Twitter in top 3% performers of S&P 500 Index in past week 10 July 2019

NEWS BITES - NORTH AMERICA

Twitter Inc. (NYSE:TWTR), the NYSE's largest Media company by market cap, has lifted $US1.45 (or 4.0%) in the past week to close at $US37.47 on Wednesday. This makes Twitter stock the eleventh highest performer in the S&P 500 Index of 493 stocks which was down 0.1% in the past week. This also indicates a relative price increase of 4.1%. The volume was 0.3 times average trading per week of 103,957,212 shares. There were 39,887,918 shares worth $US1.5 billion traded in the past week. In the past week the market cap has risen $US1.1 billion.

TODAY'S BUZZ

Twitter takes on diversity problem with new engineering apprenticeship program for women and minorities: CNBC

News DateHeadlinePublisher
Jul 10Twitter to Flag Users for Speech Offending Religious Groups--UpdateADVFN

PEOPLE'S NEWS

July 10 Twitter CFO Ned Segal's value of investment increases by $1.4 million in the past quarter

Twitter (NYSE:TWTR) CFO Ned Segal held 727,528 shares three months ago and the price was US$35.14. Ned Segal now holds 716,737 shares worth US$27 million at the last price of US$37.65, a rise in value by US$1.4 million (5.6%).

July 10 Twitter Company Secretary Vijaya Gadde's value of investment increases by $2 million in the past quarter

Twitter (NYSE:TWTR) Company Secretary Vijaya Gadde holds 793,095 shares worth US$29.9 million at the last price of US$37.65, a rise in value by US$2 million (7.4%). Three months ago Vijaya Gadde held the same number of shares and the price was US$35.14.

TODAY'S NEWS

INSTITUTIONAL BUYING

Twitter (NYSE:TWTR) institutional shareholder Retirement Systems Of Alabama (CIK:0001593051) bought 255,153 shares in the quarter ended June 30, 2019 worth $US8.9 million at an estimated Volume Weighted Average Price (VWAP) of USD37.14. At the end of the quarter Retirement Systems Of Alabama held 1,278,167 shares worth $US47.5 million.

INSTITUTIONAL SELLING

Twitter (NYSE:TWTR) institutional shareholder Farmers Trust Co (CIK:0001318055) sold 2,870 shares in the quarter ended June 30, 2019 worth $US100,163 at an estimated Volume Weighted Average Price (VWAP) of USD37.14. At the end of the quarter Farmers Trust Co held 85,806 shares worth $US3.2 million. Stock Summary

Today's close (USD)37.47
52-Week Range (USD)26.2-45.3
SectorMedia sector
EPS Growth % (y.o.y)212.5
Shares Outstanding767,913,000
Market Cap$US28.8 billion

Highlights in today's Report:

SECTION 1 TODAY'S BULLISH SIGNALS

SECTION 2 TODAY'S BEARISH SIGNALS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US37.47):

SECTION 3 THE PAST WEEK

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 REPORTED BUYING AND SELLING

SECTION 7 SUMMARY FINANCIALS

SECTION 8 CORPORATE PROFILE

SECTION 1 TWITTER BULLISH SIGNALS

1.1 Undervaluation [compared with sector average]:

Earnings Yield

+ Earnings yield of 4.7% is 2.3 times the 10-year bond yield of 2.08%.

1.2 Undervaluation Indicator and rank of Twitter in the NYSE market:

DescriptionValueRank In Market
Cash to MCap %15.0In Top Quartile

1.3 Uptrend:

Price/Moving Average Price and MACD:

+ The Price/MAP of 1.13 for TWTR is higher than the Price/MAP for the S&P 500 Index of 1.09.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 36.39 minus the 26-day EMA of 36.35 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

+ The price to 50-day EMAP ratio is 1.0, a bullish indicator. In the past 50 days this ratio has exceeded 1.0, 17 times suggesting further upside. The 50-day EMAP has increased to $US36.26. An increase is another bullish indicator.

