Ascendiant Capital Markets Issues Pessimistic Forecast for Travelzoo (NASDAQ:TZOO) Stock Price

Key Points

• Ascendiant Capital Markets cut Travelzoo’s price target from $23 to $20 but maintained a “buy” rating, implying roughly 191% upside from the prior close.
• Analyst sentiment remains mixed: the stock has a consensus “hold” rating and a $13.83 average target, with recent ratings ranging from buy to strong sell.
• Travelzoo reported a quarterly loss of $0.21 per share, missing estimates by $0.35, while revenue of $23.21 million also fell short of expectations.

Travelzoo (NASDAQ:TZOO - Get Free Report) had its price target cut by analysts at Ascendiant Capital Markets from $23.00 to $20.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the information services provider's stock. Ascendiant Capital Markets' price target suggests a potential upside of 190.70% from the stock's previous close.

A number of other equities analysts also recently weighed in on TZOO. Wall Street Zen downgraded shares of Travelzoo from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. UBS Group set a $9.50 price objective on Travelzoo in a research report on Wednesday, July 29th. Barrington Research boosted their target price on Travelzoo from $8.00 to $12.00 and gave the company an "outperform" rating in a research note on Friday, April 24th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Travelzoo in a research report on Friday, August 14th. Finally, Zacks Research downgraded Travelzoo from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $13.83.

Travelzoo Price Performance

Shares of TZOO opened at $6.88 on Thursday. The business's 50-day moving average is $9.68 and its 200-day moving average is $8.21. The company has a market capitalization of $70.18 million, a price-to-earnings ratio of 229.33 and a beta of 1.33. Travelzoo has a fifty-two week low of $4.72 and a fifty-two week high of $12.39.

Travelzoo (NASDAQ:TZOO - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The information services provider reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.35). Travelzoo had a negative return on equity of 9.35% and a net margin of 0.51%.The company had revenue of $23.21 million for the quarter, compared to analyst estimates of $25.00 million. During the same quarter in the prior year, the business posted $0.12 earnings per share. Equities research analysts expect that Travelzoo will post -0.14 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of TZOO. Millennium Management LLC raised its holdings in Travelzoo by 299.8% during the first quarter. Millennium Management LLC now owns 309,097 shares of the information services provider's stock valued at $4,213,000 after buying an additional 231,790 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Travelzoo by 170.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 145,848 shares of the information services provider's stock worth $1,038,000 after buying an additional 91,932 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Travelzoo by 113.8% during the 2nd quarter. Geode Capital Management LLC now owns 157,267 shares of the information services provider's stock worth $2,002,000 after acquiring an additional 83,719 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Travelzoo during the 2nd quarter worth about $644,000. Finally, Marshall Wace LLP acquired a new position in shares of Travelzoo during the 2nd quarter valued at about $504,000. Institutional investors own 27.39% of the company's stock.

Travelzoo Company Profile

Travelzoo NASDAQ: TZOO is a global internet media company specializing in publishing curated travel, entertainment and local deals to a subscriber base of millions. Through its website, mobile applications and weekly email newsletters, Travelzoo partners with airlines, hotels, cruise lines, tour operators and local merchants to promote time-sensitive offers at discounted rates. The company generates revenue primarily from media commissions, advertising arrangements and marketing services provided to its hotel and resort partners.

Founded in 1998, Travelzoo went public on the NASDAQ in 2003 under the ticker symbol TZOO.

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