Twilio (NYSE:TWLO) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded Twilio to “hold” from “strong buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $249.68.
• Twilio reported stronger-than-expected quarterly results, with EPS of $1.47 versus the $1.32 estimate and revenue of $1.50 billion, up 22% year over year.
• Insiders sold approximately $133.3 million of Twilio shares over the past three months, while institutional investors continue to hold a substantial 84.27% of the company’s stock.

Twilio (NYSE:TWLO - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday, Zacks reports.

Other equities research analysts have also issued reports about the stock. Tigress Financial raised their price objective on shares of Twilio from $170.00 to $255.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. KGI Securities started coverage on Twilio in a report on Thursday, July 2nd. They set an "outperform" rating and a $250.00 target price on the stock. Morgan Stanley reissued an "overweight" rating and issued a $261.00 price objective on shares of Twilio in a research report on Friday, August 7th. The Goldman Sachs Group reissued a "buy" rating and set a $330.00 target price on shares of Twilio in a report on Friday, August 7th. Finally, Oppenheimer upped their price target on shares of Twilio from $235.00 to $275.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $249.68.

Twilio Price Performance

Shares of TWLO opened at $225.44 on Monday. The stock has a 50 day simple moving average of $216.98 and a 200 day simple moving average of $179.79. Twilio has a 52-week low of $98.44 and a 52-week high of $258.35. The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.62 and a current ratio of 4.62. The firm has a market capitalization of $34.62 billion, a PE ratio of 31.40, a P/E/G ratio of 4.83 and a beta of 1.40.

Twilio (NYSE:TWLO - Get Free Report) last announced its earnings results on Thursday, August 6th. The technology company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.32 by $0.15. Twilio had a net margin of 20.61% and a return on equity of 5.09%. The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period last year, the company posted $1.19 EPS. The business's quarterly revenue was up 22.0% on a year-over-year basis. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. Sell-side analysts predict that Twilio will post 3.08 EPS for the current fiscal year.

Insider Buying and Selling at Twilio

In other news, Director Andrew Stafman sold 500,000 shares of the firm's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $247.08, for a total transaction of $123,540,000.00. Following the completion of the transaction, the director owned 120,000 shares of the company's stock, valued at approximately $29,649,600. This trade represents a 80.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Khozema Shipchandler sold 14,458 shares of Twilio stock in a transaction on Monday, July 6th. The stock was sold at an average price of $210.43, for a total transaction of $3,042,396.94. Following the transaction, the chief executive officer owned 207,203 shares in the company, valued at approximately $43,601,727.29. This trade represents a 6.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 547,354 shares of company stock worth $133,284,825. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Twilio

Several institutional investors and hedge funds have recently made changes to their positions in TWLO. Plato Investment Management Ltd bought a new stake in Twilio in the second quarter valued at $1,637,000. National Pension Service boosted its position in shares of Twilio by 184.4% during the 4th quarter. National Pension Service now owns 18,545 shares of the technology company's stock worth $2,638,000 after purchasing an additional 12,025 shares in the last quarter. Assenagon Asset Management S.A. grew its stake in shares of Twilio by 67.8% in the 2nd quarter. Assenagon Asset Management S.A. now owns 120,582 shares of the technology company's stock valued at $24,880,000 after buying an additional 48,742 shares during the period. Jefferies Financial Group Inc. acquired a new stake in shares of Twilio in the 4th quarter valued at about $895,000. Finally, Tredje AP fonden bought a new stake in Twilio in the 4th quarter valued at about $2,694,000. Institutional investors and hedge funds own 84.27% of the company's stock.

About Twilio

Twilio Inc NYSE: TWLO is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio's platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.

The company's product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.