TripAdvisor (NASDAQ:TRIP) Rating Lowered to “Strong Sell” at Zacks Research

TripAdvisor (NASDAQ:TRIP) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday, Zacks reports.

A number of other research firms also recently issued reports on TRIP. B. Riley Financial decreased their target price on TripAdvisor from $12.50 to $8.50 and set a “neutral” rating for the company in a research report on Friday. Weiss Ratings reiterated a “sell (d)” rating on shares of TripAdvisor in a research note on Wednesday, August 12th. BTIG Research downgraded shares of TripAdvisor from a “buy” rating to a “neutral” rating in a research note on Tuesday, July 21st. Barclays lowered their price target on shares of TripAdvisor from $9.00 to $8.00 and set an “underweight” rating on the stock in a research report on Friday. Finally, The Goldman Sachs Group restated a “buy” rating and set a $16.00 price target on shares of TripAdvisor in a research note on Monday, July 20th. Three research analysts have rated the stock with a Buy rating, five have given a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, TripAdvisor currently has a consensus rating of “Reduce” and an average price target of $12.71.

TripAdvisor Stock Performance

Shares of TripAdvisor stock traded down $0.38 on Thursday, reaching $7.00. 13,153,330 shares of the company traded hands, compared to its average volume of 3,013,375. TripAdvisor has a 52 week low of $6.95 and a 52 week high of $16.04. The company has a 50 day moving average of $8.94 and a 200 day moving average of $10.91. The firm has a market capitalization of $820.40 million, a PE ratio of -2.27, a PEG ratio of 3.80 and a beta of 0.87. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.56 and a quick ratio of 1.56.

TripAdvisor (NASDAQ:TRIP) last posted 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). The company had revenue of $436.40 million during the quarter, compared to the consensus estimate of $447.39 million. TripAdvisor had a return on equity of 4.23% and a net margin of 0.28%. The company’s revenue for the quarter was down 11.1% compared to the same quarter last year. During the same period last year, the firm posted $0.58 EPS. Equities analysts forecast that TripAdvisor will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other TripAdvisor news, CEO Almir Ambeskovic sold 8,000 shares of TripAdvisor stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $9.45, for a total transaction of $75,600.00. Following the completion of the transaction, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On TripAdvisor

A number of institutional investors and hedge funds have recently modified their holdings of TRIP. BlackRock Inc. bought a new position in shares of TripAdvisor in the second quarter valued at approximately $239,065,000. Converium Capital Inc. bought a new stake in TripAdvisor during the 1st quarter worth approximately $11,460,000. Bank of New York Mellon Corp bought a new stake in TripAdvisor during the 2nd quarter worth approximately $9,963,000. Callodine Capital Management LP purchased a new stake in TripAdvisor in the 1st quarter worth approximately $6,143,000. Finally, Empowered Funds LLC purchased a new stake in TripAdvisor in the 2nd quarter worth approximately $6,913,000. 98.99% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting TripAdvisor

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

About TripAdvisor

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.