Travelzoo (NASDAQ:TZOO) Price Target Raised to $12.00 at Barrington Research

Key Points

• Barrington Research raised its price target on Travelzoo from $8.00 to $12.00 and kept an "outperform" rating, implying about a 26.6% upside from the prior close.
• Travelzoo beat quarterly EPS expectations ($0.23 vs. $0.16) while revenue was roughly in line, and the company announced a 1,000,000-share buyback; CEO Holger Bartel also bought 100,000 shares, and insiders increased holdings to 45.3% ownership.
• Analyst coverage is mixed—three Buy and two Sell ratings—leaving a MarketBeat consensus rating of Hold with a consensus price target of $19.33.

Travelzoo (NASDAQ:TZOO - Get Free Report) had its target price lifted by investment analysts at Barrington Research from $8.00 to $12.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the information services provider's stock. Barrington Research's price objective would indicate a potential upside of 26.58% from the stock's previous close.

Several other equities research analysts have also issued reports on the stock. Zacks Research lowered shares of Travelzoo from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Weiss Ratings lowered Travelzoo from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, March 31st. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $19.33.

Travelzoo Trading Up 26.6%

Shares of TZOO opened at $9.48 on Friday. The stock has a 50 day moving average of $6.31 and a 200 day moving average of $6.98. Travelzoo has a 12 month low of $4.72 and a 12 month high of $16.56. The company has a market capitalization of $103.62 million, a price-to-earnings ratio of 24.95 and a beta of 0.79.

Travelzoo (NASDAQ:TZOO - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The information services provider reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.07. The firm had revenue of $24.27 million during the quarter, compared to the consensus estimate of $24.62 million. Travelzoo had a negative return on equity of 132.89% and a net margin of 4.98%. As a group, equities research analysts predict that Travelzoo will post 0.64 earnings per share for the current year.

Travelzoo announced that its board has authorized a share buyback program on Thursday, March 5th that permits the company to buyback 1,000,000 outstanding shares. This buyback authorization permits the information services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Travelzoo

In other Travelzoo news, CEO Holger Bartel bought 100,000 shares of Travelzoo stock in a transaction that occurred on Monday, February 23rd. The stock was acquired at an average cost of $5.49 per share, for a total transaction of $549,000.00. Following the completion of the transaction, the chief executive officer directly owned 160,000 shares in the company, valued at $878,400. This represents a 166.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Insiders have acquired a total of 200,000 shares of company stock valued at $1,077,000 over the last quarter. Corporate insiders own 45.30% of the company's stock.

Institutional Trading of Travelzoo

A number of large investors have recently modified their holdings of TZOO. State of Alaska Department of Revenue bought a new stake in Travelzoo during the fourth quarter valued at approximately $25,000. Quarry LP purchased a new stake in shares of Travelzoo during the 3rd quarter valued at $26,000. Bank of America Corp DE lifted its holdings in shares of Travelzoo by 1,242.5% during the 2nd quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider's stock worth $27,000 after acquiring an additional 1,988 shares during the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Travelzoo by 42,900.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 3,010 shares of the information services provider's stock worth $38,000 after acquiring an additional 3,003 shares during the last quarter. Finally, AlphaQuest LLC grew its position in 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 in the last quarter. 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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