A History of Outperforming Analyst Forecasts and Beating the Odds: Twilio Inc. (TWLO)

Twilio Inc. (NYSE: TWLO) stock fell -2.97% on Monday to $60.86 against a previous-day closing price of $62.72. With 2.84 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.62 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $62.60 whereas the lowest price it dropped to was $60.77. The 52-week range on TWLO shows that it touched its highest point at $79.70 and its lowest point at $41.00 during that stretch. It currently has a 1-year price target of $67.34. Beta for the stock currently stands at 1.33.

Top 5 EV Tech Stocks to Buy for 2023

The electric vehicle boom is accelerating – and fast. According a new report published by BloombergNEF, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before. Like we said, the boom is accelerating – and the time to buy EV-related tech stocks is now. Get our free report, "Top 5 EV Tech Stocks to Buy for 2023".

Click Here to Download the FREE Report.


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 TWLO was down-trending over the past week, with a drop of -8.77%, but this was up by 3.72% over a month. Three-month performance dropped to -10.04% while six-month performance fell -3.18%. The stock lost -21.66% in the past year, while it has gained 24.31% so far this year. A look at the trailing 12-month EPS for TWLO yields -6.61 with Next year EPS estimates of 2.14. For the next quarter, that number is 0.35. This implies an EPS growth rate of -25.90% for this year and 24.51% for next year.

Float and Shares Shorts:

At present, 183.49 million TWLO shares are outstanding with a float of 169.93 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.31 million, which was 3.48% higher than short shares on Jul 30, 2023. In addition to Mr. Jeffrey Lawson as the firm’s Co-Founder, Chairman & CEO, Mr. Dana R. Wagner serves as its Chief Legal Officer, Chief Compliance Officer & Corp. Sec.

Institutional Ownership:

Through their ownership of 83.34% of TWLO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.33% of TWLO, in contrast to 42.50% held by mutual funds. Shares owned by individuals account for 40.22%. As the largest shareholder in TWLO with 9.24% of the stake, The Vanguard Group, Inc. holds 16,744,096 shares worth 16,744,096. A second-largest stockholder of TWLO, Generation Investment Management, holds 8,701,643 shares, controlling over 4.80% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TWLO, holding 7,305,071 shares or 4.03% stake. With a 3.00% stake in TWLO, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 5,439,673 shares are owned by the mutual fund manager. The ARK Innovation ETF, which owns about 2.73% of TWLO stock, is the second-largest Mutual Fund holder. It holds 4,941,254 shares valued at 314.81 million. Vanguard Mid Cap Index Fund holds 2.23% of the stake in TWLO, owning 4,038,819 shares worth 257.31 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TWLO reported revenue of $943.35M and operating income of -$311.94M. The EBITDA in the recently reported quarter was -$242.29M and diluted EPS was -$1.77.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TWLO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TWLO analysts setting a high price target of $110.00 and a low target of $50.00, the average target price over the next 12 months is $67.93. Based on these targets, TWLO could surge 80.74% to reach the target high and fall by -17.84% to reach the target low. Reaching the average price target will result in a growth of 11.62% 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.

Summary of Insider Activity:

Insiders traded TWLO stock several times over the past three months with 0 Buys and 11 Sells. In these transactions, 0 shares were bought while 48,325 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 826,026 while 229,120 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *