TripAdvisor (NASDAQ:TRIP) Stock Crosses Above 50-Day Moving Average - Here's Why

Key Points

• TripAdvisor shares rose 3.1% to $9.22 and crossed above their 50-day moving average of $9.09, though they remained below the 200-day average of $11.07.
• Analyst sentiment remained cautious: TripAdvisor had an average “Reduce” rating and a consensus price target of $14.04, with recent downgrades from B. Riley, UBS and BTIG Research.
• The company’s latest quarterly results missed expectations, reporting $0.35 in adjusted earnings per share versus $0.38 expected and revenue of $385.3 million versus $506.27 million estimated; revenue fell 7.2% year over year.

Shares of TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $9.09 and traded as high as $9.27. TripAdvisor shares last traded at $9.22, with a volume of 2,589,840 shares trading hands.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. B. Riley Financial dropped their target price on shares of TripAdvisor from $13.00 to $12.50 and set a "neutral" rating on the stock in a report on Monday, August 10th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $16.00 price objective on shares of TripAdvisor in a research report on Monday, July 20th. UBS Group decreased their target price on TripAdvisor from $15.00 to $12.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. BTIG Research cut TripAdvisor from a "buy" rating to a "neutral" rating in a report on Tuesday, July 21st. Finally, Weiss Ratings restated a "sell (d)" rating on shares of TripAdvisor in a research note on Wednesday, August 12th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $14.04.

TripAdvisor Trading Up 3.1%

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 business's 50-day moving average price is $9.09 and its two-hundred day moving average price is $11.07. The company has a market capitalization of $1.08 billion, a price-to-earnings ratio of 922.92, a P/E/G ratio of 3.60 and a beta of 0.86.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $385.30 million during the quarter, compared to analyst estimates of $506.27 million. TripAdvisor had a net margin of 0.28% and a return on equity of 4.23%. TripAdvisor's revenue was down 7.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.46 earnings per share. Research analysts predict that TripAdvisor, Inc. will post 0.34 earnings per share for the current year.

Insider Activity at TripAdvisor

In related news, CEO Almir Ambeskovic sold 8,000 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $9.45, for a total value 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 $287,809.20. The trade was a 20.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On TripAdvisor

A number of large investors have recently bought and sold shares of TRIP. BlackRock Inc. bought a new position in TripAdvisor in the second quarter valued at about $239,065,000. State Street Corp lifted its holdings in shares of TripAdvisor by 1.6% in the second quarter. State Street Corp now owns 4,966,046 shares of the travel company's stock worth $68,084,000 after acquiring an additional 77,501 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of TripAdvisor by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 3,973,534 shares of the travel company's stock worth $42,356,000 after acquiring an additional 210,591 shares during the last quarter. U S Global Investors Inc. lifted its holdings in shares of TripAdvisor by 32.0% in the third quarter. U S Global Investors Inc. now owns 1,840,229 shares of the travel company's stock worth $15,403,000 after acquiring an additional 446,255 shares during the last quarter. Finally, Converium Capital Inc. bought a new position in shares of TripAdvisor in the first quarter worth about $11,460,000. 98.99% of the stock is currently owned by institutional investors and hedge funds.

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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