TripAdvisor Sees Unusually High Options Volume (NASDAQ:TRIP)

Key Points

• Unusual bearish options activity: Traders bought 10,119 put options on TripAdvisor, about 54% above the typical volume.
• Analyst sentiment remains cautious: The consensus rating is “Reduce,” with an average price target of $14.04; recent firms downgraded the stock or lowered targets, although Goldman Sachs maintained a “buy” rating.
• TripAdvisor reported mixed financial performance: Shares rose 4.2% to $9.61, but the company missed quarterly earnings and revenue estimates, with revenue falling 7.2% year over year.

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) saw some unusual options trading activity on Monday. Stock traders acquired 10,119 put options on the stock. This represents an increase of approximately 54% compared to the typical volume of 6,559 put options.

Analyst Ratings Changes

Several research firms have commented on TRIP. Weiss Ratings reiterated a "sell (d)" rating on shares of TripAdvisor in a research note on Wednesday, August 12th. BTIG Research lowered shares of TripAdvisor from a "buy" rating to a "neutral" rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. cut their target price on TripAdvisor from $11.00 to $10.00 and set an "underweight" rating for the company in a research note on Friday, August 7th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $16.00 price target on shares of TripAdvisor in a report on Monday, July 20th. Finally, B. Riley Financial dropped their target price on shares of TripAdvisor from $13.00 to $12.50 and set a "neutral" rating for the company in a research report on Monday, August 10th. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat, TripAdvisor has a consensus rating of "Reduce" and an average price target of $14.04.

Insider Activity

In other news, CEO Almir Ambeskovic sold 8,000 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $9.45, for a total transaction of $75,600.00. Following the transaction, the chief executive officer owned 30,456 shares in the company, valued at approximately $287,809.20. This represents a 20.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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

Several institutional investors and hedge funds have recently made changes to their positions in TRIP. Hsbc Holdings PLC purchased a new position in TripAdvisor in the 2nd quarter worth about $3,883,000. Persistent Asset Partners Ltd purchased a new stake in shares of TripAdvisor during the 2nd quarter valued at about $2,172,000. Susquehanna Fundamental Investments LLC purchased a new stake in shares of TripAdvisor during the 2nd quarter valued at about $2,906,000. Deutsche Bank AG bought a new stake in shares of TripAdvisor in the second quarter worth approximately $1,760,000. Finally, K.J. Harrison & Partners Inc grew its stake in shares of TripAdvisor by 316.7% in the first quarter. K.J. Harrison & Partners Inc now owns 125,000 shares of the travel company's stock worth $1,332,000 after acquiring an additional 95,000 shares during the period. Institutional investors own 98.99% of the company's stock.

TripAdvisor Trading Up 4.2%

Shares of NASDAQ TRIP traded up $0.39 during trading hours on Monday, hitting $9.61. The company's stock had a trading volume of 1,025,750 shares, compared to its average volume of 3,631,104. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.56 and a current ratio of 1.56. The stock has a market cap of $1.13 billion, a price-to-earnings ratio of 962.46, a P/E/G ratio of 3.71 and a beta of 0.87. TripAdvisor has a 12 month low of $8.02 and a 12 month high of $17.53. The business has a 50-day simple moving average of $9.07 and a 200-day simple moving average of $11.04.

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

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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