Twitter, Inc. (NYSE:TWTR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Twitter shares have underperformed the broader market in the past one year. Lack of revenue diversification is a major concern for the company. Slowdown in its user base and revenues coupled with its continuing investments on product development, costs related to international expansion and higher sales & marketing expenses is hurting profitability. Moreover, increasing competition and stringent regulations for social media platforms continue to be overhangs. However, to boost user growth rate and engagement levels, Twitter remains focused on “live” and betting big on Periscope. It is now exploring beyond just news, and the series of live streaming deals are a step in that direction.”
Several other research analysts also recently commented on the stock. Royal Bank Of Canada reissued a “sell” rating and issued a $14.00 price target on shares of Twitter in a report on Sunday. BidaskClub raised shares of Twitter from a “hold” rating to a “buy” rating in a report on Friday, October 6th. Vetr downgraded shares of Twitter from a “strong-buy” rating to a “buy” rating and set a $19.82 price target for the company. in a report on Wednesday, October 4th. KeyCorp reissued a “hold” rating on shares of Twitter in a report on Wednesday, October 4th. Finally, Morgan Stanley reissued an “underweight” rating and issued a $10.00 price target on shares of Twitter in a report on Monday, October 2nd. Sixteen analysts have rated the stock with a sell rating, twenty-two have given a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. Twitter currently has an average rating of “Hold” and an average target price of $15.44.
Twitter (NYSE TWTR) opened at 17.73 on Tuesday. The firm’s market capitalization is $13.00 billion. The firm’s 50-day moving average is $17.34 and its 200 day moving average is $17.19. Twitter has a 12 month low of $14.12 and a 12 month high of $20.88.
Twitter (NYSE:TWTR) last announced its quarterly earnings results on Thursday, July 27th. The social networking company reported $0.08 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.05 by $0.03. Twitter had a negative net margin of 18.25% and a negative return on equity of 2.91%. The firm had revenue of $574.00 million during the quarter, compared to the consensus estimate of $536.63 million. During the same period last year, the firm earned $0.13 EPS. The business’s quarterly revenue was down 4.7% compared to the same quarter last year. On average, analysts expect that Twitter will post $0.33 EPS for the current fiscal year.
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In other news, Director Evan Clark Williams sold 273,300 shares of the company’s stock in a transaction that occurred on Wednesday, August 9th. The shares were sold at an average price of $16.16, for a total value of $4,416,528.00. Following the transaction, the director now owns 2,710,576 shares in the company, valued at $43,802,908.16. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Robert Kaiden sold 4,725 shares of the company’s stock in a transaction that occurred on Tuesday, August 1st. The stock was sold at an average price of $16.06, for a total transaction of $75,883.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,189,030 shares of company stock worth $39,560,018. Insiders own 10.79% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Independence Advisors LLC purchased a new position in shares of Twitter during the second quarter valued at approximately $231,000. Toronto Dominion Bank raised its holdings in shares of Twitter by 21.3% during the second quarter. Toronto Dominion Bank now owns 7,592 shares of the social networking company’s stock valued at $136,000 after purchasing an additional 1,333 shares during the last quarter. Gilder Gagnon Howe & Co. LLC raised its holdings in shares of Twitter by 112.3% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 8,781 shares of the social networking company’s stock valued at $157,000 after purchasing an additional 4,645 shares during the last quarter. Federated Investors Inc. PA purchased a new position in shares of Twitter during the second quarter valued at approximately $174,000. Finally, NEXT Financial Group Inc raised its holdings in shares of Twitter by 6.3% during the second quarter. NEXT Financial Group Inc now owns 11,030 shares of the social networking company’s stock valued at $197,000 after purchasing an additional 650 shares during the last quarter. 49.14% of the stock is owned by hedge funds and other institutional investors.
Twitter Company Profile
Twitter, Inc offers products and services for users, advertisers, developers and data partners. The Company’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Its Twitter is a platform for public self-expression and conversation in real time. Periscope broadcasts can also be viewed through Twitter and on desktop or mobile Web browser.
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