Twilio's (TWLO) Underperform Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada has reiterated an "underperform" rating for Twilio (TWLO), with a price target of $75.00, indicating a potential downside of 27.44% from its previous close.
• Despite the downgrade, a majority of analysts maintain positive outlooks with 17 "buy" ratings, while the current consensus rating for Twilio is "Moderate Buy" with a target price of $129.78.
• Insider selling activity has been noted, with CEO Khozema Shipchandler selling 13,595 shares, representing a 5.22% decrease in his ownership stake.

Royal Bank Of Canada restated their underperform rating on shares of Twilio (NYSE:TWLO - Free Report) in a research report report published on Wednesday,Benzinga reports. They currently have a $75.00 price target on the technology company's stock.

TWLO has been the subject of several other research reports. Jefferies Financial Group set a $132.00 price target on shares of Twilio and gave the stock a "hold" rating in a research report on Sunday, June 15th. Wall Street Zen downgraded Twilio from a "strong-buy" rating to a "buy" rating in a research report on Friday, May 30th. Piper Sandler increased their target price on shares of Twilio from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. UBS Group cut their target price on shares of Twilio from $150.00 to $135.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. Finally, KeyCorp started coverage on Twilio in a research note on Friday, June 6th. They set an "overweight" rating and a $146.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $129.78.

Twilio Price Performance

Shares of Twilio stock traded down $1.91 on Wednesday, hitting $106.47. The company's stock had a trading volume of 6,575,573 shares, compared to its average volume of 2,382,735. The company has a market capitalization of $16.34 billion, a P/E ratio of 887.32, a price-to-earnings-growth ratio of 3.42 and a beta of 1.27. Twilio has a 52-week low of $61.91 and a 52-week high of $151.95. The firm has a fifty day moving average price of $113.00 and a 200-day moving average price of $108.64. The company has a quick ratio of 4.90, a current ratio of 4.90 and a debt-to-equity ratio of 0.12.

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

Insider Transactions at Twilio

In related news, CEO Khozema Shipchandler sold 20,008 shares of the company's stock in a transaction on Monday, June 30th. The stock was sold at an average price of $124.53, for a total transaction of $2,491,596.24. Following the completion of the transaction, the chief executive officer directly owned 260,581 shares in the company, valued at $32,450,151.93. This represents a 7.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Aidan Viggiano sold 8,297 shares of the stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of $117.05, for a total value of $971,163.85. Following the completion of the sale, the chief financial officer directly owned 147,823 shares in the company, valued at $17,302,682.15. This represents a 5.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 51,671 shares of company stock worth $6,235,788. Insiders own 0.21% of the company's stock.

Institutional Trading of Twilio

Several hedge funds have recently bought and sold shares of the company. Jericho Capital Asset Management L.P. raised its holdings in shares of Twilio by 17.7% during the first quarter. Jericho Capital Asset Management L.P. now owns 3,280,363 shares of the technology company's stock valued at $321,180,000 after buying an additional 493,000 shares during the last quarter. Alyeska Investment Group L.P. increased its position in Twilio by 36.4% in the 1st quarter. Alyeska Investment Group L.P. now owns 2,071,826 shares of the technology company's stock valued at $202,852,000 after acquiring an additional 553,043 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Twilio by 19.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,920,443 shares of the technology company's stock valued at $188,031,000 after acquiring an additional 318,015 shares in the last quarter. Norges Bank acquired a new position in Twilio during the 2nd quarter worth $228,877,000. Finally, Ninety One UK Ltd acquired a new position in Twilio during the 2nd quarter worth $212,059,000. 84.27% of the stock is currently owned by institutional investors.

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.