Trip.com Group (NASDAQ:TCOM) Shares Gap Down on Analyst Downgrade

Key Points

• Trip.com Group shares fell after HSBC downgraded the stock from “buy” to “hold,” opening at $41.60 versus a prior close of $43.63 and later trading near $41.11.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $62.45, although several firms recently lowered their targets.
• The company reported quarterly revenue of $2.35 billion, up 17.2% year over year and above estimates, but earnings per share of $0.83 slightly missed the $0.85 consensus forecast.

Trip.com Group Limited Sponsored ADR (NASDAQ:TCOM - Get Free Report) shares gapped down prior to trading on Thursday after HSBC downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $43.63, but opened at $41.60. Trip.com Group shares last traded at $41.1110, with a volume of 1,210,479 shares.

A number of other equities analysts also recently commented on TCOM. Citigroup decreased their price target on Trip.com Group from $64.00 to $62.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. China Renaissance reaffirmed a "hold" rating and set a $42.00 target price on shares of Trip.com Group in a report on Thursday, July 2nd. Nomura decreased their target price on Trip.com Group from $71.00 to $51.00 and set a "neutral" rating for the company in a research report on Friday, June 26th. Benchmark reissued a "buy" rating on shares of Trip.com Group in a research report on Tuesday, July 28th. Finally, Bank of America restated a "buy" rating on shares of Trip.com Group in a research note on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $62.45.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Cantillon Capital Management LLC raised its stake in shares of Trip.com Group by 1.4% in the 4th quarter. Cantillon Capital Management LLC now owns 4,669,778 shares of the company's stock worth $335,804,000 after buying an additional 63,637 shares in the last quarter. Temasek Holdings Private Ltd boosted its holdings in shares of Trip.com Group by 67.1% in the fourth quarter. Temasek Holdings Private Ltd now owns 2,239,671 shares of the company's stock worth $161,055,000 after buying an additional 899,469 shares during the period. Federated Hermes Inc. boosted its stake in Trip.com Group by 6.5% in the 4th quarter. Federated Hermes Inc. now owns 1,621,454 shares of the company's stock worth $116,599,000 after purchasing an additional 98,386 shares during the period. CIBC Private Wealth Group LLC grew its holdings in shares of Trip.com Group by 4.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 796,100 shares of the company's stock valued at $57,248,000 after buying an additional 35,734 shares in the last quarter. Finally, Perseverance Asset Management International purchased a new position in Trip.com Group during the 1st quarter valued at about $33,608,000. Institutional investors and hedge funds own 35.41% of the company's stock.

Trip.com Group Price Performance

The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $26.81 billion, a PE ratio of 6.46, a P/E/G ratio of 3.49 and a beta of -0.05. The stock's 50-day moving average is $44.02 and its 200 day moving average is $48.45.

Trip.com Group (NASDAQ:TCOM - Get Free Report) last announced its quarterly earnings data on Thursday, June 25th. The company reported $0.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.85 by ($0.02). The firm had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.30 billion. Trip.com Group had a return on equity of 17.57% and a net margin of 48.26%.Trip.com Group's revenue was up 17.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.82 earnings per share. As a group, equities analysts predict that Trip.com Group Limited Sponsored ADR will post 3.14 earnings per share for the current year.

About Trip.com Group

Trip.com Group NASDAQ: TCOM is a China-based online travel services company that provides a broad range of consumer and business travel products. The company operates consumer-facing travel platforms and mobile apps that enable users to search, book and manage hotel reservations, airline tickets, packaged tours, rail travel, car rentals, airport transfers and local activities. It also offers corporate travel management and B2B solutions that support travel suppliers and downstream distribution partners.

Headquartered in Shanghai, Trip.com Group serves customers across China and increasingly in international markets through a portfolio of brands and global distribution channels.

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