+ The price to 200-day MAP ratio is 1.13, a bullish indicator. In the past 200 days this ratio has exceeded 1.13 28 times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of $US37.09 is higher than the 200-day MAP of $US33.25, another bullish indicator.

Past Week:

+ Twitter Inc. is placed 182/2752 in BuySellSignals' ranking of NYSE performers in the past week, a percentile ranking of 93.

+ In the past week, volume was 0.3 times average and the shares were up 4.0%. Wednesday's close price is at a 1.2% premium to its 5-day Volume Weighted Average Price (VWAP) of $US37.01.

1.4 High Price Performance Indicators and rank of Twitter in the NYSE market:

DescriptionTWTR ValueRank In Market
Today's Trading Turnover$US432.9 millionIn Top 2%
MCap$US28.8 billionIn Top Quartile
% Prem to Vol Wtd Price3.7In Top Quartile
Price/MAP2001.13In Top Quartile

SECTION 2 TWITTER BEARISH SIGNALS

2.1 Overvaluation [compared with sector average]:

Price/Earnings

+ Price/Earnings of 21.3 [17.2].

Price to Sales

+ Price/Sales of 9.1 [1.8].

MCap/Total Assets

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.8. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

2.2 Overvaluation Indicators and rank of Twitter in the NYSE market:

DescriptionValueRank In Market
Price to Sales9.1In Bottom Quartile
P/E * P/NTA110.71In Bottom Quartile

2.3 Downtrend:

+ Rising open interest with falling price

+ Open Interest Trend

Same day trend: The price decreased 0.5% from $US37.65 to $US37.47; Open interest has lifted 3.5% from 160,093 to 165,710. A fall in price combined with an increase in open interest suggests there is new money coming into the market from short sellers. This is a bearish signal.

DurationOpen Interest change %Price change %Interpretation
1-day3.5-0.5Weak Market

+ Put Call Contracts

The Put/Call ratio has jumped from 0.434 to 0.449 suggesting a downtrend.

Put ContractsCall ContractsPut/Call ratio
Today51,366114,3440.449
Previous day48,458111,6350.434

+ Top three traded call options [1 contract is 100 shares]

Exercise PriceExercise DateOption PriceChange %Contracts Traded
$US35.0July 19, 2019$US2.504.6246
$US34.0July 12, 2019$US3.351.5223
$US40.50July 26, 201998.0c15.368

Past Month:

+ The price decreased 0.5% in the past month.

Slipping Relative Strength (1mo, 3 mo):

+ In the NYSE market of 1,879 stocks and 286 units traded today, the stock has a 6-month relative strength of 61 which means it has outperformed 61% of the market.

+ Also, the relative strength percentile is slipping at 77 for 3 months and 22 for 1 month.

2.4 Low Price Performance Indicator and rank of Twitter in the NYSE market:

DescriptionTWTR ValueRank In Market
Volatility %3.0In Bottom Quartile

Overbought/Bearish Signals:

+ The stock is overbought according to the Williams % R indicator of -14.0, suggesting the price is close to its 14-day high of $US37.99.

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US37.47):

SECTION 3 THE PAST WEEK

3.1 Snapshot: Twitter stock was up $US1.45 or 4.0% in the past week. Volume in the week was 0.4 times average trading of 104 million shares. It outperformed the S&P 500 index in 4 out of 5 days.

DayTwitterClose price [USD]Price change %Relative change %Comment
TuesdayIn top 3% performers of S&P 500 Index37.653.33.2Top Rise
MondayDecreases36.450.61.0Price fall on slipping relative strength
FridayIn its biggest weekly gain in 2 months36.250.60.8Up 4.32% in the past week
WednesdayRises in 4 out of last 5 days36.02-0.6-1.3Steepest Fall
TuesdayKeeps rising, up 4.2% in 3 days36.220.40.1Price/PMAP200 above 1 and rising

3.2 Stock Buzz: Past Week

News DateHeadlinePublisher
Jul 09Twitter Succeeds Where Apple Stock FaltersNasdaq
Jul 04Twitter Inc.: Twitter to Announce Second Quarter 2019 ResultsThe Wall Street Transcript
Jul 04Facebook, Instagram and Twitter Report Service Issuesuk.advfn.com

3.3 Volatility:

+ Twitter is at a discount of 17.4% to its 12-month high of $US45.34 on July 12, 2018. It is also at a premium of 43.1% to the 12-month low of $US26.19 on October 11.

