Barclays Issues Pessimistic Forecast for TripAdvisor (NASDAQ:TRIP) Stock Price

Key Points

• Barclays cut its TripAdvisor price target from $9 to $8 and maintained an “underweight” rating; Cantor Fitzgerald also lowered its target, to $6, and rated the stock “underweight.”
• TripAdvisor shares fell 2.4% to $7.21 on Friday, near their 12-month low of $7.03. Analysts’ average rating is “Reduce,” with an average price target of $13.27.
• Third-quarter results missed expectations: EPS was $0.37 versus $0.43 forecast, and revenue was $436.4 million versus $447.39 million, down 11.1% year over year.

TripAdvisor (NASDAQ:TRIP - Get Free Report) had its price objective cut by equities research analysts at Barclays from $9.00 to $8.00 in a report released on Friday, Benzinga reports. The brokerage currently has an "underweight" rating on the travel company's stock. Barclays's target price points to a potential upside of 11.03% from the stock's previous close.

Several other research analysts have also issued reports on the stock. Cantor Fitzgerald lowered their price target on shares of TripAdvisor from $8.00 to $6.00 and set an "underweight" rating for the company in a report on Friday. BTIG Research downgraded shares of TripAdvisor from a "buy" rating to a "neutral" rating in a research report on Tuesday, July 21st. UBS Group set a $9.00 price objective on shares of TripAdvisor and gave the company a "neutral" rating in a research note on Friday. JPMorgan Chase & Co. decreased their price objective on shares of TripAdvisor from $11.00 to $10.00 and set an "underweight" rating for the company in a research report on Friday, August 7th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of TripAdvisor in a research note on Wednesday, August 12th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $13.27.

TripAdvisor Trading Down 2.4%

Shares of NASDAQ TRIP traded down $0.17 during trading on Friday, reaching $7.21. The company had a trading volume of 3,109,992 shares, compared to its average volume of 3,753,018. The company's fifty day moving average price is $9.00 and its 200-day moving average price is $10.94. TripAdvisor has a 12 month low of $7.03 and a 12 month high of $16.04. The stock has a market cap of $844.42 million, a P/E ratio of 721.22, a PEG ratio of 4.11 and a beta of 0.87. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 1.28.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The travel company reported $0.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.06). TripAdvisor had a return on equity of 4.23% and a net margin of 0.28%. The company had revenue of $436.40 million for the quarter, compared to the consensus estimate of $447.39 million. During the same quarter last year, the business earned $0.58 earnings per share. TripAdvisor's revenue was down 11.1% compared to the same quarter last year. As a group, research analysts expect that TripAdvisor will post 0.34 earnings per share for the current year.

Insider Transactions at TripAdvisor

In other TripAdvisor news, CEO Almir Ambeskovic sold 8,000 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $9.45, for a total transaction of $75,600.00. Following the transaction, the chief executive officer directly owned 30,456 shares in the company, valued at approximately $287,809.20. This represents a 20.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.00% of the company's stock.

Institutional Trading of TripAdvisor

Several hedge funds have recently modified their holdings of TRIP. Maryland State Retirement & Pension System increased its holdings in shares of TripAdvisor by 50.4% during the third quarter. Maryland State Retirement & Pension System now owns 25,509 shares of the travel company's stock valued at $214,000 after acquiring an additional 8,551 shares in the last quarter. Jefferies Financial Group Inc. bought a new position in shares of TripAdvisor in the 3rd quarter worth $239,000. Illinois Municipal Retirement Fund increased its stake in TripAdvisor by 10.7% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 64,367 shares of the travel company's stock valued at $539,000 after purchasing an additional 6,214 shares in the last quarter. Ballast Asset Management LP increased its stake in TripAdvisor by 69.0% during the 3rd quarter. Ballast Asset Management LP now owns 307,025 shares of the travel company's stock valued at $2,570,000 after purchasing an additional 125,380 shares in the last quarter. Finally, Hennessy Advisors Inc. lifted its stake in shares of TripAdvisor by 108.9% in the third quarter. Hennessy Advisors Inc. now owns 23,062 shares of the travel company's stock valued at $193,000 after buying an additional 12,021 shares in the last quarter. Institutional investors own 98.99% of the company's stock.

TripAdvisor News Summary

Here are the key news stories impacting TripAdvisor this week:

• Neutral Sentiment: Tripadvisor announced a restructuring and job cuts as it reworks its strategy. The outgoing CEO reportedly said the Experiences overhaul fell short; cost reductions could help, but the need to reset the initiative highlights execution challenges. Tripadvisor Cuts Jobs, Outgoing CEO Says Experiences Overhaul Fell Short
• Negative Sentiment: Third-quarter adjusted earnings were $0.37 per share, below the $0.43 consensus cited in the earnings report, while revenue of $436.4 million missed estimates of $447.39 million and fell 11.1% year over year. Tripadvisor also reported a $313.1 million net loss, including an approximately $370 million goodwill impairment. Tripadvisor Q3 earnings report
• Negative Sentiment: CEO Matt Goldberg is stepping down and leaving the board, alongside a CFO transition. The leadership departures during a turnaround add uncertainty about strategy and execution. Tripadvisor CEO Matt Goldberg to step down
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $8 to $6 and assigned an “underweight” rating, signaling the analyst sees further downside. Cantor Fitzgerald recommendations
• Negative Sentiment: A law firm announced an investigation into potential securities-law violations following the earnings-related selloff. The investigation is an allegation, not a finding, but could add legal uncertainty. Investor 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.