TripAdvisor (NASDAQ:TRIP) Sets New 12-Month Low - Here's Why

Key Points

• TripAdvisor shares fell 3.2% to a new 52-week low of $8.27, well below their 50-day and 200-day moving averages of approximately $11.18 and $11.25.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and a $14.12 price target, with recent downgrades from UBS and JPMorgan.
• TripAdvisor’s latest quarterly results missed expectations, with EPS of $0.35 versus $0.38 expected and revenue of $385.3 million versus $506.27 million forecast; revenue declined 7.2% year over year.

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report)'s share price reached a new 52-week low during trading on Wednesday . The stock traded as low as $8.27 and last traded at $8.1060, with a volume of 400192 shares trading hands. The stock had previously closed at $8.55.

Wall Street Analyst Weigh In

Several brokerages have weighed in on TRIP. UBS Group dropped their price objective on shares of TripAdvisor from $15.00 to $12.00 and set a "neutral" rating for the company in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lowered their target price on shares of TripAdvisor from $11.00 to $10.00 and set an "underweight" rating on the stock in a report on Friday, August 7th. Wedbush lifted their price target on shares of TripAdvisor from $19.00 to $20.00 and gave the company an "outperform" rating in a research report on Tuesday, June 16th. Weiss Ratings reiterated a "sell (d)" rating on shares of TripAdvisor in a research report on Wednesday, August 12th. Finally, DA Davidson boosted their price target on TripAdvisor from $10.50 to $15.50 and gave the company a "neutral" rating in a research note on Monday, June 15th. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $14.12.

TripAdvisor Stock Down 3.2%

The firm's fifty day moving average is $11.18 and its 200-day moving average is $11.25. The company has a market capitalization of $969.83 million, a P/E ratio of 828.33, a price-to-earnings-growth ratio of 3.27 and a beta of 0.83. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.56 and a current ratio of 1.56.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The travel company reported $0.35 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03). The firm had revenue of $385.30 million during the quarter, compared to the consensus estimate of $506.27 million. TripAdvisor had a net margin of 0.28% and a return on equity of 4.23%. The firm's revenue was down 7.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.46 earnings per share. As a group, equities research analysts predict that TripAdvisor, Inc. will post 0.36 EPS for the current year.

Insider Transactions at TripAdvisor

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

Hedge Funds Weigh In On TripAdvisor

Hedge funds have recently made changes to their positions in the stock. Nykredit A S bought a new position in shares of TripAdvisor in the 2nd quarter worth $32,000. Public Employees Retirement System of Ohio purchased a new stake in TripAdvisor in the 2nd quarter valued at about $36,000. Rockefeller Capital Management L.P. lifted its holdings in TripAdvisor by 192.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,767 shares of the travel company's stock worth $40,000 after acquiring an additional 1,821 shares during the period. Integrated Wealth Concepts LLC bought a new stake in shares of TripAdvisor during the 2nd quarter worth $46,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in TripAdvisor in the second quarter valued at about $92,000. 98.99% of the stock is currently owned by institutional investors.

TripAdvisor Company Profile

Tripadvisor, Inc NASDAQ: TRIP operates a global travel guidance platform that helps consumers research, plan and book trips. Its flagship Tripadvisor website and mobile applications feature traveler reviews, ratings, photos and other user-generated content covering hotels, restaurants, attractions and destinations. The platform also provides travel-planning tools, advertising solutions and links to booking partners.

The company's portfolio includes Viator, an online marketplace for tours, activities and experiences, and TheFork, a restaurant-discovery and reservation platform.

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