Twitter Inc. (NYSE:TWTR) has a beta of 0.84. The stock’s Relative Strength Index (RSI) is 62.01, with weekly volatility at 2.81% and ATR at 1.82. The TWTR stock’s 52-week price range has touched low of $20.00 and a $52.93 high. Its shares traded higher over the last trading session, gaining 0.36% on 12/07/20. The shares fell to a low of $47.07 before closing at $47.90. Intraday shares traded counted 7.75 million, which was 56.68% higher than its 30-day average trading volume of 17.88M. TWTR’s previous close was $47.73 while the outstanding shares total 790.83M.
Investors have identified the Internet Content & Information company Twitter Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $38.15 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Twitter Inc. (TWTR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TWTR, the company has in raw cash 2.2 billion on their books with 905.53 million currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 8.59 billion total, with 1.94 billion as their total liabilities.
TWTR were able to record 84.74 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 396.1 million. In cash movements, the company had a total of 662.57 million as operating cash flow.
Potential earnings growth for Twitter Inc. (TWTR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Twitter Inc. recorded a total of 936.23 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 12.02% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 27.0%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 361.39 million trying to sell their products during the last quarter, with the result yielding a gross income of 574.85 million. This allows shareholders to hold on to 790.83M with the recently reported earning now reading 0.04 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.07 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.42 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TWTR sounds very interesting.
Is the stock of TWTR attractive?
In related news, Director, Kordestani Omid sold 82,208 shares of the company’s stock in a transaction that recorded on Nov 25. The sale was performed at an average price of 46.17, for a total value of 3,795,497. As the sale deal closes, the Director, Kordestani Omid now sold 82,209 shares of the company’s stock, valued at 3,707,796. Also, Director, Kordestani Omid sold 82,209 shares of the company’s stock in a deal that was recorded on Nov 23. The shares were price at an average price of 44.89 per share, with a total market value of 3,689,982. Following this completion of acquisition, the Director, Kordestani Omid now holds 82,208 shares of the company’s stock, valued at 3,693,658. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
10 out of 38 analysts covering the stock have rated it a Buy, while 23 have maintained a Hold recommendation on Twitter Inc.. 4 analysts has assigned a Sell rating on the TWTR stock. The 12-month mean consensus price target for the company’s shares has been set at $43.77.