Twitter (TWTR) Downgraded by Zacks Investment Research to Hold
Twitter (NYSE:TWTR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Twitter reported strong fourth-quarter 2017 results. Shares have also outperformed the industry in the past one year. The company's initiatives to make tweeting easier for people and more expressive are expected to boost user growth rate and engagement levels. Growing adoption of video ad products coupled with Twitter’s focus on live video streaming will bring more ad dollars. Besides, growth in Japan and other Asia Pacific markets is a positive. Moreover, aggressive cost cutting also helped Twitter to achieve long term EBITDA margin target. However, lack of revenue diversification is a major concern for the company. Increasing competition and stringent regulations for social media platforms continue to remain overhangs.”
Other equities analysts also recently issued research reports about the stock. Cantor Fitzgerald restated a “hold” rating and issued a $16.00 price objective on shares of Twitter in a research note on Monday, October 23rd. Vetr downgraded shares of Twitter from a “strong-buy” rating to a “hold” rating and set a $19.88 price objective for the company. in a research note on Thursday, October 26th. Canaccord Genuity restated a “hold” rating and issued a $15.00 price objective on shares of Twitter in a research note on Friday, October 20th. Barclays upped their price objective on shares of Twitter from $16.00 to $18.00 and gave the company an “underweight” rating in a research note on Friday, October 27th. Finally, Citigroup upgraded shares of Twitter from a “sell” rating to a “neutral” rating and upped their price objective for the company from $19.90 to $20.00 in a research note on Monday, November 6th. Eight equities research analysts have rated the stock with a sell rating, twenty-two have given a hold rating and seven have assigned a buy rating to the company. Twitter currently has a consensus rating of “Hold” and a consensus target price of $22.79.
Twitter (NYSE:TWTR) last released its quarterly earnings data on Thursday, February 8th. The social networking company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.05. Twitter had a negative net margin of 4.42% and a positive return on equity of 0.79%. The company had revenue of $731.60 million during the quarter, compared to the consensus estimate of $686.12 million. During the same quarter in the prior year, the firm posted $0.11 earnings per share. Twitter’s revenue for the quarter was up 2.0% on a year-over-year basis. equities research analysts forecast that Twitter will post 0.1 EPS for the current fiscal year.
In other Twitter news, Director Evan Clark Williams sold 1,982,985 shares of the stock in a transaction dated Wednesday, November 29th. The shares were sold at an average price of $21.12, for a total value of $41,880,643.20. Following the completion of the transaction, the director now directly owns 2,401,747 shares of the company’s stock, valued at $50,724,896.64. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Robert Kaiden sold 12,734 shares of the stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $24.99, for a total transaction of $318,222.66. The disclosure for this sale can be found here. Insiders have sold 2,660,011 shares of company stock valued at $58,164,211 over the last three months. 9.18% of the stock is currently owned by corporate insiders.
Institutional investors have recently modified their holdings of the business. Avestar Capital LLC purchased a new position in Twitter in the fourth quarter valued at about $103,000. Balentine LLC increased its holdings in Twitter by 86.6% in the third quarter. Balentine LLC now owns 6,822 shares of the social networking company’s stock valued at $115,000 after buying an additional 3,167 shares in the last quarter. Toronto Dominion Bank increased its holdings in Twitter by 21.3% in the second quarter. Toronto Dominion Bank now owns 7,592 shares of the social networking company’s stock valued at $136,000 after buying an additional 1,333 shares in the last quarter. Marcus Capital LLC purchased a new position in Twitter in the fourth quarter valued at about $212,000. Finally, Telemus Capital LLC purchased a new position in Twitter in the fourth quarter valued at about $214,000. 49.26% of the stock is owned by institutional investors.
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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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