Headwater Capital Co Ltd Sells 570,000 Shares of TripAdvisor, Inc. $TRIP

Key Points

• Headwater Capital cut its TripAdvisor stake by 62% in the fourth quarter, selling 570,000 shares and leaving it with 350,000 shares worth about $5.1 million.
• Several analysts have turned cautious on TripAdvisor: JPMorgan and Barclays both lowered price targets and kept underweight ratings, while the stock’s overall consensus remains Hold with an average target of $15.19.
• TripAdvisor’s latest earnings disappointed, with Q1 EPS of -$0.11 versus expectations for -$0.03 and revenue of $382.4 million slightly below estimates, even as the company benefits from a $700 million sale of TheFork that could bolster its balance sheet and refocus growth efforts.

Headwater Capital Co Ltd lessened its stake in TripAdvisor, Inc. (NASDAQ:TRIP - Free Report) by 62.0% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 350,000 shares of the travel company's stock after selling 570,000 shares during the quarter. TripAdvisor makes up about 0.7% of Headwater Capital Co Ltd's holdings, making the stock its 16th largest position. Headwater Capital Co Ltd owned approximately 0.30% of TripAdvisor worth $5,096,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently modified their holdings of the stock. UMB Bank n.a. increased its position in shares of 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 acquiring an additional 1,718 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of TripAdvisor during the fourth quarter valued at approximately $33,000. Smartleaf Asset Management LLC increased its position in shares of 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 shares of 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 purchased a new stake in shares of TripAdvisor during the third quarter valued at approximately $58,000. Institutional investors own 98.99% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on TRIP shares. JPMorgan Chase & Co. decreased their price target on TripAdvisor from $12.00 to $11.00 and set an "underweight" rating for the company in a research report on Friday, May 8th. Zacks Research downgraded TripAdvisor from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Barclays decreased their price target on TripAdvisor from $10.00 to $9.00 and set an "underweight" rating for the company in a research report on Monday, May 11th. UBS Group decreased their price target on TripAdvisor from $16.00 to $13.70 and set a "neutral" rating for the company in a research report on Monday, April 27th. Finally, Wedbush increased their price target on TripAdvisor from $19.00 to $20.00 and gave the company an "outperform" rating in a research report on Tuesday. Five equities research 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's stock. According to data from MarketBeat.com, TripAdvisor currently has an average rating of "Hold" and a consensus price target of $15.19.

Insider Buying and Selling at TripAdvisor

In other news, CEO Almir Ambeskovic sold 8,000 shares of TripAdvisor stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $12.30, for a total value of $98,400.00. Following the completion of the transaction, the chief executive officer directly owned 34,396 shares in the company, valued at approximately $423,070.80. The trade was a 18.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.00% of the company's stock.

TripAdvisor Stock Performance

NASDAQ:TRIP opened at $12.81 on Wednesday. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.25 and a quick ratio of 1.25. The business has a fifty day simple moving average of $10.99 and a two-hundred day simple moving average of $11.96. TripAdvisor, Inc. has a 1 year low of $9.01 and a 1 year high of $20.16. The company has a market capitalization of $1.49 billion, a P/E ratio of 128.11, a P/E/G ratio of 2.47 and a beta of 0.90.

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

Key Stories Impacting TripAdvisor

Here are the key news stories impacting TripAdvisor this week:

• Positive Sentiment: The $700 million sale should unlock value for TripAdvisor and strengthen its balance sheet, while giving management more flexibility to invest in higher-growth areas such as experiences and Viator. Tripadvisor Enters into Agreement to Sell TheFork to American Express for $700 Million
• Positive Sentiment: Analysts viewed the divestiture as accretive to valuation, with Jefferies saying the transaction simplifies the business and could help surface hidden value in the stock. Tripadvisor sale of TheFork seen as accretive to valuation not outlook, says Jefferies
• Neutral Sentiment: The deal is expected to close before the end of fiscal 2026, so investors may continue to focus on execution and whether Tripadvisor can convert the asset sale into improved long-term growth. American Express to buy Tripadvisor's restaurant booking platform TheFork in $700 million deal
• Neutral Sentiment: DA Davidson raised its price target on TripAdvisor to $15.50 while keeping a neutral rating, suggesting some improved sentiment but not a full bullish call yet. TripAdvisor price target raised by DA Davidson
• Negative Sentiment: Some analysts warned that while the sale helps valuation, it does not fully offset longer-term pressure in Tripadvisor’s core business, including competition and macro headwinds. Tripadvisor sale of TheFork seen as accretive to valuation not outlook, says Jefferies

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.

Want to see what other hedge funds are holding TRIP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TripAdvisor, Inc. (NASDAQ:TRIP - Free Report).

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.