“It is not easy in this type of environment to get a 28 percent gain and 1200 basis points gain versus the S&P in this environment and I don’t want to risk having it taken away,” Moas wrote in a note.According to the analyst, the stock will go to high-20s in the event of a deal. If there is no deal, it could fall back and retest the mid -eens low that it touched in the second quarter. Related Link: Cowen & Co.’s Social Media Analyst Talks About Twitter’s “Well Publicized” Woes”[S]o there is nothing really to get excited about here with a 30 percent upside at the 30 percent downside. I prefer to take this money put it into another name that has 30 percent upside without the downside risk,” Moas continued.The market is speculating Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)’s Google, Oracle Corporation (NYSE: ORCL), International Business Machines Corp. (NYSE: IBM) and salesforce.com, inc. (NYSE: CRM) as potential acquirers. Moas noted, “It looks like a crap-shoot to me right now at $22.”Moas continued that Twitter is now trading at a high multiple despite excluding the large cash position on its balance sheet. “There is a small chance that a bidding war could take place and drive Twitter above $30 but I don’t think that that is a likely outcome. The market has already priced in the risk-reward on a deal happening or not happening,,” Standpoint Research’s analyst wrote.
A number of other equities research analysts have also weighed in on the stock. Canaccord Genuity reissued a buy rating on shares of Twitter in a report on Sunday. Vetr raised shares of Twitter from a buy rating to a strong-buy rating and set a $22.10 target price on the stock in a report on Monday, September 5th. Jefferies Group reaffirmed a buy rating and issued a $23.00 price objective on shares of Twitter in a research note on Monday, August 22nd. Evercore ISI lowered shares of Twitter from a hold rating to a sell rating and reduced their price objective for the company from $18.00 to $17.00 in a research note on Thursday, August 18th. Finally, Zacks Investment Research lowered shares of Twitter from a hold rating to a sell rating in a research note on Wednesday, July 20th. Fourteen investment analysts have rated the stock with a sell rating, twenty-five have assigned a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $19.61.
Shares of Twitter (NYSE:TWTR) opened at 22.96 on Monday. The firm has a 50-day moving average of $19.42 and a 200 day moving average of $17.06. Twitter has a 52 week low of $13.73 and a 52 week high of $31.87. The firm’s market capitalization is $16.08 billion.
Twitter (NYSE:TWTR) last posted its earnings results on Tuesday, July 26th. The social networking company reported $0.13 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.10 by $0.03. Twitter had a negative net margin of 16.51% and a negative return on equity of 6.01%. The firm had revenue of $602 million for the quarter, compared to analyst estimates of $606.37 million. During the same period in the previous year, the firm posted $0.07 EPS. The company’s revenue for the quarter was up 19.9% compared to the same quarter last year. On average, equities analysts predict that Twitter will post $0.51 earnings per share for the current fiscal year.
In related news, CAO Robert Kaiden sold 12,990 shares of Twitter stock in a transaction on Monday, August 1st. The shares were sold at an average price of $16.76, for a total value of $217,712.40. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Adam Messinger sold 52,914 shares of Twitter stock in a transaction on Monday, August 1st. The shares were sold at an average price of $16.76, for a total transaction of $886,838.64. The disclosure for this sale can be found here. 10.79% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in the stock. Swiss National Bank boosted its stake in Twitter by 3.7% in the second quarter. Swiss National Bank now owns 1,564,600 shares of the social networking company’s stock valued at $26,457,000 after buying an additional 56,500 shares during the period. State Board of Administration of Florida Retirement System boosted its stake in Twitter by 21.3% in the second quarter. State Board of Administration of Florida Retirement System now owns 901,244 shares of the social networking company’s stock valued at $15,240,000 after buying an additional 158,309 shares during the period. Norges Bank bought a new stake in Twitter during the fourth quarter valued at $78,597,000. Legal & General Group Plc boosted its stake in Twitter by 4.1% in the first quarter. Legal & General Group Plc now owns 1,756,013 shares of the social networking company’s stock valued at $29,062,000 after buying an additional 69,951 shares during the period. Finally, State Street Corp boosted its stake in Twitter by 3.5% in the first quarter. State Street Corp now owns 9,367,582 shares of the social networking company’s stock valued at $155,031,000 after buying an additional 317,209 shares during the period. Institutional investors and hedge funds own 41.87% of the company’s stock.
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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