Expedia Inc. (EXPE) Cut to “Sell” at Zacks Investment Research
Expedia Inc. (NASDAQ:EXPE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Expedia, Inc., is one of the leading online travel companies in the world. The company’s second quarter revenue fell short of our estimates. The agency business looks good, which is no doubt benefiting from the ETP initiative. However, we think that the increased investments in the business, increasing competition across geographies, discounts offered by larger chain hotels and lack of ADR growth in emerging markets can make margin expansion difficult.”
Several other research analysts have also recently issued reports on the stock. Cantor Fitzgerald reissued a “buy” rating on shares of Expedia in a report on Friday, September 9th. Jefferies Group reissued a “hold” rating and set a $125.00 target price on shares of Expedia in a report on Tuesday, August 9th. Morgan Stanley reissued a “hold” rating and set a $118.00 target price on shares of Expedia in a report on Wednesday, August 3rd. Piper Jaffray Cos. reissued an “overweight” rating and set a $147.00 target price on shares of Expedia in a report on Monday, August 1st. Finally, Benchmark Co. reissued a “buy” rating and set a $135.00 target price on shares of Expedia in a report on Monday, August 1st. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and seventeen have given a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus price target of $129.99.
Expedia (NASDAQ:EXPE) traded up 1.34% on Tuesday, hitting $118.59. 856,105 shares of the company’s stock traded hands. Expedia has a one year low of $88.40 and a one year high of $140.51. The stock has a 50-day moving average of $112.43 and a 200-day moving average of $110.76. The stock has a market cap of $17.75 billion, a PE ratio of 87.97 and a beta of 0.68.
Expedia (NASDAQ:EXPE) last posted its quarterly earnings data on Thursday, July 28th. The online travel company reported $0.83 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.78 by $0.05. Expedia had a net margin of 2.33% and a return on equity of 8.02%. The business earned $2.92 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same period in the previous year, the firm posted $0.89 earnings per share. The business’s revenue for the quarter was up 32.1% compared to the same quarter last year. On average, equities analysts forecast that Expedia will post $4.92 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Thursday, August 25th were issued a $0.26 dividend. This is a boost from Expedia’s previous quarterly dividend of $0.24. The ex-dividend date was Tuesday, August 23rd. This represents a $1.04 annualized dividend and a dividend yield of 0.89%. Expedia’s dividend payout ratio is presently 72.73%.
In other news, insider Lance A. Soliday sold 1,500 shares of the company’s stock in a transaction on Thursday, September 15th. The shares were sold at an average price of $111.00, for a total value of $166,500.00. Following the completion of the transaction, the insider now owns 2,915 shares in the company, valued at approximately $323,565. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Craig A. Jacobson sold 8,000 shares of the company’s stock in a transaction on Tuesday, August 16th. The shares were sold at an average price of $116.54, for a total transaction of $932,320.00. Following the completion of the transaction, the director now owns 40,896 shares of the company’s stock, valued at approximately $4,766,019.84. The disclosure for this sale can be found here. 20.95% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently modified their holdings of EXPE. Checchi Capital Advisers LLC boosted its position in shares of Expedia by 1.2% in the second quarter. Checchi Capital Advisers LLC now owns 962 shares of the online travel company’s stock valued at $102,000 after buying an additional 11 shares during the last quarter. CENTRAL TRUST Co boosted its position in shares of Expedia by 2.1% in the second quarter. CENTRAL TRUST Co now owns 992 shares of the online travel company’s stock valued at $106,000 after buying an additional 20 shares during the last quarter. Catamount Wealth Management boosted its position in shares of Expedia by 900.0% in the first quarter. Catamount Wealth Management now owns 1,000 shares of the online travel company’s stock valued at $108,000 after buying an additional 900 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Expedia by 258.8% in the second quarter. Tower Research Capital LLC TRC now owns 1,245 shares of the online travel company’s stock valued at $132,000 after buying an additional 898 shares during the last quarter. Finally, Penserra Capital Management LLC boosted its position in shares of Expedia by 194.6% in the second quarter. Penserra Capital Management LLC now owns 1,376 shares of the online travel company’s stock valued at $146,000 after buying an additional 909 shares during the last quarter. Institutional investors and hedge funds own 82.00% of the company’s stock.
Expedia, Inc is an online travel company. The Company makes travel products and services available, on a standalone and package basis, provided by various lodging properties, airlines, car rental companies, destination service providers, cruise lines and other travel product and service companies. Its Core OTA segment provides a range of travel and advertising services, 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, Venere, Wotif Group, CarRentals.com, and Classic Vacations.
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