TripAdvisor (NASDAQ:TRIP) Hits New 52-Week Low Following Weak Earnings

Key Points

• TripAdvisor shares hit a new 52-week low, falling as much as 20.7% after quarterly results missed expectations. The stock traded as low as $8.01.
• Quarterly adjusted earnings were $0.37 per share versus $0.43 expected, while revenue of $436.4 million missed the $447.4 million forecast and fell 11.1% year over year.
• Analysts’ consensus rating is “Reduce,” with a $13.88 average price target; recent rating changes included price-target cuts and downgrades.

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) hit a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $8.01 and last traded at $8.3340, with a volume of 1,853,795 shares trading hands. The stock had previously closed at $10.20.

The travel company reported $0.37 earnings per share for the quarter, missing analysts' consensus estimates of $0.43 by ($0.06). The company had revenue of $436.40 million during the quarter, compared to analysts' expectations of $447.39 million. TripAdvisor had a return on equity of 4.23% and a net margin of 0.28%. TripAdvisor's quarterly revenue was down 11.1% compared to the same quarter last year. During the same period last year, the firm posted $0.58 earnings per share.

Analyst Ratings Changes

TRIP has been the subject of several research reports. The Goldman Sachs Group reiterated a "buy" rating and set a $16.00 price target on shares of TripAdvisor in a research note on Monday, July 20th. Cantor Fitzgerald cut their target price on TripAdvisor from $9.00 to $8.00 and set an "underweight" rating for the company in a research note on Monday, October 19th. JPMorgan Chase & Co. reduced their price target on shares of TripAdvisor from $11.00 to $10.00 and set an "underweight" rating for the company in a research report on Friday, August 7th. B. Riley Financial cut their price objective on TripAdvisor from $13.00 to $12.50 and set a "neutral" rating for the company in a report on Monday, August 10th. Finally, BTIG Research cut shares of TripAdvisor from a "buy" rating to a "neutral" rating in a research note on Tuesday, July 21st. Four equities research 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's stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $13.88.

Insider Activity at TripAdvisor

In other news, CEO Almir Ambeskovic sold 8,000 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $9.45, for a total value of $75,600.00. Following the completion of the sale, the chief executive officer directly owned 30,456 shares in the company, valued at approximately $287,809.20. The trade was a 20.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed 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 made changes to their positions in the business. Sterling Capital Management LLC boosted its stake in shares of TripAdvisor by 128.4% during the third quarter. Sterling Capital Management LLC now owns 3,026 shares of the travel company's stock valued at $25,000 after purchasing an additional 1,701 shares during the period. Nykredit A S bought a new position in shares of TripAdvisor in the second quarter worth approximately $32,000. Public Employees Retirement System of Ohio bought a new position in shares of TripAdvisor in the second quarter worth approximately $36,000. Rockefeller Capital Management L.P. grew its holdings in shares of TripAdvisor by 192.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,767 shares of the travel company's stock worth $40,000 after purchasing an additional 1,821 shares during the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new position in shares of TripAdvisor in the second quarter worth $46,000. Institutional investors own 98.99% of the company's stock.

TripAdvisor Trading Down 20.7%

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 firm's 50 day moving average is $9.05 and its 200 day moving average is $10.97. The company has a market capitalization of $947.56 million, a PE ratio of 805.21, a P/E/G ratio of 3.80 and a beta of 0.87.

About TripAdvisor

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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