Travelzoo (NASDAQ:TZOO) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts give Travelzoo a consensus Hold rating (5 analysts), split between two sells and three buys, with an average 12‑month price target of $18.00.
• The stock is trading well below that target—opening at $7.28 with a 12‑month range of $4.72–$16.56 and a market cap of about $79.5 million (P/E 19.47).
• The board authorized a 1,000,000‑share buyback, and insiders—led by CEO Holger Bartel, who bought 100,000 shares at $5.49—now own roughly 45.3% of the company.

Travelzoo (NASDAQ:TZOO - Get Free Report) has earned a consensus rating of "Hold" from the five analysts that are presently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation and three have given a buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $18.00.

TZOO has been the topic of a number of research analyst reports. Barrington Research decreased their price objective on shares of Travelzoo from $13.00 to $8.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Weiss Ratings cut Travelzoo from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, March 31st. Finally, Zacks Research downgraded shares of Travelzoo from a "hold" rating to a "strong sell" rating in a research report on Monday, March 2nd.

Travelzoo Price Performance

Shares of NASDAQ:TZOO opened at $7.28 on Tuesday. Travelzoo has a 12 month low of $4.72 and a 12 month high of $16.56. The firm has a market capitalization of $79.53 million, a P/E ratio of 19.47 and a beta of 0.79. The company's fifty day moving average price is $6.15 and its 200 day moving average price is $6.98.

Travelzoo (NASDAQ:TZOO - Get Free Report) last posted its earnings results on Thursday, February 19th. The information services provider reported $0.00 EPS for the quarter, missing analysts' consensus estimates of $0.11 by ($0.11). The firm had revenue of $22.47 million for the quarter, compared to analyst estimates of $22.54 million. Travelzoo had a negative return on equity of 132.89% and a net margin of 4.98%. On average, sell-side analysts anticipate that Travelzoo will post 0.64 EPS for the current year.

Travelzoo announced that its Board of Directors has authorized a stock buyback program on Thursday, March 5th that authorizes the company to repurchase 1,000,000 outstanding shares. This repurchase authorization authorizes the information services provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, CEO Holger Bartel acquired 100,000 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were acquired at an average cost of $5.49 per share, for a total transaction of $549,000.00. Following the completion of the purchase, the chief executive officer directly owned 160,000 shares in the company, valued at $878,400. This trade represents a 166.67% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders purchased 200,000 shares of company stock worth $1,077,000 in the last three months. Insiders own 45.30% of the company's stock.

Institutional Investors Weigh In On Travelzoo

Hedge funds have recently bought and sold shares of the business. State of Wyoming grew its position in Travelzoo by 5.6% in the third quarter. State of Wyoming now owns 25,819 shares of the information services provider's stock worth $254,000 after acquiring an additional 1,376 shares in the last quarter. AlphaQuest LLC grew its stake in shares of Travelzoo by 57.8% in the third quarter. AlphaQuest LLC now owns 4,463 shares of the information services provider's stock worth $44,000 after acquiring an additional 1,635 shares during the last quarter. Bank of America Corp DE grew its position in Travelzoo by 1,242.5% in the 2nd quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider's stock worth $27,000 after purchasing an additional 1,988 shares during the last quarter. Quarry LP acquired a new position in shares of Travelzoo in the third quarter valued at $26,000. Finally, Wells Fargo & Company MN boosted its position in shares of Travelzoo by 76.2% during the 4th quarter. Wells Fargo & Company MN now owns 6,787 shares of the information services provider's stock valued at $48,000 after acquiring an additional 2,935 shares in the last quarter. 27.39% of the stock is owned by hedge funds and other institutional investors.

Travelzoo Company Profile

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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