Travelzoo (NASDAQ:TZOO) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Travelzoo from “hold” to “sell,” while analysts overall maintain a “hold” consensus with an average price target of $13.83.
• Travelzoo opened at $6.68, well below its 52-week high of $12.39, and reported a quarterly loss of $0.21 per share alongside revenue of $23.21 million, missing analyst estimates for both.
• Institutional investors own 27.39% of the company, with Millennium Management, Goldman Sachs, and Geode Capital among firms that recently increased their positions.

Travelzoo (NASDAQ:TZOO - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts have also recently commented on the stock. Ascendiant Capital Markets lowered their price target on shares of Travelzoo from $23.00 to $20.00 and set a "buy" rating on the stock in a report on Thursday. Zacks Research lowered Travelzoo from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Travelzoo in a report on Friday, August 14th. Barrington Research raised their target price on Travelzoo from $8.00 to $12.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. Finally, UBS Group set a $9.50 target price on Travelzoo in a research note on Wednesday, July 29th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $13.83.

Travelzoo Stock Performance

NASDAQ TZOO opened at $6.68 on Friday. Travelzoo has a 52-week low of $4.72 and a 52-week high of $12.39. The company has a 50-day simple moving average of $9.54 and a 200 day simple moving average of $8.21. The company has a market capitalization of $68.14 million, a PE ratio of 222.67 and a beta of 1.33.

Travelzoo (NASDAQ:TZOO - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The information services provider reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.35). Travelzoo had a negative return on equity of 9.35% and a net margin of 0.51%.The company had revenue of $23.21 million during the quarter, compared to the consensus estimate of $25.00 million. During the same period in the prior year, the firm posted $0.12 EPS. As a group, analysts forecast that Travelzoo will post -0.14 EPS for the current fiscal year.

Institutional Investors Weigh In On Travelzoo

A number of hedge funds and other institutional investors have recently bought and sold shares of TZOO. Millennium Management LLC lifted its position in shares of Travelzoo by 299.8% during the first quarter. Millennium Management LLC now owns 309,097 shares of the information services provider's stock worth $4,213,000 after acquiring an additional 231,790 shares in the last quarter. Goldman Sachs Group Inc. grew its position in shares of Travelzoo by 170.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 145,848 shares of the information services provider's stock valued at $1,038,000 after purchasing an additional 91,932 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Travelzoo by 113.8% in the second quarter. Geode Capital Management LLC now owns 157,267 shares of the information services provider's stock valued at $2,002,000 after purchasing an additional 83,719 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Travelzoo during the 2nd quarter valued at $644,000. Finally, Marshall Wace LLP bought a new stake in shares of Travelzoo during the 2nd quarter valued at $504,000. Institutional investors own 27.39% of the company's stock.

About Travelzoo

Travelzoo NASDAQ: TZOO is a global internet media company specializing in publishing curated travel, entertainment and local deals to a subscriber base of millions. Through its website, mobile applications and weekly email newsletters, Travelzoo partners with airlines, hotels, cruise lines, tour operators and local merchants to promote time-sensitive offers at discounted rates. The company generates revenue primarily from media commissions, advertising arrangements and marketing services provided to its hotel and resort partners.

Founded in 1998, Travelzoo went public on the NASDAQ in 2003 under the ticker symbol TZOO.

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