Twitter Inc (NYSE:TWTR) is making quite the rebound today, up over 6% in morning trading. On the surface there is no particular reason for this upward move, but when you dig a little deeper you can begin to speculate what is happening here.
Shares of Twitter Inc (NYSE:TWTR) have taken one heck of a beating over the past few weeks, and as the stock reached its all-time low yesterday, it appears as though those investors who wanted out have all had the chance to leave. This brings in fresh new investors who are looking at the company as a value trade, one with a lot of potential upside, and very little downside after the stock took such a beating. Additionally, CEO Jack Dorsey’s other company, Square, recently had Visa acquire a 10% stake in it, leading some to speculate that an acquisition of Twitter Inc (NYSE:TWTR) could come next.
Has this stock finally bounced off a bottom? It’s very possible. It will be interesting to see if hedge funds jump on board now that shares are priced so low. It would seem like a good opportunity.
The stock is up 6.71% or $0.96 following the news, hitting $15.27 per share. About 7.33M shares traded hands. TWTR has declined 58.35% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 48.88%.
From a total of 31 analysts covering Twitter (NYSE:TWTR) stock, 13 rate it a “Buy”, 3 a “Sell”, and 15 a “Hold”. This means that 42% of the ratings are positive. The highest target price is $56 while the lowest target price is $19. The mean of all analyst targets is $31.97 which is 109.36% above today’s ($15.27) stock price. Twitter was the topic of 56 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus downgraded shares on February 2 to a “Sell” rating. Mizuho initiated shares with a”Neutral” rating and a $21.0 target share price in their report from a January 13. Pivotal Research maintained TWTR stock in a recent report from January 25 with a “Buy” rating. Morgan Stanley maintained the rating on October 28. Morgan Stanley has a “Underweight” rating and a $22 price target on shares. Finally, Standpoint Research initiated the stock with a “Buy” rating in a report they issued on a January 20.
The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio fall, as 102 funds sold all their Twitter Inc shares they owned while 129 reduced their positions. 56 funds bought stakes while 191 increased their total positions. Institutions now own 269.03 million shares which is 10.40% less than the previous share count of 300.24 million in 2015Q2.
Institutional Venture Management Xii Llc holds 100% of its total portfolio in Twitter Inc, equating to 418,115 shares. Rizvi Traverse Management Llc owns 2.80 million shares representing 100% of their total US portfolio. Moreover, Ah Equity Partners Iii L.L.C. has 69.57% of their total portfolio invested in the company, equating to 1,202 shares. The California-based Kpcb Dgf Associates Llc has a total of 28.35% of their portfolio invested in the stock. Bain Capital Venture Investors Llc, a Massachusetts-based fund reported 817,155 shares owned.
Twitter, Inc. is a global platform for public self-expression and conversation in real time. The company has a market cap of $9.96 billion. The Firm offers services and products for users, advertisers, developers and platform and data partners. It currently has negative earnings. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users.