TripAdvisor (NASDAQ:TRIP) Stock Gets Price Target Trim from B. Riley Financial

Key Points

• B. Riley Financial cut its TripAdvisor price target from $12.50 to $8.50 and maintained a “neutral” rating; the new target implies 19.63% upside from the prior close.
• Analyst views are mixed, but MarketBeat’s consensus rating is “Reduce,” with an average price target of $13.35. Cantor Fitzgerald also lowered its target to $6 and rated the stock “underweight.”
• TripAdvisor’s latest quarter missed expectations: earnings were $0.37 per share versus $0.43 expected, and revenue of $436.4 million fell 11.1% year over year. Shares declined 3.7% on Friday to $7.11.

TripAdvisor (NASDAQ:TRIP - Get Free Report) had its price target lowered by investment analysts at B. Riley Financial from $12.50 to $8.50 in a research report issued on Friday, Benzinga reports. The firm presently has a "neutral" rating on the travel company's stock. B. Riley Financial's target price would suggest a potential upside of 19.63% from the stock's previous close.

Other equities analysts have also issued reports about the company. BTIG Research lowered TripAdvisor from a "buy" rating to a "neutral" rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. decreased their target price 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. 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. UBS Group set a $9.00 price target on shares of TripAdvisor and gave the stock a "neutral" rating in a research report on Friday. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $16.00 price objective on shares of TripAdvisor in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $13.35.

TripAdvisor Trading Down 3.7%

Shares of TRIP stock traded down $0.28 during trading hours on Friday, hitting $7.11. 2,459,269 shares of the company's stock traded hands, compared to its average volume of 3,751,165. The stock's 50 day simple moving average is $9.00 and its 200 day simple moving average is $10.94. The stock has a market cap of $832.70 million, a PE ratio of 710.21, a price-to-earnings-growth ratio of 4.11 and a beta of 0.87. TripAdvisor has a 12 month low of $7.04 and a 12 month high of $16.04. 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 posted its quarterly earnings data on Thursday, November 5th. The travel company reported $0.37 earnings per share 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 analyst estimates of $447.39 million. TripAdvisor had a net margin of 0.28% and a return on equity of 4.23%. The business's revenue for the quarter was down 11.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.58 earnings per share. On average, sell-side analysts anticipate that TripAdvisor will post 0.34 EPS for the current year.

Insider Buying and Selling

In related news, CEO Almir Ambeskovic sold 8,000 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $9.45, for a total value of $75,600.00. Following the completion of the sale, the chief executive officer directly 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On TripAdvisor

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of TripAdvisor in the second quarter worth approximately $239,065,000. Converium Capital Inc. purchased a new position in shares of TripAdvisor during the first quarter valued at approximately $11,460,000. Bank of New York Mellon Corp purchased a new position in shares of TripAdvisor during the second quarter valued at approximately $9,963,000. Callodine Capital Management LP purchased a new position in shares of TripAdvisor during the first quarter valued at approximately $6,143,000. Finally, Empowered Funds LLC purchased a new position in shares of TripAdvisor during the second quarter valued at approximately $6,913,000. Institutional investors own 98.99% of the company's stock.

Trending Headlines about TripAdvisor

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

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.

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