Twilio (TWLO) Stock Rating Lowered by Zacks Investment Research

Share on StockTwits

Twilio (NYSE:TWLO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports.

According to Zacks, “Twilio is benefiting from a solid product menu and an increasing customer base. The company is not only gaining from a robust expansion of its existing clientele but also owing to first-time deals with the new ones, courtesy of the company’s firm focus on introducing products and its go-to-market sales strategy. Strong growth in the company’s core voice and messaging products is a key driver. Rising adoption of new products is also driving the company’s dollar-based net expansion rate. Moreover, strategic alliances and focus on enhancing international operations are turning out in the company's favor. Its shares have outperformed the industry in the past year. Estimates have been stable ahead of the company's Q4 earnings release. However, growing competition in the cloud telecommunications market is inducing pricing pressure for the company, which is an overhang on its profitability.”

TWLO has been the topic of a number of other research reports. KeyCorp lifted their price objective on Twilio from $114.00 to $132.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 13th. Bank of America reaffirmed a “buy” rating and issued a $130.00 price objective (up previously from $125.00) on shares of Twilio in a research note on Wednesday, February 13th. reaffirmed an “outperform” rating and issued a $125.00 price objective (up previously from $110.00) on shares of Twilio in a research note on Wednesday, February 13th. Piper Jaffray Companies lifted their price objective on Twilio to $135.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 13th. Finally, JMP Securities lifted their price objective on Twilio from $120.00 to $123.00 and gave the stock a “market outperform” rating in a research note on Wednesday, February 13th. Three equities research analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average target price of $121.93.

NYSE:TWLO opened at $123.08 on Tuesday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 6.33 and a current ratio of 6.33. Twilio has a 1 year low of $39.59 and a 1 year high of $136.00. The company has a market capitalization of $15.64 billion, a price-to-earnings ratio of -153.85 and a beta of 1.34.

Twilio (NYSE:TWLO) last released its quarterly earnings data on Tuesday, February 12th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.17) by $0.21. Twilio had a negative return on equity of 21.00% and a negative net margin of 18.76%. The business had revenue of $204.30 million for the quarter, compared to the consensus estimate of $184.46 million. During the same quarter in the previous year, the company posted ($0.03) EPS. The company’s revenue was up 77.3% compared to the same quarter last year. On average, equities analysts expect that Twilio will post -1.08 earnings per share for the current fiscal year.

In related news, CEO Jeff Lawson sold 20,830 shares of the business’s stock in a transaction on Friday, January 18th. The stock was sold at an average price of $104.12, for a total transaction of $2,168,819.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Karyn Smith sold 937 shares of the business’s stock in a transaction on Monday, April 15th. The shares were sold at an average price of $125.50, for a total value of $117,593.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 124,256 shares of company stock valued at $14,585,424. Company insiders own 19.80% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Utah Retirement Systems boosted its holdings in Twilio by 0.8% during the 4th quarter. Utah Retirement Systems now owns 13,419 shares of the technology company’s stock valued at $1,198,000 after acquiring an additional 100 shares during the period. Calamos Wealth Management LLC boosted its holdings in Twilio by 0.3% during the 1st quarter. Calamos Wealth Management LLC now owns 39,327 shares of the technology company’s stock valued at $5,080,000 after acquiring an additional 119 shares during the period. Metropolitan Life Insurance Co. NY boosted its holdings in Twilio by 2.7% during the 4th quarter. Metropolitan Life Insurance Co. NY now owns 5,678 shares of the technology company’s stock valued at $507,000 after acquiring an additional 149 shares during the period. Hollencrest Capital Management boosted its holdings in Twilio by 4.3% during the 4th quarter. Hollencrest Capital Management now owns 3,670 shares of the technology company’s stock valued at $328,000 after acquiring an additional 150 shares during the period. Finally, Piedmont Investment Advisors Inc. boosted its holdings in Twilio by 3.4% during the 4th quarter. Piedmont Investment Advisors Inc. now owns 5,360 shares of the technology company’s stock valued at $479,000 after acquiring an additional 178 shares during the period. Institutional investors own 57.19% of the company’s stock.

About Twilio

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.

Read More: Why is cost of goods sold important?

Get a free copy of the Zacks research report on Twilio (TWLO)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Twilio (NYSE:TWLO)

Receive News & Ratings for Twilio Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Twilio and related companies with MarketBeat.com's FREE daily email newsletter.