Twilio (NYSE:TWLO) Shares Down 6% Following Analyst Downgrade

Key Points

• Twilio's stock price dropped 6% following a downgrade by UBS Group, which lowered its price target from $150 to $135 while maintaining a buy rating on the stock.
• Despite the downgrade, Twilio has received various ratings from analysts, with one sell, seven hold, and seventeen buy ratings, indicating mixed sentiment among investors.
• In recent insider trading activity, CEO Khozema Shipchandler and CFO Aidan Viggiano sold significant shares, resulting in a decrease of over 5% in their ownership positions.

Twilio Inc. (NYSE:TWLO - Get Free Report)'s share price traded down 6% during mid-day trading on Monday after UBS Group lowered their price target on the stock from $150.00 to $135.00. UBS Group currently has a buy rating on the stock. Twilio traded as low as $92.56 and last traded at $92.74. 5,283,600 shares changed hands during trading, an increase of 77% from the average session volume of 2,982,529 shares. The stock had previously closed at $98.67.

A number of other brokerages have also recently weighed in on TWLO. Robert W. Baird dropped their price target on Twilio from $160.00 to $130.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 30th. Scotiabank lifted their target price on shares of Twilio from $130.00 to $135.00 and gave the stock a "sector outperform" rating in a research report on Friday, May 2nd. Mizuho cut their price target on shares of Twilio from $165.00 to $125.00 and set an "outperform" rating on the stock in a report on Tuesday, April 15th. The Goldman Sachs Group raised their price objective on shares of Twilio from $130.00 to $145.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. Finally, HSBC raised shares of Twilio from a "reduce" rating to a "hold" rating and boosted their target price for the company from $77.00 to $99.00 in a research note on Monday, May 5th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $126.74.

Insider Activity at Twilio

In other news, CFO Aidan Viggiano sold 8,297 shares of Twilio stock in a transaction that occurred on Thursday, July 3rd. The shares were sold at an average price of $117.05, for a total value of $971,163.85. Following the transaction, the chief financial officer owned 147,823 shares of the company's stock, valued at $17,302,682.15. This trade represents a 5.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Erika Rottenberg sold 4,100 shares of the company's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $120.03, for a total transaction of $492,123.00. Following the sale, the director directly owned 33,488 shares of the company's stock, valued at approximately $4,019,564.64. This represents a 10.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 55,888 shares of company stock valued at $6,753,409. Corporate insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Schroder Investment Management Group boosted its holdings in Twilio by 56.7% during the second quarter. Schroder Investment Management Group now owns 536,997 shares of the technology company's stock valued at $66,781,000 after acquiring an additional 194,200 shares during the period. Neuberger Berman Group LLC lifted its position in shares of Twilio by 17,371.0% during the 2nd quarter. Neuberger Berman Group LLC now owns 547,192 shares of the technology company's stock worth $68,049,000 after purchasing an additional 544,060 shares during the last quarter. Norges Bank acquired a new position in shares of Twilio during the 2nd quarter worth about $228,877,000. Northwestern Mutual Wealth Management Co. boosted its stake in Twilio by 18.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 22,830 shares of the technology company's stock valued at $2,839,000 after purchasing an additional 3,498 shares during the period. Finally, State Board of Administration of Florida Retirement System grew its holdings in Twilio by 0.8% in the 2nd quarter. State Board of Administration of Florida Retirement System now owns 165,790 shares of the technology company's stock valued at $20,618,000 after buying an additional 1,350 shares during the last quarter. Institutional investors own 84.27% of the company's stock.

Twilio Trading Up 5.6%

The company has a market capitalization of $15.36 billion, a P/E ratio of 838.42, a P/E/G ratio of 2.95 and a beta of 1.23. The company has a 50-day simple moving average of $120.94 and a 200 day simple moving average of $113.91. The company has a debt-to-equity ratio of 0.12, a quick ratio of 4.78 and a current ratio of 4.90.

Twilio (NYSE:TWLO - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The technology company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.17. The business had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.19 billion. Twilio had a net margin of 0.43% and a return on equity of 2.78%. Twilio's quarterly revenue was up 13.5% on a year-over-year basis. During the same quarter last year, the company posted $0.87 earnings per share. Sell-side analysts expect that Twilio Inc. will post 1.44 earnings per share for the current year.

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.