Twitter Inc. (TWTR) Downgraded to “Underperform” at RBC Capital Markets
Twitter Inc. (NYSE:TWTR) was downgraded by investment analysts at RBC Capital Markets from a “sector perform” rating to an “underperform” rating in a report released on Thursday. They currently have a $14.00 target price on the social networking company’s stock, down from their prior target price of $17.00. RBC Capital Markets’ price objective would suggest a potential downside of 24.85% from the company’s previous close. The analysts noted that the move was a valuation call.
A number of other equities research analysts have also recently issued reports on the stock. Vetr raised shares of Twitter from a “buy” rating to a “strong-buy” rating and set a $22.10 target price on the stock in a report on Monday, September 5th. Jefferies Group reaffirmed a “buy” rating and issued a $23.00 target price on shares of Twitter in a report on Monday, August 22nd. Evercore ISI cut shares of Twitter from a “hold” rating to a “sell” rating and dropped their target price for the company from $18.00 to $17.00 in a report on Thursday, August 18th. Zacks Investment Research cut shares of Twitter from a “hold” rating to a “sell” rating in a report on Wednesday, July 20th. Finally, Citigroup Inc. reaffirmed a “neutral” rating and issued a $16.00 target price on shares of Twitter in a report on Tuesday, July 26th. Nine analysts have rated the stock with a sell rating, twenty-nine have assigned a hold rating, seven have given a buy rating and two have issued a strong buy rating to the stock. Twitter has a consensus rating of “Hold” and an average target price of $19.58.
Shares of Twitter (NYSE:TWTR) traded up 20.8986% during mid-day trading on Thursday, hitting $22.5234. The company had a trading volume of 55,673,370 shares. The firm’s 50-day moving average price is $18.86 and its 200 day moving average price is $16.91. Twitter has a one year low of $13.73 and a one year high of $31.87. The company’s market capitalization is $15.77 billion.
Twitter (NYSE:TWTR) last issued its earnings results on Tuesday, July 26th. The social networking company reported $0.13 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.10 by $0.03. The company had revenue of $602 million for the quarter, compared to analysts’ expectations of $606.37 million. Twitter had a negative net margin of 16.51% and a negative return on equity of 6.01%. Twitter’s quarterly revenue was up 19.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.07 EPS. Analysts predict that Twitter will post $0.51 earnings per share for the current fiscal year.
In other Twitter news, insider Robert Kaiden sold 3,604 shares of the business’s stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $20.06, for a total value of $72,296.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Adam Messinger sold 52,914 shares of the business’s stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $16.76, for a total transaction of $886,838.64. The disclosure for this sale can be found here. 10.79% of the stock is currently owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in Twitter by 36.5% in the second quarter. Vanguard Group Inc. now owns 33,938,829 shares of the social networking company’s stock worth $573,906,000 after buying an additional 9,067,613 shares in the last quarter. Norges Bank bought a new position in Twitter during the fourth quarter worth approximately $78,597,000. Commerzbank Aktiengesellschaft FI boosted its position in Twitter by 307.2% in the second quarter. Commerzbank Aktiengesellschaft FI now owns 2,886,736 shares of the social networking company’s stock worth $48,815,000 after buying an additional 2,177,825 shares in the last quarter. Quantitative Investment Management LLC bought a new position in Twitter during the second quarter worth approximately $22,334,000. Finally, Contrarius Investment Management Ltd boosted its position in Twitter by 25.6% in the second quarter. Contrarius Investment Management Ltd now owns 4,147,508 shares of the social networking company’s stock worth $70,134,000 after buying an additional 844,273 shares in the last quarter. 41.87% of the stock is owned by institutional investors and hedge funds.
Twitter, Inc (Twitter) offers products and services for users, advertisers, developers and platform and data partners. The Company’s service is live-live commentary, live connections, live conversations. Its products and services for users include Twitter, and Periscope and Vine. Its Twitter is a platform for public self-expression and conversation in real time.
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