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

Key Points

• UBS Group lowered TripAdvisor’s price target from $12 to $10 and maintained a “neutral” rating, implying roughly 6.3% upside from the prior close.
• Analyst sentiment remains cautious: TripAdvisor has an average “Reduce” rating and a consensus price target of $13.88, with recent target cuts from JPMorgan, B. Riley, and Cantor Fitzgerald.
• TripAdvisor’s latest quarterly results missed expectations, with EPS of $0.35 versus $0.38 expected and revenue of $385.3 million versus $506.27 million forecast; revenue declined 7.2% year over year.

TripAdvisor (NASDAQ:TRIP - Get Free Report) had its price objective reduced by research analysts at UBS Group from $12.00 to $10.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the travel company's stock. UBS Group's target price suggests a potential upside of 6.33% from the company's previous close.

Several other research analysts have also weighed in on TRIP. The Goldman Sachs Group reissued a "buy" rating and set a $16.00 price objective on shares of TripAdvisor in a report on Monday, July 20th. JPMorgan Chase & Co. cut their target price on shares of TripAdvisor from $11.00 to $10.00 and set an "underweight" rating on the stock in a research note on Friday, August 7th. B. Riley Financial reduced their price target on shares of TripAdvisor from $13.00 to $12.50 and set a "neutral" rating on the stock in a research report on Monday, August 10th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of TripAdvisor in a research report on Wednesday, August 12th. Finally, Cantor Fitzgerald decreased their price target on TripAdvisor from $9.00 to $8.00 and set an "underweight" rating for the company in a research note on Monday, October 19th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $13.88.

TripAdvisor Stock Down 0.4%

Shares of TripAdvisor stock traded down $0.04 on Tuesday, hitting $9.40. 584,460 shares of the company's stock traded hands, compared to its average volume of 3,630,457. TripAdvisor has a 52-week low of $8.02 and a 52-week high of $17.53. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 1.28. The stock has a market cap of $1.10 billion, a P/E ratio of 940.54, a PEG ratio of 3.60 and a beta of 0.87. The firm's 50-day moving average is $9.06 and its 200 day moving average is $11.01.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The travel company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03). The company had revenue of $385.30 million during the quarter, compared to the consensus estimate of $506.27 million. TripAdvisor had a return on equity of 4.23% and a net margin of 0.28%. The firm's quarterly revenue was down 7.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.46 EPS. Equities analysts anticipate that TripAdvisor will post 0.34 earnings per share for the current year.

Insider Transactions at TripAdvisor

In related 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 transaction 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is owned by company insiders.

Institutional Trading of TripAdvisor

Institutional investors have recently added to or reduced their stakes in the business. Hennessy Advisors Inc. boosted its position in TripAdvisor by 108.9% during the 3rd quarter. Hennessy Advisors Inc. now owns 23,062 shares of the travel company's stock valued at $193,000 after purchasing an additional 12,021 shares during the period. Verdence Capital Advisors LLC grew its stake in TripAdvisor by 73.5% during the 3rd quarter. Verdence Capital Advisors LLC now owns 58,634 shares of the travel company's stock worth $491,000 after buying an additional 24,836 shares during the last quarter. Wedbush Securities Inc. bought a new position in TripAdvisor during the 3rd quarter worth $86,000. Sterling Capital Management LLC grew its stake in TripAdvisor by 128.4% during the 3rd quarter. Sterling Capital Management LLC now owns 3,026 shares of the travel company's stock worth $25,000 after buying an additional 1,701 shares during the last quarter. Finally, U S Global Investors Inc. increased its position in TripAdvisor by 32.0% in the third quarter. U S Global Investors Inc. now owns 1,840,229 shares of the travel company's stock worth $15,403,000 after buying an additional 446,255 shares during the period. Institutional investors own 98.99% of the company's stock.

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.

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