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Performance:

+ Return on Assets 11.9% [6.0%].

4.2 Low Debt Indicators:

+ The debt to equity ratio of 1.0% is under a safe benchmark figure of 50%. Moreover, it has improved in the past four years.

DescriptionValueRank In Market
Debt to Equity0.01In Top 5%

4.3 High Performance Indicators and rank of Twitter in the NYSE market:

DescriptionValueRank In Market
Return on Assets [ROA] %11.9In Top Quartile
Return on Equity [ROE] %17.7In Top Quartile

4.4 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged 14.2%. The Moving Annual Return has been positive in 1 out of 5 years.

TWTRClose (USD)Annual Return %
Jul 1037.47(14.4)
1 Yr ago43.75142.8
2 Yrs ago18.02(0.3)
3 Yrs ago18.08(47.4)
4 Yrs ago34.36(9.7)

Close 5 years ago $US38.06

4.5 Increased ADVT past five years

Avg. Daily Volume Traded 12 months ended Jul 10, million shares

YearADVT
201926.0
201824.3
201722.6
201621.7
201521.9

In the past five years, Average Daily Volume of Trading (ADVT) has increased 18.9% to 26 million shares.

4.6 Decrease in Insider Selling

In the past 5 years a total of 43,809,570 Twitter shares (or 5.7% of the total shares on issue) worth $US1.4 billion were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 8,761,914 shares per year. In the past year, insiders sold 13,639,545 shares, a decrease of 8.6% from the previous year.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Performance:

+ Return on Equity 17.7% [31.2%].

+ Return on Capital Employed 4.9% [10.8%].

+ Net profit margin has averaged 5.7% in the last 3 years. This is lower than the sector average of 12.2% and suggests a low margin of safety.

+ As per the Du Pont analysis, Return on Equity [ROE] of 17.7% is lower than sector average of 31.2%. ROE is computed as net profit margin of 39.6% times asset turnover [sales/assets] of 0.3 times leverage factor [total assets/shareholders' equity] of 1.5.

5.2 Growth:

Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

+ Revenue growth has shown signs of deterioration in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 19 [Q1]-13.4-25.324.2
Dec 18 [Q4]19.9-67.628.1

5.3 High Debt Indicators:

+ Total Liabilities/EBITDA of 7.9 compares unfavourably with the Joseph Piotroski benchmark of 5.

5.4 Declining VWAP

Past five years, 12 months ended Jul 10 (USD)

YearHigh PriceVWAPLow Price
201945.3433.2626.19
201847.7928.715.67
201725.2518.1614.12
201638.8221.9313.72
201555.9943.1133.51

In the past five years Volume Weighted Average Price (VWAP) has decreased by 22.9% to $US33.26. Based on a dynamic start date of five years ago, there have been declines in VWAP in 3 out of 5 years.

5.5 Declining Average Daily Turnover

Past five years, 12 months ended Jul 10 (USD million)

YearAverage Daily Turnover
2019688.0
2018702.4
2017413.3
2016477.7
2015949.5

In the past five years, average daily share turnover has decreased 27.5% to $US688 million. This suggests decreased liquidity.

5.6 Decrease in Institutional Ownership

Quarter-endDecember 31, 2018March 31, 2019
Holdings (%)67.963.5

As at March 31, 2019 Institutions held 63.5% of total shares on issue; a decrease from 67.9% as at December 31, 2018.

