Investors Buy Large Volume of Call Options on Twilio (NYSE:TWLO)

Twilio Inc. (NYSE:TWLO) was the target of some unusual options trading on Monday. Stock investors bought 12,735 call options on the company. This is an increase of 49% compared to the typical volume of 8,535 call options.

Twilio Stock Performance

NYSE:TWLO traded down $0.12 on Monday, reaching $64.54. 621,075 shares of the company’s stock were exchanged, compared to its average volume of 2,695,169. The stock has a fifty day simple moving average of $60.41 and a 200-day simple moving average of $59.48. Twilio has a 52 week low of $49.86 and a 52 week high of $78.16. The company has a debt-to-equity ratio of 0.11, a current ratio of 5.57 and a quick ratio of 5.57. The firm has a market cap of $11.05 billion, a price-to-earnings ratio of -16.12, a P/E/G ratio of 3.59 and a beta of 1.35.

Twilio (NYSE:TWLO) last released its quarterly earnings data on Thursday, August 1st. The technology company reported $0.87 earnings per share for the quarter, beating analysts’ consensus estimates of $0.70 by $0.17. Twilio had a negative net margin of 14.02% and a negative return on equity of 0.22%. The business had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same period in the previous year, the business earned ($0.23) EPS. Twilio’s revenue was up 4.4% compared to the same quarter last year. As a group, sell-side analysts predict that Twilio will post 0.54 earnings per share for the current year.

Analyst Upgrades and Downgrades

TWLO has been the subject of a number of analyst reports. Piper Sandler reissued an “overweight” rating and issued a $83.00 price target (up from $77.00) on shares of Twilio in a research report on Friday, August 2nd. Sanford C. Bernstein raised their price target on shares of Twilio from $68.00 to $70.00 and gave the company a “market perform” rating in a research report on Tuesday, August 27th. Wells Fargo & Company upped their price objective on shares of Twilio from $60.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Friday, August 2nd. Barclays dropped their target price on shares of Twilio from $70.00 to $65.00 and set an “equal weight” rating on the stock in a research report on Monday, August 5th. Finally, JPMorgan Chase & Co. upped their target price on Twilio from $76.00 to $78.00 and gave the company an “overweight” rating in a report on Friday, August 2nd. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating and ten have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $70.52.

Insider Buying and Selling

In other news, insider Dana Wagner sold 591 shares of the company’s stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $60.87, for a total transaction of $35,974.17. Following the transaction, the insider now directly owns 156,737 shares of the company’s stock, valued at $9,540,581.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, insider Dana Wagner sold 591 shares of the business’s stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $60.87, for a total transaction of $35,974.17. Following the completion of the sale, the insider now directly owns 156,737 shares of the company’s stock, valued at $9,540,581.19. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Aidan Viggiano sold 6,586 shares of the company’s stock in a transaction dated Friday, July 5th. The stock was sold at an average price of $56.26, for a total transaction of $370,528.36. Following the completion of the sale, the chief financial officer now owns 188,462 shares in the company, valued at approximately $10,602,872.12. The disclosure for this sale can be found here. In the last three months, insiders have sold 24,755 shares of company stock valued at $1,423,386. 4.50% of the stock is owned by company insiders.

Institutional Trading of Twilio

A number of hedge funds and other institutional investors have recently made changes to their positions in TWLO. Tidal Investments LLC grew its holdings in Twilio by 2.3% during the 1st quarter. Tidal Investments LLC now owns 7,295 shares of the technology company’s stock valued at $446,000 after buying an additional 166 shares in the last quarter. Tokio Marine Asset Management Co. Ltd. grew its stake in Twilio by 3.6% during the first quarter. Tokio Marine Asset Management Co. Ltd. now owns 5,806 shares of the technology company’s stock valued at $355,000 after acquiring an additional 201 shares in the last quarter. Arizona State Retirement System increased its holdings in Twilio by 0.4% during the 2nd quarter. Arizona State Retirement System now owns 47,511 shares of the technology company’s stock worth $2,699,000 after acquiring an additional 205 shares during the period. Royal London Asset Management Ltd. lifted its stake in Twilio by 0.4% in the 2nd quarter. Royal London Asset Management Ltd. now owns 60,074 shares of the technology company’s stock worth $3,413,000 after purchasing an additional 220 shares in the last quarter. Finally, HHM Wealth Advisors LLC boosted its holdings in Twilio by 43.3% in the 2nd quarter. HHM Wealth Advisors LLC now owns 860 shares of the technology company’s stock valued at $49,000 after purchasing an additional 260 shares during the period. 84.27% of the stock is currently owned by institutional investors.

About Twilio

Twilio Inc, together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication.