Twilio (NYSE:TWLO) Shares Gap Down Following Weak Earnings

Twilio Inc. (NYSE:TWLO) shares gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $147.28, but opened at $131.86. Twilio shares last traded at $123.30, with a volume of 6,087,390 shares traded.

The technology company reported $0.22 EPS for the quarter, missing the consensus estimate of $0.99 by ($0.77). Twilio had a positive return on equity of 0.85% and a negative net margin of 10.65%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on TWLO. JPMorgan Chase & Co. increased their target price on shares of Twilio from $83.00 to $130.00 and gave the stock an “overweight” rating in a report on Friday, January 24th. Oppenheimer increased their price objective on shares of Twilio from $90.00 to $160.00 and gave the stock an “outperform” rating in a research note on Friday, January 24th. Tigress Financial lifted their target price on Twilio from $85.00 to $135.00 and gave the company a “buy” rating in a research note on Wednesday, November 27th. Piper Sandler reiterated an “overweight” rating and set a $142.00 price target (up from $94.00) on shares of Twilio in a research report on Friday, January 24th. Finally, The Goldman Sachs Group raised Twilio from a “neutral” rating to a “buy” rating and raised their price target for the stock from $77.00 to $185.00 in a report on Monday, January 27th. Two analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $121.75.

Insider Buying and Selling at Twilio

In other news, insider Dana Wagner sold 4,629 shares of the firm’s stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $110.00, for a total transaction of $509,190.00. Following the completion of the transaction, the insider now owns 125,576 shares in the company, valued at approximately $13,813,360. This trade represents a 3.56 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Khozema Shipchandler sold 10,834 shares of Twilio stock in a transaction that occurred on Monday, January 6th. The stock was sold at an average price of $113.58, for a total transaction of $1,230,525.72. Following the completion of the transaction, the chief executive officer now directly owns 244,971 shares in the company, valued at $27,823,806.18. This represents a 4.24 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 22,015 shares of company stock valued at $2,483,695. 4.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Twilio

Institutional investors and hedge funds have recently modified their holdings of the stock. FMR LLC raised its position in shares of Twilio by 0.8% during the third quarter. FMR LLC now owns 9,206,488 shares of the technology company’s stock worth $600,447,000 after purchasing an additional 77,436 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Twilio by 718.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,262,765 shares of the technology company’s stock worth $352,640,000 after purchasing an additional 2,864,235 shares in the last quarter. Pacer Advisors Inc. raised its holdings in Twilio by 18.3% during the 3rd quarter. Pacer Advisors Inc. now owns 2,867,623 shares of the technology company’s stock worth $187,026,000 after buying an additional 444,295 shares during the period. Geode Capital Management LLC raised its holdings in Twilio by 1.3% during the 3rd quarter. Geode Capital Management LLC now owns 2,724,406 shares of the technology company’s stock worth $177,622,000 after buying an additional 33,824 shares during the period. Finally, Norges Bank purchased a new stake in Twilio during the fourth quarter valued at about $222,146,000. Institutional investors and hedge funds own 84.27% of the company’s stock.

Twilio Stock Performance

The firm’s fifty day simple moving average is $120.96 and its 200 day simple moving average is $89.74. The company has a market capitalization of $18.95 billion, a price-to-earnings ratio of -47.83, a PEG ratio of 3.60 and a beta of 1.43. The company has a debt-to-equity ratio of 0.12, a current ratio of 5.06 and a quick ratio of 5.06.

About Twilio

Twilio Inc, together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication.