Expedia (EXPE) Downgraded by Zacks Investment Research to “Sell”
Expedia (NASDAQ:EXPE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Expedia’s fourth-quarter 2017 results were disappointing. Earnings declined on a year-over-year basis despite top-line growth. Higher selling and marketing expenses hurt bottom-line in the quarter. Expedia expects cost of revenues to grow slightly faster than revenues in 2018. Management also expects technology and content expense to grow significantly faster than revenues, primarily due to an increase in cloud spending and the impact of key investments. We believe that increased investments, intensifying competition across geographic regions and discounts offered by larger chain hotels can make margin expansion difficult in the long haul. In past 12 months, the stock has underperformed the industry it belongs to.”
Other analysts also recently issued reports about the company. Deutsche Bank reissued a “buy” rating and issued a $171.00 target price (down from $175.00) on shares of Expedia in a report on Tuesday, October 24th. SunTrust Banks reissued a “buy” rating and issued a $190.00 target price on shares of Expedia in a report on Monday, October 23rd. KeyCorp reissued a “buy” rating and issued a $178.00 target price on shares of Expedia in a report on Tuesday, October 17th. UBS Group reissued a “buy” rating and issued a $154.00 target price (down from $170.00) on shares of Expedia in a report on Friday, October 27th. Finally, Citigroup reissued a “buy” rating and issued a $170.00 target price (down from $180.00) on shares of Expedia in a report on Friday, October 27th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and twenty-two have given a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $150.15.
Expedia (NASDAQ:EXPE) last posted its earnings results on Thursday, February 8th. The online travel company reported $0.84 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.15 by ($0.31). Expedia had a net margin of 3.76% and a return on equity of 9.66%. The firm had revenue of $2.32 billion during the quarter, compared to analysts’ expectations of $2.35 billion. During the same period in the previous year, the firm posted $1.17 earnings per share. The firm’s revenue for the quarter was up 10.8% on a year-over-year basis. equities analysts anticipate that Expedia will post 4.43 earnings per share for the current year.
In related news, insider Lance A. Soliday sold 2,401 shares of the business’s stock in a transaction dated Thursday, December 21st. The stock was sold at an average price of $120.37, for a total value of $289,008.37. Following the transaction, the insider now owns 5,744 shares in the company, valued at approximately $691,405.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dara Khosrowshahi sold 150,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 22nd. The stock was sold at an average price of $125.00, for a total value of $18,750,000.00. Following the transaction, the director now owns 522,348 shares in the company, valued at approximately $65,293,500. The disclosure for this sale can be found here. Insiders own 20.88% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Pettyjohn Wood & White Inc. increased its position in Expedia by 24.1% during the 4th quarter. Pettyjohn Wood & White Inc. now owns 9,693 shares of the online travel company’s stock worth $1,161,000 after purchasing an additional 1,885 shares during the period. King Luther Capital Management Corp increased its position in Expedia by 0.9% during the 4th quarter. King Luther Capital Management Corp now owns 132,846 shares of the online travel company’s stock worth $15,911,000 after purchasing an additional 1,249 shares during the period. Burgundy Asset Management Ltd. increased its position in Expedia by 2.3% during the 4th quarter. Burgundy Asset Management Ltd. now owns 299,710 shares of the online travel company’s stock worth $35,896,000 after purchasing an additional 6,714 shares during the period. Winslow Capital Management LLC increased its position in Expedia by 21.0% during the 4th quarter. Winslow Capital Management LLC now owns 3,092,639 shares of the online travel company’s stock worth $370,406,000 after purchasing an additional 535,874 shares during the period. Finally, Sovarnum Capital L.P. acquired a new position in Expedia during the 4th quarter worth approximately $240,000. Institutional investors own 82.50% of the company’s stock.
Expedia Company Profile
Expedia, Inc is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations.
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