Zacks Investment Research cut shares of Twilio (NYSE:TWLO) from a hold rating to a sell rating in a research note released on Wednesday, January 31st.
According to Zacks, “Twilio offers cloud-based software that helps developers make and receive phone calls, text messages and video chats. Estimates for the stock have remained unchanged, of late. The company’s key initiatives, which include product innovation, global expansion and acquisitions, are helping it in gaining customers, which bodes well for long-term growth. However, we are concerned about its declining gross margins which worsened during the last reported quarter, touching its lowest level in the last three years. The company’s gross margins have been negatively impacted by shift in international traffic mix and reduced revenue contribution from Uber. Going ahead, intensifying competition in the communications market and growing prevalence of in-app push notifications are other major headwinds. Notably, the stock has underperformed the broader market in the last one year.”
Other equities research analysts have also issued reports about the company. Northland Securities reaffirmed a buy rating and set a $36.00 target price on shares of Twilio in a research report on Friday, October 13th. Drexel Hamilton reaffirmed a buy rating and set a $47.00 target price on shares of Twilio in a research report on Thursday, December 28th. Canaccord Genuity reaffirmed a buy rating and set a $38.00 target price on shares of Twilio in a research report on Wednesday, December 6th. Robert W. Baird reaffirmed a buy rating and set a $37.00 target price on shares of Twilio in a research report on Friday, November 10th. Finally, Oppenheimer reaffirmed a buy rating and set a $38.00 target price on shares of Twilio in a research report on Tuesday, January 2nd. One investment analyst has rated the stock with a sell rating, four have given a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus target price of $36.75.
In other Twilio news, CFO Lee Kirkpatrick sold 7,000 shares of the firm’s stock in a transaction dated Tuesday, January 16th. The stock was sold at an average price of $25.89, for a total value of $181,230.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Karyn Smith sold 4,213 shares of the firm’s stock in a transaction dated Thursday, January 18th. The stock was sold at an average price of $25.54, for a total value of $107,600.02. The disclosure for this sale can be found here. Insiders have sold a total of 33,222 shares of company stock valued at $850,128 in the last quarter. 25.03% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the business. Delpha Capital Management LLC bought a new position in Twilio in the 4th quarter worth about $101,000. Cerebellum GP LLC bought a new position in Twilio in the 4th quarter worth about $117,000. SeaCrest Wealth Management LLC bought a new position in Twilio in the 4th quarter worth about $123,000. Ameritas Investment Partners Inc. bought a new position in Twilio in the 2nd quarter worth about $159,000. Finally, Public Employees Retirement Association of Colorado bought a new position in Twilio in the 4th quarter worth about $159,000. Institutional investors and hedge funds own 59.99% of the company’s stock.
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Twilio Company Profile
Twilio Inc offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs).
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