Twilio (TWLO) Downgraded by Zacks Investment Research

Twilio (NYSE:TWLO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, 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 is also aided by the first-time deals with the new ones, courtesy of  Twilio’s firm focus on introducing products and the 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 its dollar-based net expansion rate. Shares have outperformed the industry in the past year. Estimates have been stable ahead of the company's Q1 earnings release. However, heightening competition in the cloud telecommunications market is inducing pricing pressure for the company, which is an overhang on its profitability.”

A number of other analysts have also recently commented on the company. Mitsubishi UFJ Financial Group boosted their price objective on Twilio from $121.00 to $133.00 in a research report on Friday, April 12th. FBN Securities assumed coverage on Twilio in a research report on Tuesday, April 9th. They issued an “outperform” rating and a $150.00 price objective for the company. Stephens assumed coverage on Twilio in a research report on Monday, April 1st. They issued a “hold” rating and a $110.00 price objective for the company. KeyCorp boosted their price objective on Twilio from $132.00 to $150.00 and gave the company an “overweight” rating in a research report on Monday, March 25th. Finally, Deutsche Bank boosted their price objective on Twilio from $130.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, March 22nd. Three research analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $125.55.

Shares of Twilio stock traded up $5.47 on Monday, reaching $127.60. The company’s stock had a trading volume of 74,247 shares, compared to its average volume of 3,311,635. The stock has a market capitalization of $15.09 billion, a PE ratio of -159.61 and a beta of 1.34. Twilio has a 52-week low of $39.59 and a 52-week high of $136.00. The company has a debt-to-equity ratio of 0.99, a current ratio of 6.33 and a quick ratio of 6.33.

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

In other Twilio news, Director Erika Rottenberg sold 808 shares of the business’s stock in a transaction on Tuesday, February 5th. The stock was sold at an average price of $113.82, for a total transaction of $91,966.56. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO George Hu sold 10,000 shares of the business’s stock in a transaction on Friday, February 1st. The stock was sold at an average price of $111.50, for a total value of $1,115,000.00. The disclosure for this sale can be found here. Insiders have sold 100,165 shares of company stock valued at $12,076,547 over the last quarter. 19.80% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Adirondack Trust Co. lifted its stake in shares of Twilio by 625.0% in the 4th quarter. Adirondack Trust Co. now owns 348 shares of the technology company’s stock valued at $31,000 after purchasing an additional 300 shares during the last quarter. Parallel Advisors LLC lifted its stake in shares of Twilio by 300.0% in the 4th quarter. Parallel Advisors LLC now owns 400 shares of the technology company’s stock valued at $35,000 after purchasing an additional 300 shares during the last quarter. Brasada Capital Management LP acquired a new position in shares of Twilio in the 4th quarter valued at $45,000. TCI Wealth Advisors Inc. lifted its stake in shares of Twilio by 261.0% in the 1st quarter. TCI Wealth Advisors Inc. now owns 361 shares of the technology company’s stock valued at $47,000 after purchasing an additional 261 shares during the last quarter. Finally, Signet Investment Advisory Group Inc. acquired a new position in shares of Twilio in the 4th quarter valued at $53,000. 57.19% of the stock is currently owned by institutional investors.

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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