Twilio (NYSE:TWLO) Stock Falls 6.7% – Here’s Why

Shares of Twilio Inc. (NYSE:TWLO) dropped 6.7% on Friday. The stock traded as low as $258.63 and last traded at $255.0150. Approximately 189,283 shares were traded during trading, a decline of 93% from the average daily volume of 2,626,272 shares. The stock had previously closed at $273.40.

Wall Street Analyst Weigh In

Several research firms recently weighed in on TWLO. Oppenheimer raised their price objective on Twilio from $235.00 to $275.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. KeyCorp lifted their target price on Twilio from $200.00 to $250.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Needham & Company LLC boosted their target price on Twilio from $250.00 to $280.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. HSBC cut shares of Twilio from a “hold” rating to a “reduce” rating and set a $211.00 target price for the company. in a report on Thursday, September 24th. Finally, Weiss Ratings raised shares of Twilio from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, September 29th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Twilio has a consensus rating of “Moderate Buy” and an average price target of $267.78.

Twilio Trading Down 11.9%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.62 and a current ratio of 4.62. The firm has a market cap of $37.00 billion, a price-to-earnings ratio of 33.90, a PEG ratio of 5.56 and a beta of 1.35. The business has a fifty day simple moving average of $253.65 and a 200-day simple moving average of $207.87.

Twilio (NYSE:TWLO) last announced its quarterly earnings results on Thursday, August 6th. The technology company reported $1.47 EPS for the quarter, beating analysts’ consensus estimates of $1.32 by $0.15. The firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.43 billion. Twilio had a return on equity of 5.09% and a net margin of 20.61%. The business’s revenue for the quarter was up 22.0% on a year-over-year basis. During the same period last year, the firm posted $1.19 earnings per share. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. As a group, equities analysts forecast that Twilio Inc. will post 3.12 earnings per share for the current fiscal year.

Insider Activity at Twilio

In related news, CFO Aidan Viggiano sold 9,084 shares of the firm’s stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $294.65, for a total value of $2,676,600.60. Following the completion of the transaction, the chief financial officer owned 99,246 shares in the company, valued at $29,242,833.90. This trade represents a 8.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 500,000 shares of Twilio stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $247.08, for a total transaction of $123,540,000.00. Following the sale, the director owned 120,000 shares in the company, valued at approximately $29,649,600. This represents a 80.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 538,818 shares of company stock worth $134,833,645 in the last quarter. 0.21% of the stock is owned by insiders.

Hedge Funds Weigh In On Twilio

Several large investors have recently modified their holdings of TWLO. Quantinno Capital Management LP lifted its holdings in shares of Twilio by 137.9% during the first quarter. Quantinno Capital Management LP now owns 648,882 shares of the technology company’s stock worth $81,642,000 after purchasing an additional 376,142 shares during the period. Pictet Asset Management Holding SA grew its stake in shares of Twilio by 17.6% in the first quarter. Pictet Asset Management Holding SA now owns 2,331,471 shares of the technology company’s stock worth $293,237,000 after purchasing an additional 349,131 shares during the last quarter. Royal Bank of Canada increased its holdings in Twilio by 10.8% in the first quarter. Royal Bank of Canada now owns 3,261,235 shares of the technology company’s stock valued at $410,330,000 after purchasing an additional 316,858 shares during the period. National Pension Service increased its holdings in Twilio by 1,177.6% in the second quarter. National Pension Service now owns 261,307 shares of the technology company’s stock valued at $53,915,000 after purchasing an additional 240,854 shares during the period. Finally, Allspring Global Investments Holdings LLC increased its holdings in Twilio by 89.8% in the first quarter. Allspring Global Investments Holdings LLC now owns 483,611 shares of the technology company’s stock valued at $63,092,000 after purchasing an additional 228,840 shares during the period. Institutional investors own 84.27% of the company’s stock.

Twilio Company Profile

Twilio Inc is a communications technology company that provides a cloud-based platform for businesses to engage with customers through digital channels. Its software and application programming interfaces (APIs) support communications capabilities such as voice calling, messaging, video, email, authentication and contact-center interactions.

The company’s offerings include programmable communications services, customer data and engagement tools, and contact-center solutions. Twilio also provides email services through SendGrid and customer data platform capabilities through Segment, which it acquired in 2020.