Twitter, Inc. (NYSE:TWTR) shares went down -2.56% in Friday’s session, putting the price tag at $30.01 plus $23.45B in market capitalization. Earlier in the session, the stock traded between $29.42 and $30.74. Trading activity significantly improved as the volume at ready counter increased to 40,550,209 shares versus 21,387,225 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 21,079,773 shares. The stock is now 14.59% above against its bear-market low of $26.19 on October 11, 2018. It has retreated -59.25% since it’s 52-week high of $47.79 reached in June. Now the market price is up 11.52% on the year and up 4.42% YTD.
TWTR’s 50 day simple moving average (SMA 50) price is $32.01 and its 200-day simple moving average (SMA 200) price is $34.08. The company’s stock currently has a total float of 714.32M shares. Its weekly volatility is hovering around 3.67% and felt 3.55% volatility in price over a month. On the upside, the share price will test short term resistance at around $30.69. On a downside, the stock is likely to find some support, which begins at $29.37. The failure to get near-term support could push it to $28.74.
Separately, it has been reported that multiple insider activity took place at Twitter, Inc. (TWTR). Chief Accounting Officer Kaiden Robert sold 9,219 shares for $122,276 in transaction occurred on 2019/02/06. After making this transaction, the Chief Accounting Officer owns a direct stake of 314,829 shares, worth $3,669,503, as per the last closing price. On 2019/02/05 Derella Matthew, VP, Revenue & Partnerships at TWTR, dumped 21,187 shares at an average price of $34.16 per share. The selling total is valued at $12,403,523.
VP, Engineering, Montano Michael had divested 1,250 shares for $474,399 through a trade on 2019/02/05. Following this activity, the insider holds 42,863 shares worth $14,236,714 as of recent close. Wall Street’s most bullish Twitter, Inc. (NYSE:TWTR) analysts are predicting the share price to blow past $45 per share during the next 12 months. The current median share price forecast by them is $33, suggesting that the stock could increase 9.96% in that time frame. The average price target of $33.47 calls for a nearly 11.53% increase in the stock price.
It had seen a positive analyst call from BofA/Merrill, which upgraded the stock from Underperform to Buy on January 10. Analysts at Guggenheim, started covering the stock on December 06 with a Buy rating. Brokerage firm Aegis Capital, looks cautious as they stick to prior recommendation of Buy, in a call on October 29. However, they did change the target price from $40 to $41.
When looking at valuations, Twitter, Inc. (TWTR) has a cheap P/E of 16.44x as compared to industry average of 32.59x. Moreover, it trades for 29.95 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.52x price/book and 8.18x price/sales. Compared to others, Twitter, Inc. is in a different league with regards to profitability, having net margins of 8.1%. To put some perspective around this, the industry’s average net margin is 24.92%. TWTR’s ROE is 4.1%, which is also considerably worse than the industry’s ROE of 20.34%. It’s also very liquid in the near term, with a current ratio of 4.6. The stock has a debt/capital of 0.42.
TWTR last reported earnings on February 07, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $0.31 per share, -98.72% change on the same period last year. That was better than consensus for $0.25. Revenue for the recent quarter stood at $908.84 million, up 24% on last year and above the $866.52 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $742.2 million to $826 million, which should be compared with $641.36 million generated last year. EPS is seen in a range of $0.1 to $0.23, against the $0.1 reported a year ago.