Twitter Inc (NYSE:TWTR) Shares Fall As Silver Lake Buyout Hopes Begin to Fizzle


The rollercoaster ride for Twitter Inc (NYSE:TWTR) remains in full swing after shares of the social networking company have dropped significantly in early morning trading today.

Yesterday the stock rose sharply after rumors began to circulate that the private-equity firm Silver Lake Partners may be ready to make an offer to take the company private. The stock was up nearly $2 per share or 12% at one point during the day yesterday, and has since been on a steady downward spiral as more recent news has indicated that the likelihood of such a takeover is slim.

Fortune Magazine expressed doubt that such a deal would ever happening, even going as far as stating that Silver Lake had absolutely no interest in purchasing even a small slice of the company. With a lack of new takeover rumors it will be interesting to see how low shares of Twitter Inc (NYSE:TWTR) end up falling over the coming days and weeks ahead as shareholder become more anxious.The stock has fallen 5.30% or $0.95 following this negative news, hitting $16.96 per share. Approximately 4.27M shares traded hands. TWTR shares have declined 49.21% since June 26, 2015 and are currently downtrending. It has underperformed the S&P500 by 40.34%.

From a total of 29 analysts covering Twitter (NYSE:TWTR) stock, 12 rate it a “Buy”, 2 a “Sell”, and 15 a “Hold”. This means that 41% of the ratings are positive. The highest target price is $56 while the lowest target price is $21.0. The mean of all analyst targets is $33.79 which is 99.23% above today’s ($16.96) stock price. Twitter was the topic of 47 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Mizuho initiated shares on January 13 with a “Neutral” rating. Morgan Stanley maintained shares with a”Underweight” rating and a $22 target share price in their report from an October 28. M Partners maintained TWTR stock in a recent report from November 16 with a “Neutral” rating. Barclays Capital maintained the rating on October 28. Barclays Capital has a “Equal-Weight” rating and a $33 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 28.

The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio dropped, 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 $11.59 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.