CEO of Twitter, Inc. (NYSE:TWTR) Gains Around $11M By Selling His Shares In Square Inc- ARRIS International (NASDAQ:ARRS)

Twitter, Inc. (NYSE:TWTR) [Trend Analysis] moved up reacts as active mover, shares a gain 4.49% to traded at $16.52 and the percentage gap between open changing to regular change was 0.70%.   CEO of Twitter Inc. (TWTR) Jack Dorsey has bought around 426,000 shares worth $7 million of the company this Valentine’s day. The founder director tweeted the news with the hash tag “#Love Twitter” from his account. The news led to an upside in Twitter’s share price. The company has been witnessing sluggish user expansion and revenues have grown just 1% year over year in the recently declared quarter. Amid the exodus of top level executives and poor quarterly results, the latest development has managed to generate considerable momentum for the company and rekindle investors’ interest.

Previously, Dorsey had gained around $11 million by selling his shares in Square Inc. The move to buy Twitter shares can be seen as Dorsey’s effort to reassure dismayed investors who have been on the edge given its unabated troubles.   Generally it is said that when a founder buys shares of his own company, it implies that the stock has much upside potential.

CEO and co-founder of Twitter Inc. (TWTR), Jack Dorsey bought 425,998 shares of company on Feb. 14, according to a filing with the Securities and Exchange Commission. The purchases came in two transactions for an average price of $16.90 per share. Dorsey now owns 15,468,426 shares of the company. Twitter has a market cap of $11.81 billion, an enterprise value of $9.72 billion, a price-book (P/B) ratio of 2.5, a price-sales (P/S) ratio of 4.5 and a quick ratio of 7.97.

Twitter, Inc. (NYSE:TWTR) provides a network that connects users to people, information, ideas, opinions and news. The company’s services include live commentary, live connections and live conversations. According to GuruFocus, Twitter has a 7 out of 10 financial strength rating with a cash-debt ratio of 0.93 and an equity-asset ratio of 0.60. The Piotroski F-Score of 6 indicates the company’s financial situation is typical for a stable company.

Analysts Views in Glance

Finally to see some strong financial remarks by WSJ over Twitter, Inc. (TWTR) performance. Out of the pool of analysts 6 gave their BUY ratings on the stock in previous month as 4 analysts having BUY in current month. The stock was ranked as Underweight by 4 analysts while 1not a single analyst gave SELL rank. Majority ranked Hold from the pool of analysts.

The next year first quarter EPS estimates trend for current period shows $0.02 while one month ago this estimate trend was for $0.14. EPS indicator shows the robustness of the stock and its analysis opens up the clear picture of company’s profitability. On annual basis of EPS, FY 2017 Estimate Trends at current were for $0.45 and for the one month was for $0.79 as compared to three months ago was for $0.77. Whereas, TWTR received highest price target of 25 and low target of 10. The stock price target chart showed average price target of 14.83 as compared to current price of 16.74.

The firm’s current ratio calculated as 8 for the most recent quarter. The firm past twelve months price to sales ratio was 4.92 and price to cash ratio remained 3.30. As far as the returns are concern, the return on equity was recorded as -10% and return on investment was -6.10% while its return on asset stayed at -6.80%. The firm has total debt to equity ratio measured as 0.37.

ARRIS International plc (NASDAQ:ARRS) [Trend Analysis] try to make new thrust in street and making different trends, stocks trading ended with 1.15% to $29.87. Finally, analysts shed their light over the ARRS price targets; maintaining price high target of 40 while at average the price target was 36.17 in contrast with the current price of 30.11. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 6 analysts recommending BUY ratings for current month and for previous month 7 stands on similar situation; 1 analyst recommending for HOLD from the pool for previous month. While 1 stand at overweight. For the overall, consensus ratings were for Buy. The share price of ARRS attracts active investors, as stock price of week volatility recorded 2.01%. The stock is going forward to its 52-week low with 48.98% and lagging behind from its 52-week high price with -5.23%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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