MakeMyTrip (NASDAQ:MMYT) Stock Price Down 5.6% - Time to Sell?

Key Points

• MakeMyTrip shares fell 5.6% to about $45.10, with trading volume down 72% from the average session volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $73.50, despite recent downgrades and target-price cuts.
• Institutional investors own 51.89% of the company, and several hedge funds increased their positions in the second quarter; however, the stock trades at a very high price-to-earnings ratio of 380.66.

MakeMyTrip Limited (NASDAQ:MMYT - Get Free Report) shares traded down 5.6% on Friday. The company traded as low as $45.21 and last traded at $45.0980. 364,894 shares were traded during mid-day trading, a decline of 72% from the average session volume of 1,285,016 shares. The stock had previously closed at $47.75.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on MMYT shares. The Goldman Sachs Group set a $84.00 price target on MakeMyTrip in a research note on Saturday, June 27th. Wall Street Zen lowered MakeMyTrip from a "hold" rating to a "sell" rating in a report on Saturday, August 29th. Bank of America cut their target price on MakeMyTrip from $71.00 to $60.00 and set a "buy" rating on the stock in a research report on Monday. HSBC assumed coverage on MakeMyTrip in a research report on Thursday, July 2nd. They issued a "buy" rating and a $70.00 price target for the company. Finally, Zacks Research downgraded shares of MakeMyTrip from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 18th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $73.50.

MakeMyTrip Price Performance

The business's fifty day moving average is $54.92 and its 200-day moving average is $49.58. The firm has a market cap of $4.31 billion, a PE ratio of 380.66 and a beta of 1.07.

Institutional Investors Weigh In On MakeMyTrip

A number of hedge funds have recently modified their holdings of MMYT. Carrhae Capital LLP lifted its stake in MakeMyTrip by 47.0% in the second quarter. Carrhae Capital LLP now owns 221,385 shares of the technology company's stock valued at $11,798,000 after purchasing an additional 70,823 shares during the last quarter. Carmignac Gestion increased its position in MakeMyTrip by 32.9% in the second quarter. Carmignac Gestion now owns 40,452 shares of the technology company's stock worth $2,156,000 after buying an additional 10,024 shares during the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of MakeMyTrip in the second quarter valued at $1,704,000. Flossbach Von Storch SE purchased a new position in shares of MakeMyTrip during the 2nd quarter valued at $2,664,000. Finally, Wasatch Advisors LP grew its stake in shares of MakeMyTrip by 5.7% during the 2nd quarter. Wasatch Advisors LP now owns 2,473,464 shares of the technology company's stock worth $131,811,000 after acquiring an additional 133,723 shares during the period. Institutional investors own 51.89% of the company's stock.

About MakeMyTrip

MakeMyTrip Limited is an online travel company that operates consumer travel platforms in India and other markets. Founded in 2000 by Deep Kalra, the company provides digital tools for researching, planning and booking travel through its websites and mobile applications.

Its services include airline and rail ticketing, hotel and accommodation reservations, holiday packages, bus tickets, car rentals and airport transfers. MakeMyTrip also offers travel-related services such as activities, travel insurance and other ancillary products, depending on the market and booking channel.

The company operates the MakeMyTrip and Goibibo brands, as well as the redBus intercity bus-ticketing platform.

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