Travelzoo (NASDAQ:TZOO) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Travelzoo has a consensus recommendation of Hold from five brokerages (1 sell, 1 hold, 3 buy) with an average 1-year price target of $18, while the stock trades around $6.19 with a market cap near $67.7M and a 12‑month range of $4.72–$16.56.
• The company recently missed quarterly EPS (reported $0.00 vs. $0.11 expected), posted a 4.98% net margin and a negative return on equity of -132.89%.
• Travelzoo’s board approved a repurchase program for up to 1,000,000 shares and CEO Holger Bartel bought 40,000 shares (insiders own 45.3%), indicating insider confidence despite mixed fundamentals.

Travelzoo (NASDAQ:TZOO - Get Free Report) has earned a consensus recommendation of "Hold" from the five brokerages that are covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $18.00.

Several brokerages have weighed in on TZOO. Zacks Research cut Travelzoo from a "hold" rating to a "strong sell" rating in a report on Monday, March 2nd. Barrington Research reduced their price objective on shares of Travelzoo from $13.00 to $8.00 and set an "outperform" rating for the company in a research note on Friday, February 20th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Travelzoo in a report on Friday, January 9th.

Travelzoo Trading Down 3.4%

NASDAQ TZOO opened at $6.19 on Friday. The stock has a market cap of $67.67 million, a PE ratio of 16.29 and a beta of 0.84. The company's 50-day moving average price is $5.97 and its 200-day moving average price is $7.45. Travelzoo has a 12 month low of $4.72 and a 12 month high of $16.56.

Travelzoo (NASDAQ:TZOO - Get Free Report) last posted its quarterly earnings results on Thursday, February 19th. The information services provider reported $0.00 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.11). Travelzoo had a net margin of 4.98% and a negative return on equity of 132.89%. The company had revenue of $22.47 million for the quarter, compared to the consensus estimate of $22.54 million. As a group, sell-side analysts forecast that Travelzoo will post 1.09 earnings per share for the current year.

Travelzoo declared that its Board of Directors has approved a share buyback program on Thursday, March 5th that permits the company to repurchase 1,000,000 shares. This repurchase authorization permits the information services provider to purchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Insider Activity at Travelzoo

In other Travelzoo news, CEO Holger Bartel bought 40,000 shares of Travelzoo stock in a transaction that occurred on Tuesday, February 24th. The shares were bought at an average cost of $5.43 per share, with a total value of $217,200.00. Following the transaction, the chief executive officer directly owned 200,000 shares of the company's stock, valued at approximately $1,086,000. This represents a 25.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In the last ninety days, insiders acquired 200,000 shares of company stock worth $1,077,000. Corporate insiders own 45.30% of the company's stock.

Institutional Trading of Travelzoo

A number of hedge funds have recently modified their holdings of the stock. Millennium Management LLC grew its stake in Travelzoo by 299.8% in the 1st quarter. Millennium Management LLC now owns 309,097 shares of the information services provider's stock valued at $4,213,000 after acquiring an additional 231,790 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Travelzoo by 170.5% in the 4th 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 during the last quarter. Geode Capital Management LLC grew its position in Travelzoo by 113.8% in the second quarter. Geode Capital Management LLC now owns 157,267 shares of the information services provider's stock worth $2,002,000 after acquiring an additional 83,719 shares during the period. Marshall Wace LLP purchased a new position in shares of Travelzoo during the 2nd quarter worth $504,000. Finally, Squarepoint Ops LLC increased its position in shares of Travelzoo by 224.5% during the fourth quarter. Squarepoint Ops LLC now owns 52,288 shares of the information services provider's stock valued at $372,000 after acquiring an additional 36,174 shares during the last quarter. Hedge funds and other institutional investors own 27.39% of the company's stock.

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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