Twilio (NYSE:TWLO) Stock Price Down 6.7% – Here’s Why

Shares of Twilio Inc. (NYSE:TWLO) dropped 6.7% on Friday. The stock traded as low as $258.63 and last traded at $255.0150. 189,283 shares changed hands during trading, a decline of 93% from the average session volume of 2,626,272 shares. The stock had previously closed at $273.40.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Mizuho set a $270.00 target price on shares of Twilio in a research report on Wednesday, August 12th. Wolfe Research raised shares of Twilio to a “buy” rating in a research report on Friday, August 7th. Needham & Company LLC lifted their price objective on shares of Twilio from $250.00 to $280.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Monness Crespi & Hardt lifted their price objective on shares of Twilio from $246.00 to $270.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Finally, Citigroup reissued a “market outperform” rating on shares of Twilio in a report on Thursday, August 27th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $267.78.

Twilio Stock Performance

The stock has a 50 day simple moving average of $253.65 and a 200 day simple moving average of $207.87. The company has a current ratio of 4.62, a quick ratio of 4.62 and a debt-to-equity ratio of 0.11. The stock has a market cap of $37.00 billion, a P/E ratio of 33.90, a price-to-earnings-growth ratio of 5.56 and a beta of 1.35.

Twilio (NYSE:TWLO) last released its earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.32 by $0.15. The firm had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.43 billion. Twilio had a return on equity of 5.09% and a net margin of 20.61%. The company’s revenue was up 22.0% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 EPS. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. On average, equities analysts expect that Twilio Inc. will post 3.12 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Khozema Shipchandler sold 14,442 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $291.03, for a total transaction of $4,203,055.26. Following the completion of the sale, the chief executive officer owned 178,863 shares of the company’s stock, valued at $52,054,498.89. This represents a 7.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andrew Stafman sold 500,000 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $247.08, for a total transaction of $123,540,000.00. Following the sale, the director owned 120,000 shares in the company, valued at $29,649,600. The trade was a 80.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 538,818 shares of company stock valued at $134,833,645 over the last quarter. 0.21% of the stock is owned by company insiders.

Institutional Trading of Twilio

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its stake in Twilio by 10.8% in the first quarter. Royal Bank of Canada now owns 3,261,235 shares of the technology company’s stock valued at $410,330,000 after acquiring an additional 316,858 shares during the last quarter. Pictet Asset Management Holding SA lifted its stake in Twilio by 17.6% during the first quarter. Pictet Asset Management Holding SA now owns 2,331,471 shares of the technology company’s stock worth $293,237,000 after purchasing an additional 349,131 shares during the last quarter. Artemis Investment Management LLP lifted its stake in Twilio by 58.9% during the third quarter. Artemis Investment Management LLP now owns 588,018 shares of the technology company’s stock worth $171,972,000 after purchasing an additional 217,952 shares during the last quarter. Atreides Management LP boosted its holdings in shares of Twilio by 28.5% in the 1st quarter. Atreides Management LP now owns 921,602 shares of the technology company’s stock valued at $115,956,000 after purchasing an additional 204,656 shares in the last quarter. Finally, KBC Group NV boosted its holdings in shares of Twilio by 1.4% in the 1st quarter. KBC Group NV now owns 790,548 shares of the technology company’s stock valued at $99,466,000 after purchasing an additional 11,014 shares in the last quarter. Institutional investors own 84.27% of the company’s stock.

Twilio Company Profile

Twilio Inc is a communications technology company that provides a cloud-based platform for businesses to engage with customers through digital channels. Its software and application programming interfaces (APIs) support communications capabilities such as voice calling, messaging, video, email, authentication and contact-center interactions.

The company’s offerings include programmable communications services, customer data and engagement tools, and contact-center solutions. Twilio also provides email services through SendGrid and customer data platform capabilities through Segment, which it acquired in 2020.