Twilio (NYSE:TWLO) Shares Down 9.6% - Should You Sell?

Key Points

• Shares fell 9.6% to about $122.79 on Thursday with trading volume below average (1.47M vs. 2.21M), and the stock sits near its 50‑day $132.14 and just above its 200‑day $120.05 moving averages.
• Analyst consensus is a "Moderate Buy" with an average price target of $146.44; recent notes are mixed—some firms raised targets (e.g., Morgan Stanley, BTIG) while Bank of America keeps an underperform rating.
• Twilio beat quarterly estimates (EPS $1.25 vs. $1.07; revenue $1.30B vs. $1.25B) but has a thin net margin (~1.37%) and a very high P/E (~301), and insiders have sold substantial stock (over 1.04M shares recently).

Twilio Inc. (NYSE:TWLO - Get Free Report) shares traded down 9.6% on Thursday . The stock traded as low as $122.52 and last traded at $122.7850. 1,469,064 shares were traded during trading, a decline of 33% from the average session volume of 2,206,331 shares. The stock had previously closed at $135.86.

Analyst Upgrades and Downgrades

TWLO has been the subject of several recent research reports. Bank of America boosted their target price on shares of Twilio from $100.00 to $110.00 and gave the stock an "underperform" rating in a research report on Friday, October 31st. Morgan Stanley boosted their price objective on Twilio from $154.00 to $169.00 and gave the stock an "overweight" rating in a report on Thursday, January 15th. BTIG Research started coverage on Twilio in a report on Monday, January 5th. They issued a "buy" rating and a $165.00 target price on the stock. Wells Fargo & Company increased their price target on Twilio from $130.00 to $147.00 and gave the company an "overweight" rating in a research report on Friday, October 31st. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $150.00 price objective on shares of Twilio in a report on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $146.44.

Twilio Stock Down 9.1%

The stock has a 50 day moving average price of $132.14 and a 200 day moving average price of $120.05. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.68 and a current ratio of 4.68. The company has a market capitalization of $18.94 billion, a P/E ratio of 301.10, a PEG ratio of 2.61 and a beta of 1.30.

Twilio (NYSE:TWLO - Get Free Report) last posted its quarterly earnings data on Thursday, October 30th. The technology company reported $1.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.07 by $0.18. The business had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.25 billion. Twilio had a net margin of 1.37% and a return on equity of 3.36%. The firm's quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter last year, the company posted $1.02 earnings per share. Equities research analysts forecast that Twilio Inc. will post 1.44 earnings per share for the current fiscal year.

Insider Activity at Twilio

In other news, CEO Khozema Shipchandler sold 13,336 shares of Twilio stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $134.28, for a total value of $1,790,758.08. Following the completion of the transaction, the chief executive officer owned 193,781 shares in the company, valued at $26,020,912.68. This trade represents a 6.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Andrew Stafman sold 1,000,000 shares of Twilio stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $129.00, for a total transaction of $129,000,000.00. Following the completion of the transaction, the director owned 2,295,000 shares of the company's stock, valued at $296,055,000. This represents a 30.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,043,438 shares of company stock worth $135,022,770. Insiders own 4.50% of the company's stock.

Institutional Trading of Twilio

A number of hedge funds have recently made changes to their positions in the stock. Knights of Columbus Asset Advisors LLC bought a new position in Twilio in the 2nd quarter worth about $4,809,000. Hood River Capital Management LLC raised its holdings in Twilio by 36.2% in the 2nd quarter. Hood River Capital Management LLC now owns 133,529 shares of the technology company's stock worth $16,606,000 after acquiring an additional 35,468 shares during the last quarter. Nordea Investment Management AB increased its holdings in shares of Twilio by 2.6% in the 3rd quarter. Nordea Investment Management AB now owns 1,152,727 shares of the technology company's stock worth $114,777,000 after purchasing an additional 29,089 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Twilio by 694.7% during the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 58,579 shares of the technology company's stock valued at $7,285,000 after purchasing an additional 51,208 shares in the last quarter. Finally, Securian Asset Management Inc. purchased a new stake in shares of Twilio during the third quarter valued at $1,150,000. 84.27% of the stock is owned by institutional investors.

Twilio Company Profile

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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