SECTION 6 TWITTER REPORTED BUYING AND SELLING

6.1 Insider Selling

July 08: Twitter insider sells

Twitter (NYSE:TWTR) insider Derella Matthew sold 4,669 shares worth $US168,848 on July 03. The selling price was $US36.16.

6.2 Institutional Buying and Selling Quarter Ended March 31

Total reported Institutional buying = 75,648,840 shares

Total reported Institutional selling = 40,714,634 shares

Net reported institutional buying = 34,934,206 shares

6.3 Reported Holdings of Institutions as at Mar 31, 2019

Total = 487,448,299 shares

Market Value = $US16 billion

Institutions hold 63.5% of Issued Shares.

SECTION 7 TWITTER SUMMARY FINANCIALS

7.1 Financials Summary

Year endedDec 2018Dec 2017Dec 2016
Sales (USD B)32.42.5
Pretax (USD M)423.5(95.4)(440.8)
Net (USD)1.2B(108.1M)(456.9M)
EPS (USD)1.6(0.15)(0.65)

+ There was a turnaround in Net profit from a loss of US$108.1 million in 2017 to net profit of US$1.2 billion in 2018.

+ Earnings Per Share (EPS) improved from a loss of 15.0c to $US1.60.

7.2 Quarterly Report: Key Parameters

Quarterly Report Q1 2019: Twitter EPS drops 26%

Twitter (NYSE:TWTR), announced EPS of 25.0c for the quarter-ended 31 March 2019 [Q1/2019], down 26.5% sequentially from 34.0c in the previous quarter [Q4/2018].

Quarter-ended31 Mar [Q1/2019]31 Dec [Q4/2018]30 Sep [Q3/2018]
EPS25.0c34.0c$US1.04
Sequential growth in EPS %-26.47-67.31700.0
Revenue$US787m$US909m$US758m
Sequential growth in Revenue %-13.4219.886.69
Net Profit$US191m$US255m$US789m
Sequential growth in Net Profit %-25.26-67.65688.26

Compared with the previous corresponding period [PCP; Q1/2018], year-over-year [y.o.y.] EPS was up 212.5%, Revenue was up 18.4% and Net Profit was up 212.8%.

Quarter-ended31 Mar [Q1/2019]31 Mar [Q1/2018]
EPS25.0c8.0c
PCP growth in EPS %212.5-
Revenue$US787m$US665m
PCP growth in Revenue %18.3521.27
Net Profit$US191m$US61.0m
PCP growth in Net Profit %212.81-

7.3 Annual Report: Key Parameters

FY2018 Annual Report: Twitter Revenue up 24.5%

Twitter (NYSE:TWTR) reported total revenue for the year-ended 31 December 2018 of $US3.0b, up 24.5% from $US2.4b in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Total revenue up 24.5% from $US2.4b to $US3.0b

- Cost of Goods Sold to Revenues down from 35.2% to 31.7%

- Sales and marketing expenses to Revenues down from 29.4% to 25.4%

- Administration expenses to Revenues down from 11.6% to 9.8%

- Total non-current assets to Total Assets up from 28.2% to 30%

- Total Liabilities to Operating Cash Flow of 2.5 compares favourably with the Joseph Piotroski benchmark of <4. This ratio has improved by 11.9% from the previous year's ratio of 2.9.

- Net tangible assets per share up 37.7% from $US5.2 to $US7.16

Unfavourable Changes:

- Current ratio down 48.6% from 9.1 to 4.7

- Working capital to total assets down from 63.9% to 55.1%

- Total current assets to Total Assets down from 71.8% to 70%

- Fixed Assets to Total Assets down from 10.4% to 8.7%

- Total Liabilities to EBITDA of 7.9 compares unfavourably with the Joseph Piotroski benchmark of <5

Note:

- Total revenue to total assets steady at 0.3

- Total liabilities to Total assets steady at 0.3

- Short-term investments to Total Assets up from 37.3% to 42.5%

- Intangibles to Total Assets down from 16.7% to 12.5%

Annual Report [Year-on-year comparison: 2018 vs 2017]

