Zacks Investment Research cut shares of Twilio (NYSE:TWLO) from a buy rating to a hold rating in a report published on Friday. The brokerage currently has $131.00 price target on the technology company’s stock.
According to Zacks, “Twilio is benefiting from its continued focus on introducing products and its go-to-market sales strategy. Solid growth in the company’s core voice and messaging products is a key driver. Rapid adoption of application-to-person communication is helping it expand its total addressable market. Robust expansion within the existing customer base and also first-time deals with new clients make us optimistic about the company’s growth prospects. Moreover, strategic alliances and focus on enhancing international operations is paying off well for the company. Estimates have been stable ahead of the company's Q4 earnings release. The company has positive record of earnings surprises in recent quarters. Shares have outperformed the industry in the past year. However, Twilio's contracting gross margin due to unfavorable international traffic mix and reduced revenue contribution from Uber is a major concern for the company.”
TWLO has been the topic of a number of other research reports. JPMorgan Chase & Co. increased their price target on Twilio to $84.00 and gave the company an overweight rating in a research note on Wednesday, November 7th. Piper Jaffray Companies reissued an overweight rating and issued a $95.00 price target on shares of Twilio in a research note on Wednesday, November 7th. Argus increased their price target on Twilio from $90.00 to $110.00 and gave the company a buy rating in a research note on Thursday, November 8th. Bank of America increased their price target on Twilio from $87.00 to $92.00 and gave the company a buy rating in a research note on Wednesday, November 7th. Finally, Stephens assumed coverage on Twilio in a research note on Thursday, January 3rd. They issued an equal weight rating and a $110.00 price target on the stock. Three research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $92.87.
In related news, Director Erika Rottenberg sold 808 shares of the company’s stock in a transaction on Tuesday, February 5th. The shares were sold at an average price of $113.82, for a total value of $91,966.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Jeff Lawson sold 20,830 shares of the company’s stock in a transaction on Monday, November 19th. The shares were sold at an average price of $81.48, for a total transaction of $1,697,228.40. The disclosure for this sale can be found here. In the last 90 days, insiders sold 171,507 shares of company stock valued at $15,691,579. 19.80% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Adirondack Trust Co. increased its holdings in Twilio by 625.0% during the 4th quarter. Adirondack Trust Co. now owns 348 shares of the technology company’s stock worth $31,000 after purchasing an additional 300 shares in the last quarter. Parallel Advisors LLC increased its holdings in Twilio by 300.0% during the 4th quarter. Parallel Advisors LLC now owns 400 shares of the technology company’s stock worth $35,000 after purchasing an additional 300 shares in the last quarter. Brasada Capital Management LP bought a new position in Twilio during the 4th quarter worth about $45,000. Signet Investment Advisory Group Inc. bought a new position in Twilio during the 4th quarter worth about $53,000. Finally, Focused Wealth Management Inc bought a new position in Twilio during the 4th quarter worth about $63,000. Institutional investors and hedge funds own 59.84% 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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