Travelzoo (NASDAQ:TZOO) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Travelzoo from hold to buy, adding to a generally positive analyst backdrop. The stock now has a consensus rating of Moderate Buy and a consensus price target of $15.67.
• Travelzoo shares were down 1.3% in midday trading to $10.92, with a market cap of about $112.26 million. The stock has traded between $4.72 and $14.00 over the past 52 weeks.
• The company recently reported earnings above expectations, posting $0.23 EPS versus a $0.16 estimate, though revenue of $24.27 million came in slightly below forecasts. Institutional investors have also been adding to positions, including significant increases by Millennium Management and Goldman Sachs.

Travelzoo (NASDAQ:TZOO - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Sunday.

Several other equities research analysts have also issued reports on the stock. Weiss Ratings upgraded shares of Travelzoo from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, May 19th. Ascendiant Capital Markets boosted their price objective on Travelzoo from $22.00 to $23.00 and gave the company a "buy" rating in a research note on Friday, May 22nd. Zacks Research raised shares of Travelzoo from a "strong sell" rating to a "hold" rating in a report on Thursday, April 23rd. UBS Group set a $12.00 target price on shares of Travelzoo in a research report on Friday, April 24th. Finally, Barrington Research lifted their target price on shares of Travelzoo from $8.00 to $12.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $15.67.

Travelzoo Trading Down 1.3%

Shares of NASDAQ:TZOO traded down $0.14 during midday trading on Friday, reaching $10.92. The company had a trading volume of 56,512 shares, compared to its average volume of 140,374. The company's 50 day moving average price is $10.31 and its 200 day moving average price is $7.80. The stock has a market cap of $112.26 million, a P/E ratio of 30.33 and a beta of 1.28. Travelzoo has a 52-week low of $4.72 and a 52-week high of $14.00.

Travelzoo (NASDAQ:TZOO - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The information services provider reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.16 by $0.07. The business had revenue of $24.27 million during the quarter, compared to the consensus estimate of $24.62 million. Travelzoo had a net margin of 4.32% and a negative return on equity of 101.85%. Research analysts forecast that Travelzoo will post 0.69 EPS for the current fiscal year.

Institutional Inflows and Outflows

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