TripAdvisor (NASDAQ:TRIP) Stock Rating Cut to Strong Sell at Zacks Research

TripAdvisor (NASDAQ:TRIP) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Thursday, Zacks reports.

Other research analysts have also issued reports about the stock. B. Riley Financial decreased their price objective on shares of TripAdvisor from $12.50 to $8.50 and set a “neutral” rating for the company in a report on Friday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of TripAdvisor in a research note on Wednesday, August 12th. The Goldman Sachs Group reiterated a “buy” rating and set a $16.00 price target on shares of TripAdvisor in a research report on Monday, July 20th. JPMorgan Chase & Co. decreased their price target on shares of TripAdvisor from $11.00 to $10.00 and set an “underweight” rating for the company in a research note on Friday, August 7th. Finally, Barclays decreased their price target on shares of TripAdvisor from $9.00 to $8.00 and set an “underweight” rating for the company in a research note on Friday. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and six have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $12.71.

TripAdvisor Trading Down 5.1%

Shares of NASDAQ TRIP traded down $0.38 during trading hours on Thursday, hitting $7.00. The company’s stock had a trading volume of 13,153,330 shares, compared to its average volume of 3,013,375. TripAdvisor has a 12 month low of $6.95 and a 12 month high of $16.04. The stock has a market cap of $820.40 million, a price-to-earnings ratio of -2.27, a P/E/G ratio of 3.80 and a beta of 0.87. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.56 and a current ratio of 1.56. The business has a 50-day simple moving average of $8.94 and a 200-day simple moving average of $10.91.

TripAdvisor (NASDAQ:TRIP) last released its quarterly earnings results on Thursday, November 5th. The travel company reported $0.37 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.06). TripAdvisor had a net margin of 0.28% and a return on equity of 4.23%. The business had revenue of $436.40 million for the quarter, compared to the consensus estimate of $447.39 million. During the same period in the previous year, the company earned $0.58 EPS. The company’s revenue for the quarter was down 11.1% on a year-over-year basis. On average, analysts anticipate that TripAdvisor will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Almir Ambeskovic sold 8,000 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $9.45, for a total transaction of $75,600.00. Following the sale, the chief executive officer owned 30,456 shares of the company’s stock, valued at $287,809.20. The trade was a 20.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On TripAdvisor

Several large investors have recently made changes to their positions in TRIP. Sterling Capital Management LLC grew its stake in shares of TripAdvisor by 128.4% in the 3rd quarter. Sterling Capital Management LLC now owns 3,026 shares of the travel company’s stock worth $25,000 after buying an additional 1,701 shares during the last quarter. Nykredit A S bought a new position in shares of TripAdvisor during the second quarter valued at $32,000. Public Employees Retirement System of Ohio bought a new position in shares of TripAdvisor during the second quarter valued at $36,000. Rockefeller Capital Management L.P. raised its position in shares of TripAdvisor by 192.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,767 shares of the travel company’s stock worth $40,000 after purchasing an additional 1,821 shares during the last quarter. Finally, Integrated Wealth Concepts LLC bought a new position in TripAdvisor in the 2nd quarter worth about $46,000. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

Key TripAdvisor News

Here are the key news stories impacting TripAdvisor this week:

• Negative Sentiment: Quarterly results disappointed. Tripadvisor reported adjusted earnings of $0.37 per share versus analysts’ $0.43 estimate, while revenue of $436.4 million fell short of the $447.4 million consensus and declined 11.1% year over year. The company also reported a $313.1 million net loss, including an approximately $370 million goodwill impairment charge. Tripadvisor earnings report
• Negative Sentiment: Executive departures and restructuring add uncertainty. CEO Matt Goldberg is leaving, and reports also cite the CFO’s departure and job cuts as Tripadvisor pursues an overhaul. The outgoing CEO said the company’s Experiences strategy fell short, raising questions about execution and the turnaround. Tripadvisor job cuts and Experiences overhaul
• Negative Sentiment: Analysts lowered targets, with two maintaining bearish ratings. Barclays cut its target from $9 to $8 and kept an Underweight rating; Cantor Fitzgerald lowered its target from $8 to $6 and also rated the stock Underweight. B. Riley cut its target from $12.50 to $8.50 and moved to Neutral. Read More., Read More. and Read More.
• Negative Sentiment: A securities investigation adds another risk. A law firm announced an investigation into potential securities-law violations following the earnings-related selloff. This is an investigation notice, not a finding of wrongdoing. Investigation notice

TripAdvisor Company Profile

Tripadvisor, Inc (NASDAQ: TRIP) operates a global travel guidance and experiences platform. Its flagship Tripadvisor brand provides user-generated reviews, ratings, photos and travel information covering hotels, restaurants, attractions and destinations, helping travelers research and plan trips.

The company also operates Viator, an online marketplace for tours, activities and other travel experiences, and TheFork, a digital restaurant reservation platform serving diners and restaurants.