Twilio (NYSE:TWLO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.

According to Zacks, “Twilio is benefiting from its continued focus on introducing products and its go-to-market sales strategy. Solid growth in the company’s core voice and messaging products is a key driver. Rapid adoption of application-to-person communication is helping it expand its total addressable market. Robust expansion within the existing customer base and also first-time deals with new clients make us optimistic about the company’s growth prospects. Moreover, strategic alliances and focus on enhancing international operations is paying off well for the company. Estimates have been stable ahead of the company's Q4 earnings release. The company has positive record of earnings surprises in recent quarters. Shares have outperformed the industry in the past year. However, Twilio's contracting gross margin due to unfavorable international traffic mix and reduced revenue contribution from Uber is a major concern for the company.”

Several other analysts have also recently commented on the stock. KeyCorp restated an “overweight” rating and issued a $114.00 target price (up previously from $103.00) on shares of Twilio in a research note on Tuesday. Stephens assumed coverage on shares of Twilio in a research note on Thursday, January 3rd. They issued an “equal weight” rating and a $110.00 target price for the company. Deutsche Bank raised their target price on shares of Twilio to $110.00 and gave the stock a “buy” rating in a research note on Tuesday, December 18th. Argus raised their target price on shares of Twilio from $90.00 to $110.00 and gave the stock a “buy” rating in a research note on Thursday, November 8th. Finally, Canaccord Genuity raised their target price on shares of Twilio from $80.00 to $90.00 and gave the stock a “buy” rating in a research note on Wednesday, November 7th. Three analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $87.52.

NYSE:TWLO traded up $0.53 during trading hours on Friday, reaching $96.73. 223,801 shares of the company’s stock were exchanged, compared to its average volume of 4,219,719. The stock has a market cap of $9.64 billion, a P/E ratio of -123.90 and a beta of 1.08. The company has a debt-to-equity ratio of 0.99, a current ratio of 6.78 and a quick ratio of 6.78. Twilio has a 1-year low of $23.25 and a 1-year high of $100.95.

Twilio (NYSE:TWLO) last issued its quarterly earnings results on Tuesday, November 6th. The technology company reported ($0.15) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.19) by $0.04. The firm had revenue of $168.90 million during the quarter, compared to analysts’ expectations of $151.62 million. Twilio had a negative net margin of 16.70% and a negative return on equity of 18.94%. Twilio’s quarterly revenue was up 68.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.08) EPS. Sell-side analysts expect that Twilio will post -0.69 EPS for the current fiscal year.

In other Twilio news, General Counsel Karyn Smith sold 939 shares of the firm’s stock in a transaction dated Monday, October 15th. The shares were sold at an average price of $74.55, for a total transaction of $70,002.45. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Lee Kirkpatrick sold 14,000 shares of the firm’s stock in a transaction dated Monday, October 15th. The stock was sold at an average price of $75.43, for a total transaction of $1,056,020.00. The disclosure for this sale can be found here. Insiders sold a total of 172,365 shares of company stock valued at $14,311,435 in the last quarter. Insiders own 19.80% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Strs Ohio boosted its stake in Twilio by 99.8% during the 2nd quarter. Strs Ohio now owns 3,797 shares of the technology company’s stock worth $212,000 after purchasing an additional 1,897 shares during the period. SG Americas Securities LLC boosted its stake in Twilio by 100.4% during the 2nd quarter. SG Americas Securities LLC now owns 8,025 shares of the technology company’s stock worth $450,000 after purchasing an additional 4,020 shares during the period. Russell Investments Group Ltd. boosted its stake in Twilio by 3,808.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 54,754 shares of the technology company’s stock worth $3,067,000 after purchasing an additional 53,353 shares during the period. GSA Capital Partners LLP acquired a new stake in Twilio during the 2nd quarter worth $406,000. Finally, Legal & General Group Plc boosted its stake in Twilio by 29.3% during the 2nd quarter. Legal & General Group Plc now owns 31,301 shares of the technology company’s stock worth $1,754,000 after purchasing an additional 7,097 shares during the period. 58.65% of the stock is currently owned by institutional investors and hedge funds.

About Twilio

Twilio Inc provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The company's programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications.

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