Expedia, Inc. (EXPE) Rating Lowered 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 report issued on Monday.
According to Zacks, “Expedia Inc., is one of the leading online travel companies in the world. The company's second-quarter 2017 results beat the Zacks Consensus Estimate on both earnings and revenues. Year-to-date, the stock has underperformed the Zacks characterized Electronic Commerce industry. The company's 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 and discounts offered by larger chain hotels can make margin expansion difficult.”
Other research analysts have also issued research reports about the stock. Needham & Company LLC reaffirmed a “buy” rating on shares of Expedia in a research note on Wednesday, June 21st. Raymond James Financial, Inc. reaffirmed a “market perform” rating and issued a $139.00 price target on shares of Expedia in a research note on Thursday, May 18th. They noted that the move was a valuation call. Morgan Stanley reaffirmed an “equal weight” rating and issued a $170.00 price target (up previously from $135.00) on shares of Expedia in a research note on Tuesday, July 18th. Argus assumed coverage on shares of Expedia in a research note on Wednesday, July 5th. They issued a “buy” rating and a $178.00 price target on the stock. Finally, Oppenheimer Holdings, Inc. lifted their price target on shares of Expedia from $150.00 to $175.00 and gave the company an “outperform” rating in a research note on Wednesday, July 19th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, twenty-three have assigned a buy rating and one has assigned a strong buy rating to the stock. Expedia presently has an average rating of “Buy” and an average target price of $163.02.
Shares of Expedia (NASDAQ EXPE) opened at 145.36 on Monday. The firm has a 50-day moving average of $148.50 and a 200-day moving average of $140.80. The stock has a market cap of $22.04 billion, a P/E ratio of 68.40 and a beta of 0.97. Expedia has a 52-week low of $105.62 and a 52-week high of $161.00.
Expedia (NASDAQ:EXPE) last announced its quarterly earnings results on Thursday, July 27th. The online travel company reported $0.89 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.94 by ($0.05). Expedia had a net margin of 3.49% and a return on equity of 10.98%. The company had revenue of $2.59 billion during the quarter, compared to the consensus estimate of $2.55 billion. During the same period in the previous year, the firm posted $0.83 EPS. The business’s quarterly revenue was up 17.8% compared to the same quarter last year. On average, equities analysts expect that Expedia will post $5.06 EPS for the current fiscal year.
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In related news, CEO Dara Khosrowshahi sold 86,228 shares of the company’s stock in a transaction dated Tuesday, August 1st. The shares were sold at an average price of $154.12, for a total value of $13,289,459.36. Following the transaction, the chief executive officer now directly owns 518,576 shares in the company, valued at $79,922,933.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Vice Chairman Victor Kaufman sold 35,598 shares of the company’s stock in a transaction dated Monday, August 7th. The shares were sold at an average price of $149.29, for a total transaction of $5,314,425.42. Following the completion of the transaction, the insider now owns 167,673 shares in the company, valued at $25,031,902.17. The disclosure for this sale can be found here. Over the last quarter, insiders sold 146,826 shares of company stock worth $22,359,010. Corporate insiders own 20.88% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the stock. Cornerstone Capital Management Holdings LLC. grew its stake in shares of Expedia by 7.7% in the first quarter. Cornerstone Capital Management Holdings LLC. now owns 309,948 shares of the online travel company’s stock valued at $39,105,000 after acquiring an additional 22,056 shares in the last quarter. Hartwell J M Limited Partnership grew its stake in shares of Expedia by 229.1% in the second quarter. Hartwell J M Limited Partnership now owns 28,975 shares of the online travel company’s stock valued at $4,316,000 after acquiring an additional 20,170 shares in the last quarter. Morris Capital Advisors LLC acquired a new position in shares of Expedia in the first quarter valued at about $3,869,000. OZ Management LP acquired a new position in shares of Expedia in the second quarter valued at about $1,892,000. Finally, Swiss National Bank grew its stake in shares of Expedia by 2.9% in the second quarter. Swiss National Bank now owns 450,370 shares of the online travel company’s stock valued at $67,083,000 after acquiring an additional 12,700 shares in the last quarter. Institutional investors and hedge funds own 84.42% 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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