Twitter (TWTR) Downgraded by Zacks Investment Research

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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 Saturday.

According to Zacks, “Twitter is benefitting from strong growth in international market and video advertisements. The company is focusing on boosting user growth rate and engagement levels by taking various measures like making tweeting easier for people and more expressive. Growing adoption of video ad products like Video Website Cards & Video App Cards is a positive. Twitter’s focus on live video streaming is also bringing more ad dollars.  Shares have also outperformed the industry on a year-to-date basis. However, lack of revenue diversification is a major concern for Twitter. Moreover, growing competition for ad dollars from players like Facebook and Google is a major headwind. Besides, increasing investments on product development and costs related to international expansion will remain an overhang on profitability.”

Several other analysts also recently weighed in on the stock. Stifel Nicolaus lifted their price target on shares of Twitter from $26.00 to $27.00 and gave the company a “hold” rating in a research note on Thursday, April 26th. Vetr raised shares of Twitter from a “buy” rating to a “strong-buy” rating and set a $35.33 price target for the company in a research note on Monday, March 26th. Raymond James raised shares of Twitter from an “underperform” rating to a “market perform” rating in a research note on Wednesday, April 25th. UBS Group lifted their price target on shares of Twitter from $36.00 to $52.00 and gave the company a “buy” rating in a research note on Friday, June 15th. Finally, Deutsche Bank lifted their price target on shares of Twitter to $32.00 and gave the company a “hold” rating in a research note on Wednesday, May 2nd. They noted that the move was a valuation call. Five analysts have rated the stock with a sell rating, twenty-one have given a hold rating, eleven have issued a buy rating and two have assigned a strong buy rating to the stock. Twitter has a consensus rating of “Hold” and an average price target of $28.15.

Twitter traded down $1.12, hitting $43.67, during trading on Friday, according to Marketbeat. The stock had a trading volume of 24,376,461 shares, compared to its average volume of 41,089,212. The company has a debt-to-equity ratio of 0.33, a current ratio of 10.23 and a quick ratio of 10.23. The company has a market cap of $33.71 billion, a P/E ratio of 727.83, a PEG ratio of 5.50 and a beta of 0.90. Twitter has a one year low of $15.67 and a one year high of $47.79.

Twitter (NYSE:TWTR) last announced its quarterly earnings data on Wednesday, April 25th. The social networking company reported $0.16 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.01 by $0.15. The business had revenue of $665.00 million during the quarter, compared to the consensus estimate of $607.56 million. Twitter had a net margin of 0.57% and a return on equity of 2.81%. The firm’s quarterly revenue was up 21.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.07 earnings per share. equities research analysts expect that Twitter will post 0.35 EPS for the current year.

In other news, Director Evan Clark Williams sold 682,242 shares of Twitter stock in a transaction on Tuesday, June 26th. The shares were sold at an average price of $44.51, for a total transaction of $30,366,591.42. Following the completion of the sale, the director now directly owns 1,838,600 shares in the company, valued at $81,836,086. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Robert Kaiden sold 1,421 shares of Twitter stock in a transaction on Monday, April 2nd. The stock was sold at an average price of $28.12, for a total transaction of $39,958.52. The disclosure for this sale can be found here. Insiders sold 3,330,984 shares of company stock worth $121,560,626 over the last ninety days. Corporate insiders own 10.79% of the company’s stock.

Large investors have recently bought and sold shares of the company. CNB Bank acquired a new stake in shares of Twitter during the fourth quarter worth $101,000. Avestar Capital LLC acquired a new position in Twitter during the fourth quarter valued at $103,000. Fortis Advisors LLC acquired a new position in Twitter during the first quarter valued at $103,000. Centaurus Financial Inc. acquired a new position in Twitter during the first quarter valued at $104,000. Finally, We Are One Seven LLC acquired a new position in Twitter during the fourth quarter valued at $128,000. Institutional investors and hedge funds own 59.57% of the company’s stock.

About Twitter

Twitter, Inc operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others.

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