Activist investor Anson Funds has reportedly asked software company Twilio (NYSE:TWLO) to either sell its business or divest its data and applications business.
Indeed, the activist fund is reported to have sent a letter to the company’s management on Wednesday. In the letter, Anson asked the company’s board to sell itself or reorganize its business structure. The move comes after Anson built its stake in the company to around $50 million.
In a statement, a Twilio spokesperson said, “Twilio regularly engages with shareholders and appreciates constructive input that furthers our goal of creating sustainable long-term value.”
This development follows several reorganizations within the company this year. Earlier in February, Twilio cut around 1,500 jobs or 17% of its workforce, citing a need for heightened efficiency. In the same month, the company created two business units – Data & Applications and Communications – as part of a reorganization effort. According to a spokesperson, the move at that time had been driven by inputs from Twilio’s shareholders.
Despite a rocky 2023, Twilio shares have sustained a positive performance this year. Year-to-date, the shares are up 25% and have risen by 3.72% in today’s trading session as of this writing.
Is Twilio a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TWLO stock based on eight Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 42% increase in its share price over the past year, the average TWLO price target of $69.35 per share implies 6.41% upside potential.