Twilio (NYSE:TWLO) Shares Gap Down After Earnings Miss

Shares of Twilio Inc. (NYSE:TWLO) gapped down prior to trading on Friday following a weaker than expected 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 earnings per share for the quarter, missing analysts’ consensus estimates of $0.99 by ($0.77). Twilio had a negative net margin of 10.65% and a positive return on equity of 0.85%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on TWLO shares. Oppenheimer raised their price target on shares of Twilio from $90.00 to $160.00 and gave the stock an “outperform” rating in a report on Friday, January 24th. Scotiabank lifted their target price on shares of Twilio from $90.00 to $160.00 and gave the company a “sector outperform” rating in a research note on Friday, January 24th. Royal Bank of Canada restated an “underperform” rating and set a $50.00 price target on shares of Twilio in a report on Tuesday, January 21st. Wells Fargo & Company increased their price objective on Twilio from $140.00 to $155.00 and gave the stock an “overweight” rating in a report on Friday, January 24th. Finally, Jefferies Financial Group boosted their target price on Twilio from $105.00 to $145.00 and gave the company a “hold” rating in a research note on Friday. 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 issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $121.75.

Insider Transactions at Twilio

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

Institutional Trading of Twilio

Large investors have recently made changes to their positions in the company. CWM LLC grew its stake in Twilio by 45.0% in the third quarter. CWM LLC now owns 20,569 shares of the technology company’s stock valued at $1,342,000 after purchasing an additional 6,387 shares in the last quarter. Livforsakringsbolaget Skandia Omsesidigt increased its stake in Twilio by 450.0% during the 3rd quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 1,100 shares of the technology company’s stock worth $72,000 after acquiring an additional 900 shares during the period. Creative Planning raised its position in shares of Twilio by 15.4% in the 3rd quarter. Creative Planning now owns 32,451 shares of the technology company’s stock valued at $2,116,000 after buying an additional 4,322 shares in the last quarter. Probity Advisors Inc. bought a new stake in Twilio during the third quarter worth $234,000. Finally, Raymond James & Associates lifted its position in shares of Twilio by 235.4% during the 3rd quarter. Raymond James & Associates now owns 77,386 shares of the technology company’s stock worth $5,047,000 after buying an additional 54,310 shares during the last quarter. Institutional investors own 84.27% of the company’s stock.

Twilio Trading Down 16.1 %

The stock has a market cap of $18.95 billion, a P/E ratio of -47.83, a PEG ratio of 3.60 and a beta of 1.43. The company has a quick ratio of 5.06, a current ratio of 5.06 and a debt-to-equity ratio of 0.12. The business’s 50 day simple moving average is $120.96 and its two-hundred day simple moving average is $89.74.

Twilio Company Profile

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.