A Look at Twitter Inc. (TWTR) Shares in the Recent Past Indicates Growth

Twitter Inc. (NYSE: TWTR) stock fell -0.98% on Friday to $41.27 against a previous-day closing price of $41.68. With 7.58 million shares changed hands, the volume of the stock remained lighter than its average volume of 13.56 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $42.19 whereas the lowest price it dropped to was $41.27. The 52-week range on TWTR shows that it touched its highest point at $68.41 and its lowest point at $31.30 during that stretch. It currently has a 1-year price target of $42.05. Beta for the stock currently stands at 0.64.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TWTR was down-trending over the past week, with a drop of -1.50%, but this was down by -4.05% over a month. Three-month performance surged to 7.11% while six-month performance rose 7.39%. The stock lost -34.26% in the past year, while it has lost -4.51% so far this year. A look at the trailing 12-month EPS for TWTR yields -0.19 with Next year EPS estimates of 0.60. For the next quarter, that number is 0.01. This implies an EPS growth rate of 80.70% for this year and -46.13% for next year.

Float and Shares Shorts:

At present, 766.84 million TWTR shares are outstanding with a float of 635.93 million shares on hand for trading. On Jul 14, 2022, short shares totaled 34.59 million, which was 4.53% higher than short shares on Jun 14, 2022. In addition to Mr. Parag Agrawal as the firm’s CEO & Director, Mr. Jack Dorsey serves as its Co-Founder.

Institutional Ownership:

Through their ownership of 70.72% of TWTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 32.76% of TWTR, in contrast to 26.81% held by mutual funds. Shares owned by individuals account for 17.60%. As the largest shareholder in TWTR with 8.95% of the stake, The Vanguard Group, Inc. holds 68,515,022 shares worth 68,515,022. A second-largest stockholder of TWTR, BlackRock Fund Advisors, holds 35,692,991 shares, controlling over 4.66% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in TWTR, holding 32,742,284 shares or 4.28% stake. With a 2.37% stake in TWTR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 18,110,099 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.22% of TWTR stock, is the second-largest Mutual Fund holder. It holds 17,019,864 shares valued at 659.52 million. Vanguard Mid Cap Index Fund holds 1.83% of the stake in TWTR, owning 14,036,504 shares worth 543.91 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TWTR since 32 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 30 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TWTR analysts setting a high price target of $54.20 and a low target of $22.00, the average target price over the next 12 months is $41.51. Based on these targets, TWTR could surge 31.33% to reach the target high and fall by -46.69% to reach the target low. Reaching the average price target will result in a growth of 0.58% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TWTR will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $1.68 being high and $0.90 being low. For TWTR, this leads to a yearly average estimate of $1.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Twitter Inc. surprised analysts by -$0.22 when it reported -$0.08 EPS against a consensus estimate of $0.14. The surprise factor in the prior quarter was $0.85. Based on analyst estimates, the high estimate for the next quarter is $0.19 and the low estimate is -$0.15. The average estimate for the next quarter is thus $0.00.

Summary of Insider Activity:

Insiders traded TWTR stock several times over the past three months with 0 Buys and 14 Sells. In these transactions, 0 shares were bought while 165,835 shares were sold. The number of buy transactions has increased to 42 while that of sell transactions has risen to 72 over the past year. The total number of shares bought during that period was 4,307,471 while 1,215,759 shares were sold.

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