Twilio Inc. (TWLO): A Stock to Consider on Insider Buying

The insider sell/buy ratio of Twilio Inc. (NYSE:TWLO) is recorded at 1.72, pointing to bearish feelings about the stock among corporate executives and directors. TWLO recorded 31 sales on the open market in the last three months. They sold nearly 222,642 shares while purchases amounted to 129,523 shares that period. Looking even further back to 12 months, corporate insiders offloaded 3,901,591 shares when buyers snapped up 3,865,061 shares. The 12-month’s totals signify about a 1.01-to-1 sell/buy ratio.

Hu George parted with a total of 7.8 thousand shares of Twilio Inc. (TWLO) at average share price of $85.39. This insider trade in the company took place on 01/03/2019. The total for the sales was set at $666.04 thousand. After this transaction, the COO account balance stood at 179.88 thousand shares. The stock grew 13.4 percent since that insider sale. On 12/31/2018, Hu George, COO, sold 10 thousand shares at a price per share of $87.27. This removed 872.7 thousand shares from the insider’s fortune and the stock saw a 10.95 percent rally in value since the news became public. This transaction left 179.88 thousand shares in the COO account.

On 12/18/2018, CEO, 10% Owner Lawson Jeff performed a sale transaction worth $1.8 million. This sale at $86.31 each has eliminated 20.83 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 12.19 percent increase since the transaction was reported. The insider now is left with 220.36 thousand shares remaining in the account. Smith Karyn, who performs the General Counsel and Secretary job, sold 3.52 thousand shares for $304.06 thousand. The disposal occurred on 12/18/2018 was priced at $86.38 per share. The share price soared 12.1 percent since the reporting date. Smith Karyn now left with a stake of 45.52 thousand TWLO stock worth $4.41 million after the insider selling.

The 12-month median price target for Twilio Inc. (TWLO) assigned by the analysts stands at $97, which represents a return potential of 0.18 percent when compared to the closing price of the stock of $96.83 on Friday, January 11. The lowest price target for the stock is $66 — slightly more than -31.84 percent from TWLO’s current share price. The stock will probably climb -1.13 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $117-month high price target. This represents a whopping 20.83 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 57.43 on daily chart, which may remain a cause for concern. If the price breaks below $92 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $100.47 mark may result into a pull-back move towards $104.12 level. The stock is currently hovering around the first support level of $94.41. Below this, the next support is placed in the zone of $92. Till the time, the TWLO stock trades above this level, bulls have nothing to fear.

Shares of Twilio Inc. (TWLO) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry TWLO operates in has an average P/E of 34.47. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 17.15 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.47. 53.7 percent is the gross profit margin for Twilio Inc. and operating margin sits at -16.3 percent. Along with this, the net profit margin is -16.7 percent.

On 11th of January, Twilio Inc. (NYSE:TWLO) shares ended higher after a volatile session. The shares accumulated 0.63 points or 0.65 percent at $96.83 with a heavy trade volume of 6.436 million shares. After opening the session at $96, the shares went as high as $101.7 and as low as $95.6384, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $9.62 billion and now has 99.37 million shares outstanding. Twilio Inc. (TWLO) stock has gained 4.43 percent of market value in 21 trading days.

In last reported earnings results, TWLO earned $0.07 per share, better than the $0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $169M, better than the $150M analysts expected. Earnings are estimated to increase by 10.2 percent this year, 48.15 percent next year and continue to increase by 8 percent annually for the next 5 years. Investors will get their next glimpse of TWLO’s Q4 earnings on February 05. Analysts are forecasting revenue to climb 60.5 percent to $185M in the next fiscal quarter, while earnings are seen soaring by nearly -233.33 percent to $0.04 per share. History has shown that shares in Twilio Inc. have gone up on 7 different earnings reaction days and are predicted to add 0.13 percent when the company reports upcoming earnings.

TWLO stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.98 a share in the trailing twelve months. The stock’s value has surged 8.43 percent year to date (YTD) against a rise of 277.65 percent in 12 month’s time. The company’s shares still trade -4.08 percent away from its 1-year high of $100.95 and 316.47 percent up from 52-week low of $23.25. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.