Blue Grotto Capital LLC Grows Stock Holdings in TripAdvisor, Inc. $TRIP

Key Points

• Blue Grotto Capital increased its TripAdvisor stake by 24.2% in the fourth quarter, buying 315,000 additional shares to hold 1.615 million shares worth about $23.5 million.
• TripAdvisor agreed to sell its restaurant booking platform TheFork to American Express for $700 million in cash, a move seen as potentially unlocking value and freeing up capital.
• TripAdvisor’s latest earnings missed expectations, and analyst views remain mixed: the stock has a consensus Hold rating, even as some firms raised price targets or reiterated bullish ratings after the sale announcement.

Blue Grotto Capital LLC boosted its holdings in shares of TripAdvisor, Inc. (NASDAQ:TRIP - Free Report) by 24.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,615,000 shares of the travel company's stock after purchasing an additional 315,000 shares during the quarter. TripAdvisor comprises about 2.4% of Blue Grotto Capital LLC's investment portfolio, making the stock its 20th largest position. Blue Grotto Capital LLC owned about 1.38% of TripAdvisor worth $23,514,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. UMB Bank n.a. raised its stake in TripAdvisor by 295.2% during the fourth quarter. UMB Bank n.a. now owns 2,300 shares of the travel company's stock valued at $33,000 after purchasing an additional 1,718 shares in the last quarter. Kestra Advisory Services LLC bought a new position in TripAdvisor during the fourth quarter valued at $33,000. Smartleaf Asset Management LLC increased its position in TripAdvisor by 39.7% during the third quarter. Smartleaf Asset Management LLC now owns 2,482 shares of the travel company's stock valued at $42,000 after acquiring an additional 705 shares during the last quarter. Tower Research Capital LLC TRC increased its position in TripAdvisor by 308.1% during the second quarter. Tower Research Capital LLC TRC now owns 4,077 shares of the travel company's stock valued at $53,000 after acquiring an additional 3,078 shares during the last quarter. Finally, CIBC Private Wealth Group LLC bought a new position in TripAdvisor during the third quarter valued at $58,000. Hedge funds and other institutional investors own 98.99% of the company's stock.

More TripAdvisor News

Here are the key news stories impacting TripAdvisor this week:

• Positive Sentiment: TripAdvisor agreed to sell TheFork to American Express for $700 million in cash, a deal that highlights the value of its portfolio and may free up capital for higher-growth initiatives. Tripadvisor Enters into Agreement to Sell TheFork to American Express for $700 Million
• Positive Sentiment: Analysts reacted favorably to the sale, with Jefferies reiterating a Buy rating and saying the transaction could unlock hidden value; DA Davidson also raised its price target on TRIP to $15.50 while maintaining a Neutral stance. Jefferies’ Fuller Reiterates Buy on TripAdvisor After TheFork Sale Unlocks Hidden Value, Sees Upside to $15 Price Target
• Neutral Sentiment: American Express said it is buying TheFork to support its dining strategy after prior acquisitions of Resy and Tock, underscoring that the asset had strategic value to another buyer. American Express to buy Tripadvisor's restaurant booking platform TheFork in $700 million deal
• Negative Sentiment: TripAdvisor still faces a mixed analyst backdrop, including recent “Hold” views and prior put-option activity, suggesting some investors remain cautious despite the divestiture news. TripAdvisor, Inc. NASDAQ: TRIP Given Consensus Rating of "Hold" by Brokerages

TripAdvisor Trading Up 1.2%

NASDAQ TRIP opened at $12.56 on Tuesday. The company's 50-day moving average price is $10.95 and its 200-day moving average price is $11.97. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 1.36. The stock has a market cap of $1.46 billion, a PE ratio of 125.61, a PEG ratio of 2.44 and a beta of 0.90. TripAdvisor, Inc. has a 12 month low of $9.01 and a 12 month high of $20.16.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The travel company reported ($0.11) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.08). The company had revenue of $382.40 million during the quarter, compared to the consensus estimate of $384.69 million. TripAdvisor had a return on equity of 5.73% and a net margin of 0.99%.The company's revenue for the quarter was down 4.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.14 earnings per share. Equities research analysts forecast that TripAdvisor, Inc. will post 0.69 earnings per share for the current year.

Analysts Set New Price Targets

TRIP has been the topic of a number of analyst reports. BTIG Research reiterated a "buy" rating on shares of TripAdvisor in a research report on Monday. Wedbush initiated coverage on shares of TripAdvisor in a research report on Tuesday, June 2nd. They set an "outperform" rating and a $19.00 price objective on the stock. UBS Group cut their price objective on shares of TripAdvisor from $16.00 to $13.70 and set a "neutral" rating on the stock in a research report on Monday, April 27th. The Goldman Sachs Group cut their price objective on shares of TripAdvisor from $25.00 to $22.00 and set a "buy" rating on the stock in a research report on Tuesday, February 17th. Finally, Barclays cut their price objective on shares of TripAdvisor from $10.00 to $9.00 and set an "underweight" rating on the stock in a research report on Monday, May 11th. Five investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $15.12.

Insider Activity at TripAdvisor

In other news, CEO Almir Ambeskovic sold 8,000 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $12.30, for a total value of $98,400.00. Following the transaction, the chief executive officer directly owned 34,396 shares in the company, valued at approximately $423,070.80. This represents a 18.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.00% of the company's stock.

TripAdvisor Profile

TripAdvisor NASDAQ: TRIP is a leading online travel company that operates a digital platform for travel information, reviews and booking services. The company's flagship website and mobile apps allow users to access and contribute travel-related content—ranging from hotel and restaurant reviews to ratings for tours, attractions and vacation rentals—helping consumers plan and book trips around the world.

The core of TripAdvisor's offering is its community-driven review system, which aggregates user-generated feedback alongside editorial content and professional photography.

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