Twitter Inc. (TWTR) Volatility Spurs A Quest For Clarity


Morgan Stanley Investment Managem.. recently announced the acquisition of new stake in Twitter Inc. (NYSE:TWTR). The institutional investor has increased its shareholding in the Communication Services company by 2.79% to 45.95 million shares with purchase of 1.25 million shares. This fresh investment now brings its stake to 5.86% valued currently at $1.67 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.26 million to 35.91 million shares. And Aristotle Capital Management LLC has lifted its position by 3.63% or 0.59 million shares – to 16.73 million shares.

With over 7.42 million Twitter Inc. (TWTR) shares trading Monday and a closing price of $40.58 on the day, the dollar volume was approximately $301.12 million. The shares have shown a positive weekly performance of 0.22% and its price on 08/31/20 lost nearly -1.19%. Currently, there are 785.91M common shares owned by the public and among those 762.28M shares have been available to trade.

The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $19.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Twitter Inc. stock is 2.80 for the next 12 months. The average price target is -9.97% below its last price level and a downside to the estimated low will see the stock lose -113.58% over that period. But an upside of 18.84% will see the stock hit the forecast high price target while mean target price for the stock is $36.00.

Insiders at the company have transacted a total of 118 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 28 of these insider trades were purchases, accounting for 1,381,951 shares. Insider sales of the common stock occurred on 90 occasions, with total insider shares sold totaling 1,195,236 shares.

The top 3 mutual fund holders in Twitter Inc. are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 21.2 million shares of the company’s stock, all valued at over $771.81 million. The company sold 39012.0 shares recently to bring their total holdings to about 2.70% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.14 million shares to see its total holdings shrink to 18.29 million shares valued at over $665.89 million and representing 2.33% of the shares outstanding. Vanguard 500 Index Fund sold 87442.0 shares to bring its total holdings to over 16.18 million shares at a value of $589.08 million. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of Twitter Inc. (NYSE: TWTR) opened at $40.99, down -$0.08 from a prior closing price of $41.07. However, the script later closed the day at $40.58, down -1.19%. The company’s stock has a 5-day price change of 0.22% and 25.79% over the past three months. TWTR shares are trading 26.61% year to date (YTD), with the 12-month market performance down to -4.85% lower. It has a 12-month low price of $20.00 and touched a high of $45.85 over the same period. Currently, 7.42 million shares have been traded, compared to an average intraday trading volume of 20.63 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.55%, 12.76%, and 25.53% respectively.

Institutional ownership of Twitter Inc. (NYSE: TWTR) shares accounts for 74.40% of the company’s 785.91M shares outstanding. Mutual fund holders own 36.24%, while other institutional holders and individual stakeholders account for 38.87% and 11.98% respectively.

It has a market capitalization of $31.57B and a beta (3y monthly) value of 0.87. The earnings-per-share (ttm) stands at -$1.57. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.58% over the week and 2.91% over the month.

Analysts forecast that Twitter Inc. (TWTR) will achieve an EPS of $0.05 for the current quarter, $0.22 for the next quarter and $0.73 for 2021. The lowest estimate earnings-per-share for the quarter is $0.02 while analysts give the company a high EPS estimate of $0.13. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 19.60%, and 183.90% over the next financial year.

Looking at the support for the TWTR, a number of firms have released research notes about the stock. Canaccord Genuity stated their Hold rating for the stock in a research note on July 24, 2020, with the firm’s price target at $32-$40. Citigroup coverage for the Twitter Inc. (TWTR) stock in a research note released on June 22, 2020 offered a Neutral rating with a price target of $36. Pivotal Research Group was of a view on May 01, 2020 that the stock is Hold, while Mizuho gave the stock Neutral rating on April 27, 2020, issuing a price target of $35- $28. JP Morgan on their part issued Neutral rating on April 16, 2020.


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