Twilio (NYSE:TWLO) Shares Gap Down – Here’s Why

Twilio Inc. (NYSE:TWLO)’s stock price gapped down prior to trading on Friday. The stock had previously closed at $299.66, but opened at $286.68. Twilio shares last traded at $282.7220, with a volume of 458,555 shares trading hands.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Weiss Ratings raised Twilio from a “hold (c)” rating to a “buy (b-)” rating in a research report on Monday, August 17th. UBS Group boosted their target price on Twilio from $200.00 to $285.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Jefferies Financial Group restated a “buy” rating and issued a $240.00 price target on shares of Twilio in a research note on Friday, August 7th. Piper Sandler raised their price target on Twilio from $192.00 to $247.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Finally, BTIG Research reaffirmed a “buy” rating and set a $285.00 price objective on shares of Twilio in a research report on Friday, September 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Twilio presently has a consensus rating of “Moderate Buy” and an average price target of $250.39.

Twilio Stock Down 7.1%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.62 and a current ratio of 4.62. The stock has a market cap of $42.77 billion, a P/E ratio of 38.87, a P/E/G ratio of 5.84 and a beta of 1.40. The stock’s fifty day simple moving average is $226.52 and its 200-day simple moving average is $191.06.

Twilio (NYSE:TWLO) last announced its earnings results on Thursday, August 6th. The technology company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.32 by $0.15. Twilio had a net margin of 20.61% and a return on equity of 5.09%. The company had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.43 billion. During the same period last year, the firm earned $1.19 earnings per share. The business’s revenue for the quarter was up 22.0% on a year-over-year basis. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. As a group, research analysts forecast that Twilio Inc. will post 3.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Twilio news, CFO Aidan Viggiano sold 9,093 shares of Twilio stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $201.25, for a total value of $1,829,966.25. Following the completion of the transaction, the chief financial officer directly owned 118,252 shares of the company’s stock, valued at $23,798,215. The trade was a 7.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew Stafman sold 500,000 shares of the company’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $247.08, for a total value of $123,540,000.00. Following the sale, the director owned 120,000 shares of the company’s stock, valued at approximately $29,649,600. The trade was a 80.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 547,354 shares of company stock worth $133,284,825 in the last 90 days. Company insiders own 0.21% of the company’s stock.

Institutional Trading of Twilio

Institutional investors and hedge funds have recently made changes to their positions in the company. CX Institutional increased its position in shares of Twilio by 9.5% during the 2nd quarter. CX Institutional now owns 701 shares of the technology company’s stock valued at $145,000 after purchasing an additional 61 shares during the last quarter. Affinity Capital Advisors LLC grew its position in Twilio by 2.6% during the second quarter. Affinity Capital Advisors LLC now owns 2,869 shares of the technology company’s stock valued at $600,000 after buying an additional 74 shares during the period. Wedmont Private Capital grew its position in Twilio by 2.1% during the second quarter. Wedmont Private Capital now owns 3,691 shares of the technology company’s stock valued at $792,000 after buying an additional 75 shares during the period. Everhart Financial Group Inc. grew its position in Twilio by 4.3% during the second quarter. Everhart Financial Group Inc. now owns 1,896 shares of the technology company’s stock valued at $391,000 after buying an additional 79 shares during the period. Finally, SJS Investment Consulting Inc. increased its holdings in Twilio by 27.7% during the first quarter. SJS Investment Consulting Inc. now owns 429 shares of the technology company’s stock valued at $54,000 after buying an additional 93 shares during the last quarter. Institutional investors own 84.27% of the company’s stock.

Twilio Company Profile

Twilio Inc is a cloud communications and customer engagement technology company that provides application programming interfaces (APIs) and software tools for businesses. Its platform enables organizations to integrate communications capabilities such as voice calls, text messaging, email, video, authentication and customer support into websites, mobile applications and other digital products.

Twilio’s offerings include programmable communications services, customer data and analytics tools through Segment, and contact center software through Twilio Flex.