TripAdvisor (NASDAQ:TRIP) Hits New 12-Month Low - What's Next?

Key Points

• TripAdvisor shares fell to a new 52-week low of $8.98, trading about 2.5% lower and well below their 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the consensus rating is “Reduce” with a $14.12 target price, while several firms recently cut their targets and maintained neutral or underweight ratings.
• Recent results missed expectations, with adjusted EPS of $0.35 versus $0.38 expected and revenue of $385.3 million versus $506.27 million expected; quarterly revenue declined 7.2% year over year.

Shares of TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) reached a new 52-week low on Tuesday . The stock traded as low as $8.98 and last traded at $9.0850, with a volume of 560093 shares traded. The stock had previously closed at $9.32.

Analyst Ratings Changes

Several equities analysts have commented on TRIP shares. JPMorgan Chase & Co. dropped their price target on shares of TripAdvisor from $11.00 to $10.00 and set an "underweight" rating on the stock in a research note on Friday, August 7th. Wedbush upped their target price on shares of TripAdvisor from $19.00 to $20.00 and gave the company an "outperform" rating in a report on Tuesday, June 16th. Cantor Fitzgerald dropped their target price on shares of TripAdvisor from $10.00 to $9.00 and set an "underweight" rating on the stock in a research report on Friday, August 7th. B. Riley Financial decreased their price objective on shares of TripAdvisor from $13.00 to $12.50 and set a "neutral" rating for the company in a research note on Monday, August 10th. Finally, UBS Group dropped their price objective on TripAdvisor from $15.00 to $12.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $14.12.

TripAdvisor Trading Down 2.5%

The business's 50 day simple moving average is $12.27 and its 200 day simple moving average is $11.35. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.56 and a quick ratio of 1.56. The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of 909.41, a price-to-earnings-growth ratio of 3.47 and a beta of 0.83.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last announced its 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). The business had revenue of $385.30 million for the quarter, compared to analyst estimates of $506.27 million. TripAdvisor had a return on equity of 4.23% and a net margin of 0.28%.TripAdvisor's quarterly revenue was down 7.2% on a year-over-year basis. During the same quarter last year, the company posted $0.46 EPS. Research analysts anticipate that TripAdvisor, Inc. will post 0.36 EPS for the current year.

Insider Activity at TripAdvisor

In other news, CEO Almir Ambeskovic sold 8,000 shares of TripAdvisor stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $9.45, for a total value of $75,600.00. Following the sale, the chief executive officer owned 30,456 shares of the company's stock, valued at $287,809.20. The trade was a 20.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On TripAdvisor

Several institutional investors and hedge funds have recently added to or reduced their stakes in TRIP. BlackRock Inc. purchased a new position in TripAdvisor in the second quarter valued at about $239,065,000. Alyeska Investment Group L.P. acquired a new stake in shares of TripAdvisor in the 3rd quarter worth approximately $26,848,000. Ameriprise Financial Inc. increased its stake in TripAdvisor by 24.2% in the 3rd quarter. Ameriprise Financial Inc. now owns 7,416,019 shares of the travel company's stock valued at $120,585,000 after purchasing an additional 1,445,607 shares in the last quarter. California State Teachers Retirement System raised its holdings in TripAdvisor by 961.6% during the second quarter. California State Teachers Retirement System now owns 1,506,660 shares of the travel company's stock worth $20,656,000 after purchasing an additional 1,364,739 shares during the last quarter. Finally, Converium Capital Inc. acquired a new position in TripAdvisor during the first quarter worth $11,460,000. Institutional investors and hedge funds own 98.99% of the company's stock.

About TripAdvisor

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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