Zacks Investment Research Lowers Twitter (TWTR) to Hold

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Zacks Investment Research cut shares of Twitter (NYSE:TWTR) from a buy rating to a hold rating in a research report report published on Tuesday, Zacks.com reports.

According to Zacks, “Twitter continues to add features and ramp up its security measures to boost engagement levels. The company’s new in-app camera feature strengthens its competitive position against the likes of Snapchat and Facebook’s Instagram. Twitter is also benefiting from strong growth in international markets and video advertisements. Growing adoption of video ad products like Video Website Cards & Video App Cards will drive the top line. Moreover, Twitter remains focused on live and is now exploring beyond just news. The series of live streaming deals are a step in that direction. Meanwhile, estimates have been stable ahead of the Q1 earnings release. The company has delivered positive earnings surprises in the recent quarters. However, its shares have underperformed the industry in the past year. Lack of revenue diversification is a major concern, as Twitter is significantly dependent on advertising.”

Several other equities analysts have also commented on TWTR. Cascend Securities reaffirmed a buy rating and issued a $45.00 price objective on shares of Twitter in a research report on Wednesday, March 27th. JPMorgan Chase & Co. reissued a buy rating and set a $44.00 price target on shares of Twitter in a research report on Thursday, January 10th. ValuEngine lowered shares of Twitter from a buy rating to a hold rating in a research report on Friday, February 8th. Wedbush set a $37.00 price target on shares of Twitter and gave the stock a hold rating in a research report on Friday, February 8th. Finally, Summit Insights lowered shares of Twitter from a buy rating to a hold rating in a research report on Friday, February 8th. Two research analysts have rated the stock with a sell rating, twenty have assigned a hold rating and sixteen have given a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus price target of $35.79.

Shares of Twitter stock opened at $34.46 on Tuesday. The company has a current ratio of 4.69, a quick ratio of 4.69 and a debt-to-equity ratio of 0.26. Twitter has a 1 year low of $26.19 and a 1 year high of $47.79. The stock has a market cap of $26.65 billion, a price-to-earnings ratio of 62.65, a price-to-earnings-growth ratio of 3.09 and a beta of 0.50.

Twitter (NYSE:TWTR) last issued its earnings results on Thursday, February 7th. The social networking company reported $0.31 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.16 by $0.15. Twitter had a net margin of 39.63% and a return on equity of 8.08%. The company had revenue of $908.84 million for the quarter, compared to analysts’ expectations of $864.87 million. During the same period in the prior year, the business earned $0.19 EPS. The firm’s quarterly revenue was up 24.2% on a year-over-year basis. As a group, equities research analysts forecast that Twitter will post 0.46 earnings per share for the current fiscal year.

In other Twitter news, VP Michael Montano sold 1,250 shares of Twitter stock in a transaction on Tuesday, January 22nd. The shares were sold at an average price of $32.97, for a total transaction of $41,212.50. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Evan Clark Williams sold 24,643 shares of Twitter stock in a transaction on Tuesday, January 29th. The stock was sold at an average price of $31.81, for a total transaction of $783,893.83. Following the sale, the director now directly owns 1,142,442 shares in the company, valued at approximately $36,341,080.02. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 782,189 shares of company stock worth $24,220,864. 6.62% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in Twitter by 2.7% during the 3rd quarter. Vanguard Group Inc. now owns 70,255,589 shares of the social networking company’s stock worth $1,999,474,000 after purchasing an additional 1,830,649 shares during the last quarter. Vanguard Group Inc raised its holdings in shares of Twitter by 2.7% during the 3rd quarter. Vanguard Group Inc now owns 70,255,589 shares of the social networking company’s stock worth $1,999,474,000 after acquiring an additional 1,830,649 shares during the period. Northern Trust Corp raised its holdings in shares of Twitter by 3.9% during the 4th quarter. Northern Trust Corp now owns 10,706,757 shares of the social networking company’s stock worth $307,712,000 after acquiring an additional 397,903 shares during the period. Geode Capital Management LLC raised its holdings in shares of Twitter by 6.7% during the 4th quarter. Geode Capital Management LLC now owns 9,133,563 shares of the social networking company’s stock worth $262,033,000 after acquiring an additional 569,560 shares during the period. Finally, Norges Bank purchased a new position in shares of Twitter during the 4th quarter worth $202,600,000. 68.37% of the stock is currently owned by institutional investors.

About Twitter

Twitter, Inc operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others.

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