Twilio (NYSE:TWLO) Shares Gap Down Following Analyst Downgrade

Key Points

• Twilio's stock price gapped down significantly, opening at $103.45 after a previous close of $122.39, with the stock trading at $100.59 later in the day.
• Analysts have mixed ratings for Twilio, with one sell rating, seven holds, seventeen buys, and an average target price of $127.39, reflecting a consensus of "Moderate Buy."
• In recent insider transactions, CFO Aidan Viggiano and CEO Khozema Shipchandler each sold shares of the company, indicating a decrease in their personal stakes in Twilio.

Twilio Inc. (NYSE:TWLO - Get Free Report) shares gapped down prior to trading on Friday after UBS Group lowered their price target on the stock from $150.00 to $135.00. The stock had previously closed at $122.39, but opened at $103.45. UBS Group currently has a buy rating on the stock. Twilio shares last traded at $100.59, with a volume of 4,094,522 shares.

TWLO has been the topic of several other reports. Jefferies Financial Group set a $132.00 price objective on shares of Twilio and gave the company a "hold" rating in a report on Sunday, June 15th. Robert W. Baird dropped their target price on Twilio from $160.00 to $130.00 and set an "outperform" rating for the company in a research report on Wednesday, April 30th. KeyCorp initiated coverage on Twilio in a research report on Friday, June 6th. They issued an "overweight" rating and a $146.00 target price for the company. Piper Sandler lifted their target price on Twilio from $140.00 to $144.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $125.00 target price on shares of Twilio in a research report on Friday, May 16th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Twilio has an average rating of "Moderate Buy" and a consensus target price of $126.74.

Insider Buying and Selling at Twilio

In other Twilio news, CEO Khozema Shipchandler sold 20,008 shares of Twilio stock in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $124.53, for a total value of $2,491,596.24. Following the transaction, the chief executive officer directly owned 260,581 shares in the company, valued at approximately $32,450,151.93. This trade represents a 7.13% decrease in their position. The sale 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 Twilio stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $120.03, for a total value of $492,123.00. Following the completion of the transaction, the director owned 33,488 shares in the company, valued at $4,019,564.64. This trade 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 worth $6,753,409. 4.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of TWLO. Jericho Capital Asset Management L.P. acquired a new position in Twilio during the fourth quarter worth $301,258,000. Ninety One UK Ltd acquired a new position in Twilio during the second quarter worth $212,059,000. Nordea Investment Management AB grew its holdings in Twilio by 4,231.2% during the second quarter. Nordea Investment Management AB now owns 1,123,638 shares of the technology company's stock worth $139,736,000 after acquiring an additional 1,097,695 shares during the period. Two Sigma Investments LP grew its holdings in Twilio by 1,292.9% during the fourth quarter. Two Sigma Investments LP now owns 1,129,725 shares of the technology company's stock worth $122,101,000 after acquiring an additional 1,048,619 shares during the period. Finally, Whale Rock Capital Management LLC acquired a new position in Twilio during the fourth quarter worth $111,312,000. 84.27% of the stock is currently owned by hedge funds and other institutional investors.

Twilio Price Performance

The stock has a fifty day moving average of $121.39 and a two-hundred day moving average of $114.04. The stock has a market cap of $14.67 billion, a price-to-earnings ratio of 801.88, a price-to-earnings-growth ratio of 2.98 and a beta of 1.23. The company has a quick ratio of 4.78, a current ratio of 4.78 and a debt-to-equity ratio of 0.12.

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 for the quarter, topping analysts' consensus estimates of $1.02 by $0.17. Twilio had a return on equity of 2.77% and a net margin of 0.43%. The firm had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the prior year, the company posted $0.87 earnings per share. Twilio's quarterly revenue was up 13.5% on a year-over-year basis. On average, equities research analysts anticipate that Twilio Inc. will post 1.44 earnings per share for the current year.

About Twilio

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.