Twitter Inc. [NYSE: TWTR] stock went on an upward path that rose over 3.20% on Monday, amounting to a one-week price increase of more than 10.71%. The company report on March 2, 2021 that Twitter, Inc. Announces Pricing of $1.25 Billion Convertible Notes Offering.
Twitter, Inc. (NYSE: TWTR) announced the pricing of $1.25 billion aggregate principal amount of 0% convertible senior notes due 2026 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). Twitter also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $187.5 million aggregate principal amount of the notes, to cover over-allotments, if any. The sale of the notes to the initial purchasers is expected to settle on March 4, 2021, subject to customary closing conditions, and is expected to result in approximately $1,235.4 million in net proceeds to Twitter after deducting the initial purchasers’ discount and estimated offering expenses payable by Twitter (assuming no exercise of the initial purchasers’ over-allotment option).
The notes will be senior, unsecured obligations of Twitter. The notes will not bear interest, and the principal amount of the notes will not accrete. The notes will mature on March 15, 2026, unless earlier repurchased or converted.
Over the last 12 months, TWTR stock rose by 139.95%. The one-year Twitter Inc. stock forecast points to a potential downside of -2.84. The average equity rating for TWTR stock is currently 2.70, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $56.39 billion, with 794.08 million shares outstanding and 777.25 million shares in the current float. Compared to the average trading volume of 21.04M shares, TWTR stock reached a trading volume of 15461049 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Twitter Inc. [TWTR]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TWTR shares is $68.34 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TWTR stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Cleveland Research have made an estimate for Twitter Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 01, 2021. While these analysts kept the previous recommendation, Pivotal Research Group raised their target price from $77.25 to $95. The new note on the price target was released on February 26, 2021, representing the official price target for Twitter Inc. stock. Previously, the target price had yet another raise to $55, while MoffettNathanson analysts kept a Neutral rating on TWTR stock. On February 10, 2021, analysts increased their price target for TWTR shares from 43 to 64.
The Average True Range (ATR) for Twitter Inc. is set at 4.11, with the Price to Sales ratio for TWTR stock in the period of the last 12 months amounting to 15.17. The Price to Book ratio for the last quarter was 7.00, with the Price to Cash per share for the same quarter was set at 9.31. Price to Free Cash Flow for TWTR in the course of the last twelve months was 471.89 with Quick ratio for the last quarter at 4.40.
TWTR Stock Performance Analysis:
Twitter Inc. [TWTR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.71. With this latest performance, TWTR shares gained by 2.51% in over the last four-week period, additionally plugging by 80.53% over the last 6 months – not to mention a rise of 139.95% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TWTR stock in for the last two-week period is set at 56.37, with the RSI for the last a single of trading hit 55.22, and the three-weeks RSI is set at 57.73 for Twitter Inc. [TWTR]. The present Moving Average for the last 50 days of trading for this stock 60.13, while it was recorded at 67.84 for the last single week of trading, and 46.12 for the last 200 days.
Insight into Twitter Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Twitter Inc. [TWTR] shares currently have an operating margin of +0.72 and a Gross Margin at +63.23. Twitter Inc.’s Net Margin is presently recorded at -30.56.
Return on Total Capital for TWTR is now 0.22, given the latest momentum, and Return on Invested Capital for the company is -9.80. Return on Equity for this stock declined to -13.62, with Return on Assets sitting at -8.71. When it comes to the capital structure of this company, Twitter Inc. [TWTR] has a Total Debt to Total Equity ratio set at 56.26. Additionally, TWTR Total Debt to Total Capital is recorded at 36.01, with Total Debt to Total Assets ending up at 33.52. Long-Term Debt to Equity for the company is recorded at 42.52, with the Long-Term Debt to Total Capital now at 27.21.
Reflecting on the efficiency of the workforce at the company, Twitter Inc. [TWTR] managed to generate an average of -$206,477 per employee. Receivables Turnover for the company is 3.93 with a Total Asset Turnover recorded at a value of 0.28.Twitter Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.40 and a Current Ratio set at 4.40.
TWTR Stock EPS
With the latest financial reports released by the company, Twitter Inc. posted 0.11/share EPS, while the average EPS was predicted by analysts to be reported at 0.1/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 10.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TWTR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Twitter Inc. go to 0.43%.
Twitter Inc. [TWTR] Insider Position Details
There are presently around $42,453 million, or 78.00% of TWTR stock, in the hands of institutional investors. The top three institutional holders of TWTR stocks are: VANGUARD GROUP INC with ownership of 83,109,525, which is approximately 2.452% of the company’s market cap and around 0.20% of the total institutional ownership; MORGAN STANLEY, holding 68,115,796 shares of the stock with an approximate value of $4.79 billion in TWTR stocks shares; and BLACKROCK INC., currently with $3.73 billion in TWTR stock with ownership of nearly -8.554% of the company’s market capitalization.
Positions in Twitter Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 481 institutional holders increased their position in Twitter Inc. [NYSE:TWTR] by around 63,588,191 shares. Additionally, 378 investors decreased positions by around 49,649,996 shares, while 139 investors held positions by with 490,820,447 shares. The mentioned changes placed institutional holdings at 604,058,634 shares, according to the latest SEC report filing. TWTR stock had 193 new institutional investments in for a total of 7,049,138 shares, while 85 institutional investors sold positions of 14,782,067 shares during the same period.