Zacks Investment Research Downgrades Twilio (TWLO) to Hold

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Zacks Investment Research downgraded shares of Twilio (NYSE:TWLO) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning, Zacks.com reports.

According to Zacks, “Twilio is benefiting from a solid product menu and an increasing customer base. The company is not only gaining from a robust expansion of its existing clientele but also owing to first-time deals with the new ones, courtesy of the company’s firm focus on introducing products and its go-to-market sales strategy. Strong growth in the company’s core voice and messaging products is a key driver. Rising adoption of new products is also driving the company’s dollar-based net expansion rate. Moreover, strategic alliances and focus on enhancing international operations are turning out in the company's favor. Its shares have outperformed the industry in the past year. Estimates have been stable ahead of the company's Q4 earnings release. However, growing competition in the cloud telecommunications market is inducing pricing pressure for the company, which is an overhang on its profitability.”

Other equities analysts have also recently issued research reports about the company. Mitsubishi UFJ Financial Group raised their price objective on Twilio from $121.00 to $133.00 in a report on Friday, April 12th. Deutsche Bank raised their price objective on Twilio from $110.00 to $130.00 and gave the company a buy rating in a report on Wednesday, February 13th. DA Davidson raised their price objective on Twilio from $99.00 to $118.00 and gave the company a buy rating in a report on Wednesday, February 13th. Bank of America restated a buy rating and issued a $130.00 price objective (up previously from $125.00) on shares of Twilio in a report on Wednesday, February 13th. Finally, Canaccord Genuity raised their price objective on Twilio from $90.00 to $125.00 and gave the company a buy rating in a report on Wednesday, February 13th. Four analysts have rated the stock with a hold rating and twenty have given a buy rating to the stock. The stock currently has an average rating of Buy and an average target price of $121.72.

Shares of NYSE TWLO opened at $126.56 on Tuesday. The stock has a market capitalization of $15.72 billion, a PE ratio of -158.20 and a beta of 1.34. The company has a debt-to-equity ratio of 0.99, a current ratio of 6.33 and a quick ratio of 6.33. Twilio has a fifty-two week low of $39.59 and a fifty-two week high of $136.00.

Twilio (NYSE:TWLO) last announced its quarterly earnings data on Tuesday, February 12th. The technology company reported $0.04 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.17) by $0.21. The company had revenue of $204.30 million during the quarter, compared to analysts’ expectations of $184.46 million. Twilio had a negative return on equity of 21.00% and a negative net margin of 18.76%. Twilio’s revenue for the quarter was up 77.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.03) EPS. As a group, sell-side analysts forecast that Twilio will post -1.08 EPS for the current fiscal year.

In other news, CEO Jeff Lawson sold 20,830 shares of Twilio stock in a transaction that occurred on Friday, January 18th. The shares were sold at an average price of $104.12, for a total value of $2,168,819.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel Karyn Smith sold 3,261 shares of Twilio stock in a transaction that occurred on Friday, January 18th. The shares were sold at an average price of $104.28, for a total transaction of $340,057.08. The disclosure for this sale can be found here. Over the last quarter, insiders sold 123,319 shares of company stock valued at $14,467,831. 19.80% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in TWLO. Prudential Financial Inc. acquired a new position in Twilio during the third quarter valued at approximately $288,000. Dimensional Fund Advisors LP raised its position in Twilio by 25.4% during the third quarter. Dimensional Fund Advisors LP now owns 106,956 shares of the technology company’s stock valued at $9,227,000 after purchasing an additional 21,688 shares in the last quarter. LPL Financial LLC raised its position in Twilio by 2.5% during the third quarter. LPL Financial LLC now owns 31,121 shares of the technology company’s stock valued at $2,685,000 after purchasing an additional 771 shares in the last quarter. Vident Investment Advisory LLC acquired a new position in Twilio during the third quarter valued at approximately $908,000. Finally, Point72 Asset Management L.P. acquired a new position in Twilio during the third quarter valued at approximately $7,334,000. Institutional investors and hedge funds own 57.19% 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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