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

TripAdvisor (NASDAQ:TRIP) was downgraded by research 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.

TRIP has been the topic of several other reports. BTIG Research cut TripAdvisor from a “buy” rating to a “neutral” rating in a research report on Tuesday, July 21st. Barclays decreased their target price on TripAdvisor from $9.00 to $8.00 and set an “underweight” rating for the company in a research report on Friday. The Goldman Sachs Group restated a “buy” rating and set a $16.00 target price on shares of TripAdvisor in a research note on Monday, July 20th. UBS Group dropped their price target on shares of TripAdvisor from $10.00 to $9.00 and set a “neutral” rating on the stock in a report on Friday. Finally, B. Riley Financial dropped their price target on shares of TripAdvisor from $12.50 to $8.50 and set a “neutral” rating on the stock in a report on Friday. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $12.71.

TripAdvisor Stock Down 5.1%

NASDAQ TRIP traded down $0.38 during mid-day trading on Thursday, reaching $7.00. The stock had a trading volume of 13,153,330 shares, compared to its average volume of 3,013,375. TripAdvisor has a 1 year low of $6.95 and a 1 year high of $16.04. The stock has a market cap of $820.40 million, a PE ratio of -2.27, a price-to-earnings-growth ratio of 3.80 and a beta of 0.87. The company has a fifty day moving average price of $8.94 and a 200 day moving average price of $10.91. 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 issued its earnings results on Thursday, November 5th. The travel company reported $0.37 EPS for the quarter, missing the consensus estimate 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 analysts’ expectations of $447.39 million. During the same quarter in the prior year, the business posted $0.58 earnings per share. The business’s revenue for the quarter was down 11.1% on a year-over-year basis. On average, research analysts expect that TripAdvisor will post 0.34 earnings per share for the current year.

Insider Buying and Selling at TripAdvisor

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

Institutional Trading of TripAdvisor

Several large investors have recently modified their holdings of the company. Nykredit A S purchased a new stake in TripAdvisor during the second quarter valued at $32,000. Public Employees Retirement System of Ohio purchased a new position in TripAdvisor in the second quarter worth about $36,000. Rockefeller Capital Management L.P. boosted its position in TripAdvisor by 192.5% in the fourth 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. Sterling Capital Management LLC grew its stake in shares of TripAdvisor by 128.4% during the 3rd quarter. Sterling Capital Management LLC now owns 3,026 shares of the travel company’s stock valued at $25,000 after purchasing an additional 1,701 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new stake in shares of TripAdvisor during the 2nd quarter valued at about $46,000. Institutional investors own 98.99% of the company’s stock.

Key Stories 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

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.