Twilio Inc. (NYSE:TWLO) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Analysts remain bullish on Twilio: Twenty-six firms assign the stock a consensus “Buy” rating, with 19 buys and four strong buys. The average 12-month price target is $220.59, while several firms recently raised targets to $230–$250.
• Twilio exceeded quarterly expectations, reporting $1.50 in earnings per share versus the $1.27 consensus and $1.41 billion in revenue versus $1.34 billion expected. Revenue increased 20% year over year.
• Insiders sold significant holdings totaling about $341.9 million over the last quarter, including a director’s sale of 1 million shares; institutional investors still own 84.27% of the stock.

Shares of Twilio Inc. (NYSE:TWLO - Get Free Report) have been given an average recommendation of "Buy" by the twenty-six research firms that are currently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, two have given a hold recommendation, nineteen have issued a buy recommendation and four have assigned a strong buy recommendation to the company. The average 12 month price target among analysts that have covered the stock in the last year is $220.5909.

Several research firms have issued reports on TWLO. BTIG Research upped their price objective on Twilio from $215.00 to $245.00 and gave the company a "buy" rating in a research note on Tuesday. Needham & Company LLC boosted their target price on Twilio from $200.00 to $250.00 and gave the stock a "buy" rating in a report on Monday, May 11th. KGI Securities started coverage on Twilio in a report on Thursday, July 2nd. They set an "outperform" rating and a $250.00 price target for the company. Bank of America raised shares of Twilio from an "underperform" rating to a "buy" rating and lifted their price objective for the stock from $110.00 to $190.00 in a research report on Wednesday, April 22nd. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $230.00 price objective on shares of Twilio in a research report on Thursday, June 18th.

Insider Activity at Twilio

In other news, CFO Aidan Viggiano sold 9,093 shares of the business's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $201.25, for a total transaction of $1,829,966.25. Following the completion of the sale, the chief financial officer owned 118,252 shares in the company, valued at $23,798,215. The trade was a 7.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 1,000,000 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $184.14, for a total value of $184,140,000.00. Following the sale, the director owned 620,000 shares of the company's stock, valued at approximately $114,166,800. This represents a 61.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,803,980 shares of company stock worth $341,898,467 in the last quarter. Corporate insiders own 0.21% of the company's stock.

Institutional Trading of Twilio

Several hedge funds have recently added to or reduced their stakes in the company. CX Institutional grew its holdings in Twilio by 9.5% in the 2nd quarter. CX Institutional now owns 701 shares of the technology company's stock valued at $145,000 after buying an additional 61 shares in the last quarter. Affinity Capital Advisors LLC lifted its holdings in shares of Twilio by 2.6% during the second quarter. Affinity Capital Advisors LLC now owns 2,869 shares of the technology company's stock worth $600,000 after buying an additional 74 shares in the last quarter. Everhart Financial Group Inc. lifted its holdings in shares of Twilio by 4.3% during the second quarter. Everhart Financial Group Inc. now owns 1,896 shares of the technology company's stock worth $391,000 after buying an additional 79 shares in the last quarter. GHP Investment Advisors Inc. boosted its position in shares of Twilio by 6.3% in the fourth quarter. GHP Investment Advisors Inc. now owns 1,459 shares of the technology company's stock valued at $208,000 after acquiring an additional 86 shares during the period. Finally, SJS Investment Consulting Inc. boosted its position in shares of Twilio by 27.7% in the first quarter. SJS Investment Consulting Inc. now owns 429 shares of the technology company's stock valued at $54,000 after acquiring an additional 93 shares during the period. 84.27% of the stock is owned by institutional investors and hedge funds.

Twilio Stock Down 3.2%

Shares of TWLO stock opened at $188.03 on Thursday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.66 and a current ratio of 4.66. The firm's 50-day moving average is $201.76 and its 200-day moving average is $158.18. The stock has a market cap of $28.54 billion, a price-to-earnings ratio of 293.81, a PEG ratio of 3.87 and a beta of 1.36. Twilio has a 52-week low of $91.84 and a 52-week high of $238.48.

Twilio (NYSE:TWLO - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The technology company reported $1.50 EPS for the quarter, topping analysts' consensus estimates of $1.27 by $0.23. The business had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.34 billion. Twilio had a return on equity of 4.64% and a net margin of 1.96%.Twilio's quarterly revenue was up 20.0% on a year-over-year basis. During the same quarter last year, the company posted $1.14 earnings per share. Sell-side analysts predict that Twilio will post 2.79 EPS for the current year.

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.

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