Twilio (NYSE:TWLO) Trading Down 3.4% on Insider Selling

Key Points

• Twilio's stock price declined by 3.4% following insider sales by CFO Aidan Viggiano and CEO Khozema Shipchandler, with a notable drop in trading volume.
• Analysts remain optimistic, with twenty-five analysts giving ratings ranging from Strong Buy to Hold, and a consensus target price of $130.22.
• The company's quarterly earnings report showed an earnings per share of $1.19, exceeding expectations and reflecting a 13.5% year-over-year revenue increase.

Twilio Inc. (NYSE:TWLO - Get Free Report) shares fell 3.4% during trading on Friday after an insider sold shares in the company. The company traded as low as $102.00 and last traded at $101.82. 906,401 shares were traded during mid-day trading, a decline of 71% from the average session volume of 3,150,074 shares. The stock had previously closed at $105.42.

Specifically, CFO Aidan Viggiano sold 8,363 shares of the business's stock in a transaction that occurred on Tuesday, September 30th. The shares were sold at an average price of $100.59, for a total transaction of $841,234.17. Following the completion of the sale, the chief financial officer directly owned 137,653 shares of the company's stock, valued at $13,846,515.27. The trade was a 5.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Khozema Shipchandler sold 13,681 shares of the business's stock in a transaction that occurred on Tuesday, September 30th. The stock was sold at an average price of $100.59, for a total transaction of $1,376,171.79. Following the sale, the chief executive officer directly owned 233,305 shares of the company's stock, valued at approximately $23,468,149.95. This trade represents a 5.54% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Piper Sandler boosted their price objective on shares of Twilio from $140.00 to $144.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Rosenblatt Securities restated a "buy" rating and set a $140.00 price objective on shares of Twilio in a report on Friday, September 26th. UBS Group decreased their price objective on shares of Twilio from $150.00 to $135.00 and set a "buy" rating for the company in a report on Friday, August 8th. 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. Finally, Royal Bank Of Canada restated an "underperform" rating and set a $75.00 price objective on shares of Twilio in a report on Wednesday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $130.22.

Twilio Price Performance

The company has a market cap of $15.70 billion, a price-to-earnings ratio of 852.71, a PEG ratio of 3.25 and a beta of 1.25. The company has a quick ratio of 4.90, a current ratio of 4.90 and a debt-to-equity ratio of 0.12. The company's fifty day moving average price is $108.40 and its two-hundred day moving average price is $108.58.

Twilio (NYSE:TWLO - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The technology company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.17. The company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.19 billion. Twilio had a net margin of 0.43% and a return on equity of 2.78%. The business's quarterly revenue was up 13.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.87 earnings per share. Twilio has set its Q3 2025 guidance at 1.010-1.060 EPS. On average, equities research analysts forecast that Twilio Inc. will post 1.44 EPS for the current fiscal year.

Institutional Trading of Twilio

A number of institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC lifted its position in shares of Twilio by 34.4% in the third quarter. GAMMA Investing LLC now owns 1,533 shares of the technology company's stock worth $153,000 after purchasing an additional 392 shares in the last quarter. Valeo Financial Advisors LLC bought a new stake in Twilio during the second quarter worth $343,000. American Trust bought a new stake in Twilio during the second quarter worth $662,000. Centaurus Financial Inc. raised its position in Twilio by 2.7% during the second quarter. Centaurus Financial Inc. now owns 13,493 shares of the technology company's stock worth $1,678,000 after acquiring an additional 357 shares in the last quarter. Finally, Orion Porfolio Solutions LLC bought a new stake in Twilio during the second quarter worth $320,000. Institutional investors own 84.27% of the company's stock.

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.

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