Twilio from a “hold” rating to a “buy” rating in a research note on Friday, November 1st. DA Davidson reduced their price objective on Twilio to $125.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. Needham & Company LLC reduced their price objective on Twilio to $125.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. KeyCorp raised their price objective on Twilio from $156.00 to $158.00 and gave the stock an “overweight” rating in a research note on Thursday, August 1st. Finally, Rosenblatt Securities reduced their price objective on Twilio from $150.00 to $140.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $137.00.

Shares of TWLO traded up $2.17 during trading hours on Wednesday, hitting $93.23. 2,919,295 shares of the company were exchanged, compared to its average volume of 4,140,348. The company has a market capitalization of $12.41 billion, a PE ratio of -116.54 and a beta of 1.14. The company has a debt-to-equity ratio of 0.14, a current ratio of 9.57 and a quick ratio of 9.57. The firm has a fifty day simple moving average of $106.77 and a 200-day simple moving average of $127.25. Twilio has a one year low of $71.56 and a one year high of $151.00.

Twilio (NYSE:TWLO) last released its quarterly earnings data on Wednesday, October 30th. The technology company reported $0.03 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.02. The business had revenue of $295.00 million during the quarter, compared to analyst estimates of $287.96 million. Twilio had a negative return on equity of 6.02% and a negative net margin of 26.20%. The company’s revenue was up 74.6% compared to the same quarter last year. During the same period last year, the company posted $0.07 EPS. Sell-side analysts expect that Twilio will post -1.5 EPS for the current year.

In other news, Director Richard L. Dalzell sold 500 shares of the stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $124.11, for a total value of $62,055.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Karyn Smith sold 16,678 shares of the stock in a transaction on Monday, October 21st. The shares were sold at an average price of $106.15, for a total value of $1,770,369.70. The disclosure for this sale can be found here. Insiders sold 168,830 shares of company stock valued at $19,561,905 in the last 90 days. Corporate insiders own 10.85% of the company’s stock.

Large investors have recently made changes to their positions in the stock. Jennison Associates LLC raised its holdings in shares of Twilio by 264.4% during the second quarter. Jennison Associates LLC now owns 3,482,690 shares of the technology company’s stock worth $474,865,000 after acquiring an additional 2,526,830 shares in the last quarter. NEXT Financial Group Inc raised its holdings in shares of Twilio by 335.5% during the second quarter. NEXT Financial Group Inc now owns 5,923 shares of the technology company’s stock worth $808,000 after acquiring an additional 4,563 shares in the last quarter. Biondo Investment Advisors LLC raised its holdings in shares of Twilio by 0.6% during the second quarter. Biondo Investment Advisors LLC now owns 22,795 shares of the technology company’s stock worth $3,108,000 after acquiring an additional 135 shares in the last quarter. Mn Services Vermogensbeheer B.V. purchased a new stake in shares of Twilio during the second quarter worth $7,949,000. Finally, LPL Financial LLC raised its holdings in shares of Twilio by 17.1% during the second quarter. LPL Financial LLC now owns 46,795 shares of the technology company’s stock worth $6,380,000 after acquiring an additional 6,819 shares in the last quarter. Institutional investors and hedge funds own 74.81% of the company’s stock.

Twilio Company Profile

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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