Jack Dorsey, CEO and co-founder of Twitter Inc. (TWTR, Financial), purchased 425,998 shares of the 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.
Headquartered in San Francisco, Twitter is a global platform that was created by Dorsey, Noah Glass, Biz Stone and Evan Williams for public self-expression and conversation in real time.
Twitter 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.
Twitter has an 3 out of 10 profitability and growth rating with an operating margin of -14.52%, a net margin of -18.06%, a return on equity (ROE) of -10.09%, three-year revenue growth of 0.90% and a return on assets (ROA) of -6.89%.
Twitter’s market price has been in long-term decline over the previous three years, tumbling an estimated 38%.
Guru Jeremy Grantham (Trades, Portfolio) more than doubled his stake in Twitter during the fourth quarter. Since then, the company's market price has declined an estimated 10%.
Disclosure: Author does not own any shares of this company.
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