What Are The Risk Factors For Twilio Inc. (TWLO)?

As of Thursday close, Twilio Inc.’s (NYSE:TWLO) stock was up $0.5, moving up 0.51 percent to $98.19. The average number of shares traded per day over the past five days has been 4,104,620 shares. 5 times new highs have been achieved over the past 5 days, with a $12.59 gain in that time frame. In the last twenty days, the average volume was 3,352,105, while in the previous 50 days, it was 3,458,356.

Since last month, TWLO stock rose 10.70%. Shares of the company fell to $78.42 on 07/26/22, the lowest level in the past month. A 52-week high of $382.75 was reached on 01/03/22 after having rallying from a 52-week low of $77.14. Since the beginning of this year, TWLO’s stock price has dropped by -62.71% or -$165.15, and marked a new high 1 time. However, the stock has declined by -74.35% since its 52-week high.

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Twilio Inc. (TWLO) last reported insider trading activity 21 days ago on Jul 15. Manor Eyal, the Chief Product Officer of the company, disposed of 853 shares for $82.69 on Jul 15. It resulted in a $70,535 divestment by the insider. Shipchandler Khozema sold 1,454 shares at an average price of $90.21 on Jul 06. The insider now owns 90,000 shares following the transaction. On Jun 30, Chief Operating Officer Shipchandler Khozema sold 1,765 shares at $81.10 apiece. The transaction was valued at $143,148.

Valuation Metrics

The stock’s beta is 1.55. Besides these, the trailing price-to-sales (P/S) ratio of 5.68, the price-to-book (PB) ratio of 1.63.

Financial Health

In the three months ended March 30, Twilio Inc.’s quick ratio stood at 8.10, while its current ratio was 8.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.09, and the total debt-to-equity ratio was 0.09. On the profitability front, the trailing twelve-month gross margin is 48.50% percent. In the year ended March 30, operating margins totaled -29.90%. Based on annual data, TWLO earned $1.39 billion in gross profit and brought in $2.84 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -7.50%. Return on equity (ROE) for the past 12 months was -8.80%.

In Twilio Inc.’s quarter-end financial report for March 30, it reported total debt of $986.24 million against cash and short-term investments of $3.61 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. TWLO’s revenue rose 32.6% to $842.74 million during the quarter, while net income inched up to $875.36 million. While analysts expected Twilio Inc. to report -$0.22 quarterly earnings, the actual figure was $0 per share. During the quarter, the company generated -$126.03 million in EBITDA. The liabilities of Twilio Inc. were 1.97 billion at the end of its most recent quarter ended March 30, and its total debt was $1.27 billion. The value of shareholders’ equity is $181.68 million.

Technical Picture

This quick technical analysis looks at Twilio Inc.’s (TWLO) price momentum. With a historical volatility rate of 74.92%, the RSI 9-day stood at 66.87% on 04 August.

With respect to its five-day moving average, the current Twilio Inc. price is up by +14.71% percent or $12.59. At present, TWLO shares trade +4.93% above its 20-day simple moving average and -25.88% percent below its 100-day simple moving average. However, the stock is currently trading approximately -1.97% below its SMA50 and -72.82% below its SMA200.

Stochastic coefficient K was 89.06% and Stochastic coefficient D was 72.81%, while ATR was 5.69. Given the Stochastic reading of 97.63% for the 14-day period, the RSI (14) reading has been calculated as 59.39%. As of today, the MACD Oscillator reading stands at 7.09, while the 14-day reading stands at 6.61.

Analyst Ratings

Twilio Inc. downgraded its rating on Twilio Inc. (NYSE: TWLO) to a Neutral in a note to investors on July 25, 2022. The analysts firm previously had an Outperform rating on the stock.Twilio Inc. (TWLO) has been rated Buy by analysts. According to 0 brokerage firms, TWLO is a sell, and 5 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Twilio Inc. stock as buy, with 26 recommending it as overweight.

With a median target price of $180.00, the current consensus forecast for the stock is $91.00 – $260.00. Based on these forecasts, analysts predict Twilio Inc. (TWLO) will achieve an average price target of $175.72.


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