Zacks Investment Research upgraded shares of Tripadvisor (NASDAQ:TRIP) from a sell rating to a hold rating in a research report released on Wednesday.
According to Zacks, “TripAdvisor is witnessing secular growth trends in the online travel space. The company's fourth-quarter results were impacted by a weak performance in the Hotel business. Also, increasing marketing investments continue to be a concern. However, the company’s improvement in user growth and engagement can be accredited to growth initiatives like Meta search & Instant Booking; and strong focus on developing its mobile products. Expansion into the international restaurant reservation space, solid fundamentals and boosting hotel bookings from partnerships are likely to help the company to achieve desired results. On a 12-month basis, the stock has underperformed the Industry to which it belongs to. Macro headwinds, increasing competition and uncertainty regarding the timeline for recovery of investments remain overhangs.”
Several other analysts have also weighed in on TRIP. SunTrust Banks reissued a hold rating on shares of Tripadvisor in a report on Friday, February 16th. ValuEngine raised Tripadvisor from a sell rating to a hold rating in a report on Thursday, February 15th. BidaskClub raised Tripadvisor from a sell rating to a hold rating in a report on Friday, February 16th. Royal Bank of Canada reissued a hold rating and issued a $45.00 target price on shares of Tripadvisor in a report on Friday, February 16th. Finally, Wells Fargo & Co reissued a hold rating on shares of Tripadvisor in a report on Wednesday, February 14th. Six analysts have rated the stock with a sell rating and nineteen have given a hold rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $40.06.
Tripadvisor (NASDAQ:TRIP) opened at $42.30 on Wednesday. The company has a current ratio of 2.67, a quick ratio of 2.47 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $5,784.27, a price-to-earnings ratio of 74.38, a P/E/G ratio of 4.56 and a beta of 2.22. Tripadvisor has a twelve month low of $29.50 and a twelve month high of $50.95.
Tripadvisor (NASDAQ:TRIP) last posted its earnings results on Wednesday, February 14th. The travel company reported $0.06 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.14 by ($0.08). The firm had revenue of $321.00 million during the quarter, compared to analyst estimates of $309.12 million. Tripadvisor had a negative net margin of 1.22% and a positive return on equity of 5.63%. The firm’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same period last year, the company posted $0.16 EPS. analysts expect that Tripadvisor will post 0.61 EPS for the current fiscal year.
Tripadvisor announced that its Board of Directors has initiated a stock buyback plan on Wednesday, February 14th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the travel company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.
In other news, insider Dermot Halpin sold 26,313 shares of the company’s stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $42.49, for a total value of $1,118,039.37. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Ernst 02494 Teunissen sold 9,457 shares of the company’s stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $40.00, for a total value of $378,280.00. Following the completion of the sale, the chief financial officer now owns 13,866 shares in the company, valued at $554,640. The disclosure for this sale can be found here. Insiders sold 36,116 shares of company stock worth $1,508,256 over the last 90 days. Company insiders own 1.09% of the company’s stock.
Several large investors have recently modified their holdings of the company. FNY Managed Accounts LLC purchased a new position in Tripadvisor during the third quarter worth about $101,000. SeaCrest Wealth Management LLC purchased a new position in Tripadvisor during the fourth quarter worth about $104,000. NuWave Investment Management LLC purchased a new position in Tripadvisor during the fourth quarter worth about $116,000. Steward Partners Investment Advisory LLC lifted its position in Tripadvisor by 164.8% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,880 shares of the travel company’s stock worth $168,000 after buying an additional 3,037 shares during the period. Finally, Meag Munich Ergo Kapitalanlagegesellschaft MBH purchased a new position in Tripadvisor during the fourth quarter worth about $180,000. Institutional investors and hedge funds own 79.63% of the company’s stock.
TripAdvisor, Inc owns and operates a portfolio of online travel brands. TripAdvisor, the Company’s brand, is a travel site. The Company operates through two segments: Hotel and Non-Hotel. The Company’s Hotel segment includes click-based advertising and transaction; display-based and subscription-based advertising, and other hotel operations.
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