Twilio (NYSE:TWLO) Shares Gap Down After Earnings Miss

Twilio Inc. (NYSE:TWLO - Get Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $147.28, but opened at $131.86. Twilio shares last traded at $123.30, with a volume of 6,087,390 shares changing hands.

The technology company reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.99 by ($0.77). Twilio had a positive return on equity of 0.85% and a negative net margin of 10.65%. The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion.

Analysts Set New Price Targets

A number of brokerages have weighed in on TWLO. Morgan Stanley boosted their price target on Twilio from $115.00 to $118.00 and gave the stock an "equal weight" rating in a research report on Friday, January 17th. Mizuho increased their target price on Twilio from $140.00 to $150.00 and gave the stock an "outperform" rating in a research note on Friday, January 24th. Royal Bank of Canada reiterated an "underperform" rating and issued a $50.00 price objective on shares of Twilio in a research note on Tuesday, January 21st. Barclays upped their target price on Twilio from $120.00 to $140.00 and gave the company an "equal weight" rating in a research report on Friday. Finally, Scotiabank upped their price target on shares of Twilio from $90.00 to $160.00 and gave the stock a "sector outperform" rating in a report on Friday, January 24th. One research analyst has rated the stock with a sell rating, eight have given a hold rating, sixteen have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $130.91.

Insider Activity at Twilio

In other Twilio news, CEO Khozema Shipchandler sold 10,834 shares of the stock in a transaction that occurred on Monday, January 6th. The shares were sold at an average price of $113.58, for a total transaction of $1,230,525.72. Following the completion of the sale, the chief executive officer now owns 244,971 shares of the company's stock, valued at approximately $27,823,806.18. This represents a 4.24 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Aidan Viggiano sold 6,552 shares of the business's stock in a transaction that occurred on Monday, January 6th. The stock was sold at an average price of $113.55, for a total transaction of $743,979.60. Following the completion of the transaction, the chief financial officer now owns 153,910 shares in the company, valued at $17,476,480.50. This trade represents a 4.08 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 22,015 shares of company stock worth $2,483,695 in the last quarter. 4.50% of the stock is owned by insiders.

Institutional Trading of Twilio

A number of large investors have recently bought and sold shares of TWLO. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Twilio by 26.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,602,428 shares of the technology company's stock valued at $173,190,000 after purchasing an additional 331,202 shares in the last quarter. Waverly Advisors LLC bought a new position in shares of Twilio during the 4th quarter worth approximately $201,000. Worldquant Millennium Advisors LLC grew its position in shares of Twilio by 1,886.3% during the 4th quarter. Worldquant Millennium Advisors LLC now owns 267,758 shares of the technology company's stock worth $28,939,000 after buying an additional 254,278 shares during the period. Whale Rock Capital Management LLC bought a new stake in shares of Twilio in the 4th quarter valued at $111,312,000. Finally, Woodline Partners LP acquired a new position in shares of Twilio during the 4th quarter valued at $393,000. 84.27% of the stock is currently owned by institutional investors and hedge funds.

Twilio Stock Performance

The company has a quick ratio of 5.06, a current ratio of 5.06 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $19.24 billion, a P/E ratio of -48.81, a price-to-earnings-growth ratio of 3.60 and a beta of 1.43. The company's 50 day moving average is $121.50 and its 200-day moving average is $91.13.

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.