Twitter, Inc. (TWTR) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Twitter, Inc. (NYSE:TWTR) from a hold rating to a sell rating in a research report report published on Monday.

According to Zacks, “Twitter reported fourth quarter 2016 results wherein adjusted loss was narrower than expected but revenues missed the Zacks Consensus Estimate. Year over year, revenues grew just 1%. Moreover, ad revenues declined year over year. Twitter remains in trouble with just 319 million users. Revenue growth is decelerating and profits are yet to be earned. Exodus at the top level management is adding to woes. Plus, costs continue to rise as Twitter invests in product development. Moreover, stiff competition for ad dollars is another cause of worry. To battle odds, Twitter is making user friendly changes to the platform and is focused on boosting live  content on it platform . It is also shedding noncore operations. However, these are yet to bring any marked improvement in Twitter’s performance. Shares have largely underperformed the broader market in the past one year. “

Other research analysts also recently issued reports about the company. Bank of America Corporation cut their price objective on Twitter from $16.00 to $14.50 and set an underperform rating for the company in a research note on Friday. Goldman Sachs Group, Inc. (The) cut their price objective on Twitter from $22.00 to $20.00 and set a buy rating for the company in a research note on Friday. Atlantic Securities downgraded Twitter from a neutral rating to an underweight rating and cut their price objective for the company from $16.00 to $13.00 in a research note on Friday. Deutsche Bank AG downgraded Twitter from a buy rating to a hold rating and cut their price objective for the company from $22.00 to $15.00 in a research note on Friday. Finally, SunTrust Banks, Inc. cut their price objective on Twitter to $16.00 and set a hold rating for the company in a research note on Friday. Seventeen research analysts have rated the stock with a sell rating, twenty-four have assigned a hold rating, four have given a buy rating and one has issued a strong buy rating to the company’s stock. Twitter presently has a consensus rating of Hold and an average target price of $16.09.

Analyst Recommendations for Twitter (NYSE:TWTR)

Shares of Twitter (NYSE:TWTR) traded up 2.72% during mid-day trading on Monday, hitting $16.24. 7,328,507 shares of the stock traded hands. Twitter has a 1-year low of $13.73 and a 1-year high of $25.25. The company’s market capitalization is $11.59 billion. The company’s 50-day moving average price is $16.99 and its 200 day moving average price is $18.37.

Twitter (NYSE:TWTR) last announced its quarterly earnings data on Thursday, February 9th. The social networking company reported $0.16 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.12 by $0.04. The company earned $717 million during the quarter, compared to the consensus estimate of $740.17 million. Twitter had a negative return on equity of 4.59% and a negative net margin of 18.06%. The firm’s revenue was up .9% on a year-over-year basis. During the same period in the previous year, the company posted $0.16 EPS. Equities research analysts forecast that Twitter will post $0.37 EPS for the current fiscal year.

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In related news, insider Robert Kaiden sold 3,988 shares of Twitter stock in a transaction that occurred on Thursday, December 1st. The stock was sold at an average price of $18.19, for a total transaction of $72,541.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 10.79% of the stock is currently owned by company insiders.

Hedge funds have recently modified their holdings of the stock. Amerigo Asset Management acquired a new stake in shares of Twitter during the third quarter valued at approximately $100,874,000. Commerzbank Aktiengesellschaft FI raised its stake in shares of Twitter by 307.2% in the second quarter. Commerzbank Aktiengesellschaft FI now owns 2,886,736 shares of the social networking company’s stock valued at $48,815,000 after buying an additional 2,177,825 shares during the last quarter. First Eagle Investment Management LLC raised its stake in shares of Twitter by 1,213.0% in the third quarter. First Eagle Investment Management LLC now owns 2,127,000 shares of the social networking company’s stock valued at $49,027,000 after buying an additional 1,965,000 shares during the last quarter. Highland Capital Management LP raised its stake in shares of Twitter by 45.4% in the fourth quarter. Highland Capital Management LP now owns 6,169,150 shares of the social networking company’s stock valued at $100,556,000 after buying an additional 1,926,150 shares during the last quarter. Finally, Sumitomo Mitsui Asset Management Company LTD raised its stake in shares of Twitter by 3,560.6% in the third quarter. Sumitomo Mitsui Asset Management Company LTD now owns 1,404,226 shares of the social networking company’s stock valued at $32,367,000 after buying an additional 1,365,865 shares during the last quarter. 44.45% of the stock is currently owned by institutional investors.

About Twitter

Twitter, Inc (Twitter) offers products and services for users, advertisers, developers and platform and data partners. The Company’s service is live-live commentary, live connections, live conversations. Its products and services for users include Twitter, and Periscope and Vine. Its Twitter is a platform for public self-expression and conversation in real time.

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