Twitter (TWTR) Rating Lowered to Hold at Zacks Investment Research

Twitter (NYSE:TWTR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Twitter reported strong fourth-quarter 2017 results. Shares have also outperformed the industry in the past one year. The company's initiatives to make tweeting easier for people and more expressive are expected to boost user growth rate and engagement levels. Growing adoption of video ad products coupled with Twitter’s focus on live video streaming will bring more ad dollars. Besides, growth in Japan and other Asia Pacific markets is a positive. Moreover, aggressive cost cutting also helped Twitter to achieve long term EBITDA margin target. However, lack of revenue diversification is a major concern for the company. Increasing competition and stringent regulations for social media platforms continue to remain overhangs.”

A number of other research analysts have also recently commented on the company. Vetr upgraded Twitter from a “buy” rating to a “strong-buy” rating and set a $19.82 price objective on the stock in a report on Monday, October 23rd. Aegis upgraded Twitter from a “sell” rating to a “buy” rating and set a $30.00 price objective on the stock in a report on Tuesday, January 16th. Stifel Nicolaus upgraded Twitter from a “sell” rating to a “hold” rating and upped their price objective for the company from $12.00 to $17.00 in a report on Thursday, October 26th. Argus upgraded Twitter from a “hold” rating to a “buy” rating and upped their price objective for the company from $19.71 to $25.00 in a report on Friday, November 3rd. Finally, Citigroup upgraded Twitter from a “sell” rating to a “neutral” rating and upped their price objective for the company from $19.90 to $20.00 in a report on Monday, November 6th. Eight investment analysts have rated the stock with a sell rating, twenty-two have issued a hold rating and seven have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $22.79.

Twitter (NYSE:TWTR) opened at $33.75 on Tuesday. Twitter has a twelve month low of $14.12 and a twelve month high of $35.00. The company has a market capitalization of $25,070.00, a P/E ratio of -225.00, a P/E/G ratio of 13.93 and a beta of 1.14. The company has a debt-to-equity ratio of 0.35, a current ratio of 10.40 and a quick ratio of 10.40.

Twitter (NYSE:TWTR) last released its quarterly earnings data on Thursday, February 8th. The social networking company reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.05. Twitter had a positive return on equity of 0.79% and a negative net margin of 4.42%. The firm had revenue of $731.60 million for the quarter, compared to analysts’ expectations of $686.12 million. During the same period in the prior year, the firm posted $0.11 earnings per share. The firm’s quarterly revenue was up 2.0% on a year-over-year basis. equities analysts anticipate that Twitter will post 0.1 EPS for the current fiscal year.

In related news, General Counsel Vijaya Gadde sold 15,000 shares of the stock in a transaction on Tuesday, December 5th. The stock was sold at an average price of $20.71, for a total value of $310,650.00. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Robert Kaiden sold 6,018 shares of the stock in a transaction on Thursday, February 1st. The shares were sold at an average price of $26.17, for a total value of $157,491.06. The disclosure for this sale can be found here. Insiders sold 2,660,011 shares of company stock worth $58,164,211 in the last three months. 9.18% of the stock is currently owned by corporate insiders.

A number of large investors have recently bought and sold shares of TWTR. Avestar Capital LLC purchased a new position in Twitter in the fourth quarter valued at $103,000. Balentine LLC increased its holdings in Twitter by 86.6% in the third quarter. Balentine LLC now owns 6,822 shares of the social networking company’s stock valued at $115,000 after buying an additional 3,167 shares during the last quarter. Toronto Dominion Bank increased its holdings in Twitter by 21.3% in the second quarter. Toronto Dominion Bank now owns 7,592 shares of the social networking company’s stock valued at $136,000 after buying an additional 1,333 shares during the last quarter. Malaga Cove Capital LLC purchased a new position in Twitter in the third quarter valued at $154,000. Finally, Staley Capital Advisers Inc. purchased a new position in Twitter in the third quarter valued at $173,000. 49.26% of the stock is currently owned by hedge funds and other institutional investors.

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Twitter Company Profile

Twitter, Inc offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser.

Analyst Recommendations for Twitter (NYSE:TWTR)

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