Twilio (NYSE:TWLO) Raised to Strong-Buy at Zacks Research

Key Points

• Twilio was upgraded to “strong-buy” by Zacks Research, adding to a broadly bullish analyst tone around the stock.
• Several other firms recently raised their views or price targets, and the consensus rating is “Buy” with an average price target of $211.27.
• Twilio reported better-than-expected quarterly results with EPS of $1.50 vs. $1.27 expected and revenue up 20% year over year to $1.41 billion.

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

Other equities analysts also recently issued reports about the stock. Bank of America upgraded shares of Twilio from an "underperform" rating to a "buy" rating and increased their price objective for the company from $110.00 to $190.00 in a research note on Wednesday, April 22nd. KGI Securities began coverage on Twilio in a report on Thursday, July 2nd. They set an "outperform" rating and a $250.00 target price for the company. KeyCorp increased their target price on Twilio from $156.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Wells Fargo & Company lifted their price target on Twilio from $147.00 to $200.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Finally, Morgan Stanley reissued an "overweight" rating and issued a $200.00 price target on shares of Twilio in a research report on Friday, May 1st. Four equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $211.27.

Twilio Stock Performance

Shares of Twilio stock opened at $218.17 on Monday. The company has a current ratio of 4.66, a quick ratio of 4.66 and a debt-to-equity ratio of 0.13. The stock's fifty day moving average price is $201.52 and its 200-day moving average price is $153.82. The firm has a market cap of $33.11 billion, a P/E ratio of 340.89, a P/E/G ratio of 4.34 and a beta of 1.36. Twilio has a 12 month low of $91.84 and a 12 month high of $238.48.

Twilio (NYSE:TWLO - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The technology company reported $1.50 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.23. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.34 billion. Twilio had a net margin of 1.96% and a return on equity of 4.64%. The firm's revenue for the quarter was up 20.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.14 earnings per share. Twilio has set its Q2 2026 guidance at 2.500-2.600 EPS. On average, equities research analysts expect that Twilio will post 2.79 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Erika Rottenberg sold 2,000 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $199.01, for a total transaction of $398,020.00. Following the transaction, the director directly owned 30,995 shares of the company's stock, valued at $6,168,314.95. This represents a 6.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Khozema Shipchandler sold 14,458 shares of the stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $210.43, for a total value of $3,042,396.94. Following the completion of the sale, the chief executive officer owned 207,203 shares of the company's stock, valued at approximately $43,601,727.29. This trade represents a 6.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,805,780 shares of company stock worth $342,166,703. 0.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Twilio

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Kennicott Capital Management LLC acquired a new position in Twilio during the 2nd quarter valued at approximately $235,000. Generali Investments Management Co LLC increased its position in shares of Twilio by 23.5% in the 2nd quarter. Generali Investments Management Co LLC now owns 8,192 shares of the technology company's stock valued at $1,690,000 after acquiring an additional 1,557 shares during the period. Wealthcare Advisory Partners LLC acquired a new position in shares of Twilio in the 2nd quarter valued at $247,000. Revolve Wealth Partners LLC purchased a new position in Twilio in the 2nd quarter worth $381,000. Finally, Legacy Wealth Asset Management LLC purchased a new position in Twilio in the 2nd quarter worth $306,000. 84.27% of the stock is owned by hedge funds and other institutional investors.

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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