Zacks Research Downgrades Twilio (NYSE:TWLO) to Hold

Twilio (NYSE:TWLO) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday, Zacks reports.

Several other equities analysts have also issued reports on TWLO. Wells Fargo & Company boosted their price target on shares of Twilio from $225.00 to $275.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Morgan Stanley reissued an “overweight” rating and issued a $261.00 target price 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 stock a “neutral” rating in a research report on Friday, August 7th. UBS Group boosted their price objective on Twilio from $200.00 to $285.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Finally, Mizuho set a $270.00 target price on shares of Twilio in a report on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $249.68.

Twilio Stock Performance

TWLO stock opened at $225.44 on Monday. Twilio has a twelve month low of $98.44 and a twelve month high of $258.35. The company has a quick ratio of 4.62, a current ratio of 4.62 and a debt-to-equity ratio of 0.11. The company has a market cap of $34.62 billion, a P/E ratio of 31.40, a price-to-earnings-growth ratio of 4.83 and a beta of 1.40. The business’s fifty day moving average is $216.98 and its 200-day moving average is $179.79.

Twilio (NYSE:TWLO) last posted its earnings results on Thursday, August 6th. The technology company reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.15. The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.43 billion. Twilio had a return on equity of 5.09% and a net margin of 20.61%.The company’s revenue for the quarter was up 22.0% compared to the same quarter last year. During the same period in the previous year, the company earned $1.19 EPS. Twilio has set its Q3 2026 guidance at 1.420-1.470 EPS. Equities research analysts forecast that Twilio will post 3.08 EPS for the current year.

Insider Buying and Selling

In related news, Director Andrew Stafman sold 500,000 shares of the firm’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 completion of the transaction, the director owned 120,000 shares of the company’s stock, valued at approximately $29,649,600. This trade represents a 80.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Aidan Viggiano sold 9,093 shares of the stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $201.25, for a total transaction of $1,829,966.25. Following the transaction, the chief financial officer owned 118,252 shares of the company’s stock, valued at approximately $23,798,215. This represents a 7.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 547,354 shares of company stock worth $133,284,825. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. SHP Wealth Management bought a new position in Twilio in the fourth quarter valued at approximately $26,000. Zions Bancorporation National Association UT bought a new stake in shares of Twilio during the 4th quarter worth approximately $29,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Twilio in the 4th quarter valued at approximately $29,000. Osbon Capital Management LLC acquired a new stake in shares of Twilio in the 4th quarter valued at approximately $30,000. Finally, Ascentis Independent Advisors bought a new position in shares of Twilio in the first quarter valued at $33,000. 84.27% of the stock is owned by institutional investors and hedge funds.

About Twilio

Twilio Inc (NYSE: TWLO) is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio’s platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.

The company’s product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.