Twilio (TWLO) Lifted to Buy at Zacks Investment Research

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Zacks Investment Research upgraded shares of Twilio (NYSE:TWLO) from a hold rating to a buy rating in a report published on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $142.00 price objective on the technology company’s stock.

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 is also aided by the first-time deals with the new ones, courtesy of  Twilio’s firm focus on introducing products and the 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 its dollar-based net expansion rate. Shares have outperformed the industry in the past year. Estimates have been stable ahead of the company's Q1 earnings release. However, heightening competition in the cloud telecommunications market is inducing pricing pressure for the company, which is an overhang on its profitability.”

A number of other research analysts have also recently weighed in on the company. Mitsubishi UFJ Financial Group raised their price target on Twilio from $121.00 to $133.00 in a research report on Friday, April 12th. FBN Securities initiated coverage on Twilio in a research report on Tuesday, April 9th. They issued an outperform rating and a $150.00 price target for the company. Stephens initiated coverage on Twilio in a research report on Monday, April 1st. They set a hold rating and a $110.00 price objective for the company. KeyCorp lifted their price objective on Twilio from $132.00 to $150.00 and gave the stock an overweight rating in a research report on Monday, March 25th. Finally, Deutsche Bank lifted their price objective on Twilio from $130.00 to $150.00 and gave the stock a buy rating in a research report on Friday, March 22nd. Two analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company. The company currently has an average rating of Buy and a consensus price target of $125.55.

Shares of TWLO stock opened at $122.13 on Wednesday. Twilio has a fifty-two week low of $39.59 and a fifty-two week high of $136.00. The firm has a market capitalization of $15.09 billion, a PE ratio of -152.66 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 (NYSE:TWLO) last announced its quarterly earnings results on Tuesday, February 12th. The technology company reported $0.04 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.21. Twilio had a negative return on equity of 21.00% and a negative net margin of 18.76%. The business had revenue of $204.30 million during the quarter, compared to analysts’ expectations of $184.46 million. During the same quarter last year, the business posted ($0.03) earnings per share. The business’s revenue for the quarter was up 77.3% on a year-over-year basis. As a group, sell-side analysts anticipate that Twilio will post -1.08 earnings per share for the current fiscal year.

In other Twilio news, CEO Jeff Lawson sold 20,830 shares of Twilio stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $129.87, for a total value of $2,705,192.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Karyn Smith sold 25,486 shares of Twilio stock in a transaction dated Friday, February 22nd. The shares were sold at an average price of $115.30, for a total value of $2,938,535.80. The disclosure for this sale can be found here. In the last quarter, insiders have sold 100,165 shares of company stock valued at $12,076,547. 19.80% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Adirondack Trust Co. grew its holdings in Twilio by 625.0% in the 4th quarter. Adirondack Trust Co. now owns 348 shares of the technology company’s stock valued at $31,000 after buying an additional 300 shares during the period. TCI Wealth Advisors Inc. grew its holdings in Twilio by 261.0% in the 1st quarter. TCI Wealth Advisors Inc. now owns 361 shares of the technology company’s stock valued at $47,000 after buying an additional 261 shares during the period. Parallel Advisors LLC grew its holdings in Twilio by 300.0% in the 4th quarter. Parallel Advisors LLC now owns 400 shares of the technology company’s stock valued at $35,000 after buying an additional 300 shares during the period. Meeder Asset Management Inc. grew its holdings in Twilio by 647.4% in the 1st quarter. Meeder Asset Management Inc. now owns 426 shares of the technology company’s stock valued at $55,000 after buying an additional 369 shares during the period. Finally, Brasada Capital Management LP purchased a new stake in Twilio in the 4th quarter valued at about $45,000. Institutional investors 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.

See Also: Systematic Risk

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