Twilio (NYSE:TWLO) Stock Price Target Cut by Needham & Company LLC

Key Points

• Needham cut Twilio’s price target from $280 to $240 while maintaining a “Buy” rating. The new target is slightly below the stock’s previous close, whereas the broader analyst consensus is a “Moderate Buy” with a $269.30 target.
• Twilio’s latest quarterly results beat expectations, with earnings of $1.65 per share and revenue of $1.56 billion, up 19.9% year over year.
• Growth is expected to slow in the fourth quarter: management projects organic revenue growth of 11%–12%, down from 16% in the third quarter, alongside lower profit. Insiders have also sold roughly $134.8 million of shares over the past 90 days.

Twilio (NYSE:TWLO - Get Free Report) had its target price cut by investment analysts at Needham & Company LLC from $280.00 to $240.00 in a research note issued on Friday, MarketBeat reports. The firm presently has a "buy" rating on the technology company's stock. Needham & Company LLC's target price would suggest a potential downside of 1.12% from the company's previous close.

Several other equities analysts have also issued reports on the company. Oppenheimer upped their target price on Twilio from $275.00 to $325.00 and gave the company an "outperform" rating in a report on Wednesday, October 21st. KeyCorp lifted their price target on Twilio from $200.00 to $250.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Zacks Research upgraded Twilio from a "hold" rating to a "strong-buy" rating in a report on Friday, October 16th. TD Cowen reissued a "buy" rating on shares of Twilio in a research report on Friday. Finally, Bank of America upped their price objective on Twilio from $270.00 to $320.00 and gave the company a "buy" rating in a research note on Wednesday, October 14th. Three research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Twilio presently has an average rating of "Moderate Buy" and a consensus target price of $269.30.

Twilio Stock Performance

Shares of TWLO stock opened at $242.71 on Friday. The company has a debt-to-equity ratio of 0.11, a current ratio of 4.62 and a quick ratio of 4.62. The firm has a 50-day moving average of $256.85 and a 200-day moving average of $187.78. Twilio has a one year low of $105.00 and a one year high of $308.40. The company has a market cap of $37.27 billion, a P/E ratio of 33.80, a P/E/G ratio of 5.20 and a beta of 1.35.

Twilio (NYSE:TWLO - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The technology company reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.18. Twilio had a net margin of 20.61% and a return on equity of 5.09%. The business had revenue of $1.56 billion for the quarter, compared to analysts' expectations of $1.52 billion. During the same period in the previous year, the company earned $1.25 earnings per share. The firm's revenue for the quarter was up 19.9% compared to the same quarter last year. Equities research analysts forecast that Twilio will post 3.12 EPS for the current fiscal year.

Insider Buying and Selling at Twilio

In other Twilio news, CFO Aidan Viggiano sold 9,084 shares of the firm's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $294.65, for a total value of $2,676,600.60. Following the completion of the sale, the chief financial officer directly owned 99,246 shares of the company's stock, valued at $29,242,833.90. This trade represents a 8.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 500,000 shares of the business's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $247.08, for a total value of $123,540,000.00. Following the completion of the sale, the director owned 120,000 shares in the company, valued at approximately $29,649,600. The trade was a 80.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 538,818 shares of company stock valued at $134,833,645. Company insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On Twilio

Institutional investors have recently added to or reduced their stakes in the business. Oregon Public Employees Retirement Fund raised its position in shares of Twilio by 1.3% in the third quarter. Oregon Public Employees Retirement Fund now owns 31,813 shares of the technology company's stock worth $9,304,000 after buying an additional 417 shares in the last quarter. BOCHK Asset Management Ltd purchased a new stake in Twilio in the third quarter valued at approximately $2,398,000. Trek Financial LLC raised its stake in Twilio by 21.9% in the third quarter. Trek Financial LLC now owns 4,720 shares of the technology company's stock valued at $1,380,000 after purchasing an additional 847 shares in the last quarter. Greenleaf Trust lifted its position in Twilio by 9.3% during the third quarter. Greenleaf Trust now owns 2,160 shares of the technology company's stock valued at $632,000 after purchasing an additional 184 shares during the last quarter. Finally, Nippon Life Global Investors Americas Inc. bought a new stake in Twilio during the third quarter valued at approximately $20,484,000. 84.27% of the stock is owned by hedge funds and other institutional investors.

Twilio News Summary

Here are the key news stories impacting Twilio this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Twilio reported adjusted earnings of $1.65 per share, above the $1.46-$1.47 consensus, while revenue of $1.56 billion topped estimates of roughly $1.52 billion. Revenue increased 19.9% year over year, and the company delivered a substantial year-over-year improvement in earnings. Twilio Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year revenue guidance was raised. The improved annual outlook suggests management continues to see healthy demand for Twilio’s customer-engagement platform, despite a more cautious fourth-quarter forecast. Twilio Raises Full-Year Revenue Guidance
• Neutral Sentiment: Analyst commentary before the report included a new Buy rating and a Wells Fargo view that the stock could rise, but those supportive opinions were overshadowed by the company’s forward outlook. New Buy Rating for Twilio
• Negative Sentiment: Fourth-quarter growth is expected to slow materially. Twilio’s organic revenue growth was 16% in the third quarter, but management anticipates only 11%-12% growth in the fourth quarter. The outlook also calls for lower profit, raising concerns that the company’s growth trajectory is decelerating even as it remains profitable. Twilio Sees Slower Q4 Growth and Lower Profit

About Twilio

Twilio Inc NYSE: TWLO provides a cloud-based customer engagement platform that enables businesses to communicate with customers through software and application programming interfaces (APIs). Its services support messaging, voice, video, email, authentication, contact centers and other digital interactions across mobile and web applications.

The company's products include programmable communications tools, Twilio SendGrid for email delivery, Twilio Verify for user authentication, Twilio Flex for cloud contact centers, and Twilio Segment for collecting and using customer data.

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