Zacks Investment Research upgraded shares of Twilio (NYSE:TWLO) from a hold rating to a buy rating in a report published on Friday. Zacks Investment Research currently has $83.00 target price on the technology company’s stock.
According to Zacks, “Twilio is benefitting from remarkable growth in active customer account. The company’s key initiatives, which include acquisitions and go-to-market sales strategy, are helping it in gaining customers, which bodes well for long-term growth. Moreover, it is making strategic alliances, as well as has employed more employees outside the U.S. office to enhance international operations. These efforts have paid off well for the company. Furthermore, Twilio’s consistent efforts toward developing innovative use case products will continue to boost its revenues over the long run. Notably, shares have outperformed the industry on a year-to-date basis. However, we are concerned about its declining gross margin, which has been negatively impacted by shift in international traffic mix and reduced revenue contribution from Uber.”
TWLO has been the topic of several other research reports. Monness Crespi & Hardt lifted their target price on Twilio from $85.00 to $108.00 and gave the company a buy rating in a research note on Wednesday, September 12th. JMP Securities lifted their target price on Twilio from $76.00 to $86.00 and gave the company an outperform rating in a research note on Tuesday, September 4th. DA Davidson started coverage on Twilio in a research note on Tuesday, October 2nd. They set a buy rating and a $99.00 target price on the stock. Mitsubishi UFJ Financial Group lifted their target price on Twilio to $82.00 and gave the company an overweight rating in a research note on Tuesday, August 14th. Finally, Bank of America lifted their target price on Twilio from $63.00 to $75.00 and gave the company a buy rating in a research note on Tuesday, August 7th. Two research analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average price target of $76.55.
Twilio (NYSE:TWLO) last issued its quarterly earnings results on Monday, August 6th. The technology company reported $0.03 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.06) by $0.09. The firm had revenue of $147.80 million for the quarter, compared to analysts’ expectations of $130.39 million. Twilio had a negative return on equity of 21.41% and a negative net margin of 18.29%. Twilio’s revenue was up 54.1% on a year-over-year basis. During the same quarter last year, the business posted ($0.05) EPS. On average, research analysts predict that Twilio will post -0.78 earnings per share for the current year.
In other news, CEO Jeff Lawson sold 20,830 shares of Twilio stock in a transaction dated Tuesday, September 18th. The stock was sold at an average price of $85.72, for a total transaction of $1,785,547.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO George Hu sold 5,000 shares of Twilio stock in a transaction dated Tuesday, July 17th. The shares were sold at an average price of $63.03, for a total value of $315,150.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 204,261 shares of company stock valued at $15,545,973. 19.80% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of TWLO. Whale Rock Capital Management LLC acquired a new stake in Twilio in the 2nd quarter worth approximately $64,266,000. Millennium Management LLC lifted its holdings in Twilio by 117.5% in the 2nd quarter. Millennium Management LLC now owns 883,901 shares of the technology company’s stock worth $49,516,000 after purchasing an additional 477,552 shares during the last quarter. Harvest Capital Strategies LLC acquired a new stake in Twilio in the 1st quarter worth approximately $17,181,000. Lord Abbett & CO. LLC acquired a new stake in Twilio in the 1st quarter worth approximately $16,992,000. Finally, Wells Fargo & Company MN lifted its holdings in Twilio by 122.9% in the 2nd quarter. Wells Fargo & Company MN now owns 670,664 shares of the technology company’s stock worth $37,571,000 after purchasing an additional 369,791 shares during the last quarter. Hedge funds and other institutional investors own 57.90% of the company’s stock.
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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