Company Name : Twitter Inc. (TWTR)
December 3120182017Change
Description$US m$US m(%)
Total Revenue3,042.42,443.3Up 24.5
Working Capital5,594.74,738.6Up 18.1
Current Assets7,1115,321.9Up 33.6
Shareholders' Funds6,805.65,047.2Up 34.8
Total Liabilities3,3572,365.3Up 41.9
Total Assets10,162.67,412.5Up 37.1
Total Debt6885Down 19.9
Operating Cash Flow1,339.7831.2Up 61.2
Net Assets6,805.65,047.2Up 34.8
Net Tangible Assets5,533.33,808.6Up 45.3
AuditorPricewaterhouseCoopers LLP 

Year-on-year comparison of Per Share figures

December 3120182017Change (%)
Description$US $US
Cash86Up 33.7
Working Capital7.46.5Up 14.7
Shareholders' Funds96.9Up 31
Total Liabilities4.53.2Up 37.9
Total Assets13.510.1Up 33.2
Total Debt9c11.6 cDown 22.2
Net Tangible Assets7.25.2Up 37.7

Year-on-year comparison of Performance Ratios

December 3120182017Change (%)
Total debt to net tangible assets (%)1.22.2Down 45.5
Total Liabilities to EBITDA7.9 - na
Total Liabilities to Operating Cash Flow2.52.9Down 11.9
Total Liabilities/Total Assets (Up 3.1% from 0.32 to 0.33)0.30.3Up 3.1
Current Ratio4.79.1Down 48.6
Common Size Ratios by Assets %
Total current assets to Total Assets 70.0 71.8 Down 2.5
Short-term investments to Total Assets 42.5 37.3 Up 13.9
Total non-current assets to Total Assets 30.0 28.2 Up 6.4
Intangibles to Total Assets 12.5 16.7 Down 25.2
Fixed Assets to Total Assets 8.7 10.4 Down 16.7
Common Size Ratios by Revenues %
Cost of Goods Sold to Revenues 31.7 35.2 Down 10.1
Sales and marketing expenses to Revenues 25.4 29.4 Down 13.5
Profit before tax to Revenues 13.9 (3.9) Up 455.9
Administration expenses to Revenues 9.8 11.6 Down 15.7
Tax expenses to Revenues (25.7) 0.5 Down 5065.8

SECTION 8 CORPORATE PROFILE

8.1 Activities

Twitter, Inc. provides real-time short messaging and multimedia messaging services that work over multiple networks and devices. The Company offers users the ability to write short text messages (Tweets) and to follow other users' activity. A Tweet is up to 140 characters long and can include photos and videos.

8.2 Top Management

The chief executive officer is Jack Dorsey and the chief financial officer is Ned Segal.

8.3 Issued Capital and MCap

Based on 767,913,000 issued shares the market capitalisation is $US28.8 billion.

8.4 Vanguard Total World Stock ETF 7489:

The stock was one of 7489 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 240 shares in the period Apr 30, 2019 to May 31, 2019 worth $US-9,165 at an estimated Volume Weighted Average Price (VWAP) of $US38.1883. As at May 31, 2019, the Vanguard Total World Stock ETF held 234,094 shares worth $US8,939,652 or 0.05% by value of the ETF's portfolio [Ranked 333 out of 7489 by value and 142 out of 1077 for NYSE].

COMPANY IDENTIFIERS

Contact: +1 415 222-9670

Physical Address: 1355 Market Street, Suite 900, San Francisco, CA,94103

State/Province/Country: CA [CA], United States

Country of Incorporation: United States

Industry [NAICS]: 519190

Exchange: New York Stock Exchange

Business Sector: Cyclical Consumer Services

Industry Group: Media & Publishing

Economic Sector: Consumer Cyclicals

ISIN: US90184L1026

N:TWTR; TWTR.N

PermID: 4296301199

RIC: TWTR.N

CIK: 1418091

CUSIP: 90184L102

Twitter Inc, Twitter, Inc

Source: www.BuySellSignals.com