TripAdvisor (NASDAQ:TRIP) Stock Price Up 6.5% - Here's Why

Key Points

• TripAdvisor shares rose 6.5% to $8.565 during Thursday trading, despite volume running 26% below the average daily level.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $14.12 price target, with recent firms maintaining neutral or sell views.
• The company’s latest quarter fell short of expectations, reporting $0.35 in adjusted EPS versus $0.38 expected and revenue of $385.3 million versus $506.27 million, down 7.2% year over year.

Shares of TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) shot up 6.5% during mid-day trading on Thursday . The stock traded as high as $8.35 and last traded at $8.5650. 2,742,547 shares changed hands during trading, a decline of 26% from the average daily volume of 3,699,209 shares. The stock had previously closed at $8.04.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. BTIG Research downgraded TripAdvisor from a "buy" rating to a "neutral" rating in a research note on Tuesday, July 21st. DA Davidson upped their price target on shares of TripAdvisor from $10.50 to $15.50 and gave the company a "neutral" rating in a report on Monday, June 15th. 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. B. Riley Financial reduced their target price on TripAdvisor from $13.00 to $12.50 and set a "neutral" rating on the stock in a research note on Monday, August 10th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of TripAdvisor in a report on Wednesday, August 12th. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $14.12.

TripAdvisor Stock Performance

The firm has a market cap of $1.00 billion, a PE ratio of 859.06, a P/E/G ratio of 3.18 and a beta of 0.83. The stock has a 50-day moving average price of $11.05 and a 200 day moving average price of $11.23. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.56 and a quick ratio of 1.56.

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

Insider Activity

In related news, CEO Almir Ambeskovic sold 8,000 shares of TripAdvisor 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 transaction, the chief executive officer owned 30,456 shares in the company, valued at approximately $287,809.20. The trade was a 20.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On TripAdvisor

Several institutional investors and hedge funds have recently modified their holdings of TRIP. BlackRock Inc. acquired a new position in TripAdvisor during the 2nd quarter worth approximately $239,065,000. State Street Corp lifted its position in shares of TripAdvisor by 1.6% during the second quarter. State Street Corp now owns 4,966,046 shares of the travel company's stock worth $68,084,000 after purchasing an additional 77,501 shares in the last quarter. River Road Asset Management LLC boosted its stake in shares of TripAdvisor by 1.7% in the fourth quarter. River Road Asset Management LLC now owns 3,448,718 shares of the travel company's stock valued at $50,213,000 after purchasing an additional 56,159 shares during the period. Dimensional Fund Advisors LP grew its holdings in TripAdvisor by 5.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,973,534 shares of the travel company's stock valued at $42,356,000 after purchasing an additional 210,591 shares in the last quarter. Finally, Blue Grotto Capital LLC grew its holdings in TripAdvisor by 24.2% during the 4th quarter. Blue Grotto Capital LLC now owns 1,615,000 shares of the travel company's stock valued at $23,514,000 after purchasing an additional 315,000 shares in the last quarter. Hedge funds and other institutional investors own 98.99% of the company's stock.

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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