Tripadvisor (NASDAQ:TRIP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors 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.”
TRIP has been the subject of several other reports. Deutsche Bank dropped their price objective on shares of Tripadvisor from $40.00 to $37.00 and set a “hold” rating for the company in a research note on Tuesday, October 24th. UBS Group reaffirmed a “neutral” rating and set a $43.00 price objective on shares of Tripadvisor in a research note on Wednesday, November 8th. ValuEngine raised shares of Tripadvisor from a “sell” rating to a “hold” rating in a research note on Thursday, February 15th. Piper Jaffray Companies reaffirmed a “neutral” rating and set a $47.00 price objective on shares of Tripadvisor in a research note on Thursday, February 15th. Finally, Oppenheimer reaffirmed a “hold” rating on shares of Tripadvisor in a research note on Sunday, December 17th. Six research analysts have rated the stock with a sell rating and nineteen have assigned a hold rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $40.06.
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 analysts’ consensus estimates of $0.14 by ($0.08). Tripadvisor had a negative net margin of 1.22% and a positive return on equity of 5.63%. The business had revenue of $321.00 million during the quarter, compared to analysts’ expectations of $309.12 million. During the same period last year, the business posted $0.16 earnings per share. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. research analysts predict that Tripadvisor will post 0.61 EPS for the current year.
Tripadvisor announced that its board has authorized a stock repurchase plan on Wednesday, February 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the travel company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.
In other Tripadvisor news, CFO Ernst 02494 Teunissen sold 9,457 shares of the business’s stock in a transaction dated 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 transaction, the chief financial officer now directly owns 13,866 shares in the company, valued at $554,640. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Dermot Halpin sold 26,313 shares of the business’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $42.49, for a total transaction of $1,118,039.37. The disclosure for this sale can be found here. Insiders sold 36,116 shares of company stock valued at $1,508,256 over the last quarter. 1.09% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the business. Massmutual Trust Co. FSB ADV raised its holdings in Tripadvisor by 17,655.6% in the fourth quarter. Massmutual Trust Co. FSB ADV now owns 1,598 shares of the travel company’s stock worth $192,000 after purchasing an additional 1,589 shares in the last quarter. FNY Managed Accounts LLC bought a new position in Tripadvisor in the third quarter worth about $101,000. SeaCrest Wealth Management LLC bought a new position in Tripadvisor in the fourth quarter worth about $104,000. NuWave Investment Management LLC bought a new position in Tripadvisor in the fourth quarter worth about $116,000. Finally, Steward Partners Investment Advisory LLC raised its holdings in Tripadvisor by 164.8% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,880 shares of the travel company’s stock worth $168,000 after purchasing an additional 3,037 shares in the last quarter. Institutional investors and hedge funds own 79.63% of the company’s stock.
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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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