Travelzoo (NASDAQ:TZOO) Stock Passes Above 200-Day Moving Average - What's Next?

Key Points

• Shares of Travelzoo moved above its 200-day moving average ($6.93), trading as high as $10.14 and last at $9.27 on volume of 152,158, suggesting a technical breakout.
• Analyst sentiment has improved with several upgrades and a mix of two Buy and two Hold ratings, resulting in a consensus price target of $15.67.
• Fundamentals and corporate actions show management confidence: Travelzoo beat EPS estimates ($0.23 vs. $0.16), the board authorized a 1,000,000-share buyback, and the CEO purchased 100,000 shares, lifting insider ownership materially.

Shares of Travelzoo (NASDAQ:TZOO - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $6.93 and traded as high as $10.14. Travelzoo shares last traded at $9.27, with a volume of 152,158 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on TZOO shares. Weiss Ratings upgraded shares of Travelzoo from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, April 24th. Barrington Research increased their price target on shares of Travelzoo from $8.00 to $12.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Zacks Research raised shares of Travelzoo from a "strong sell" rating to a "hold" rating in a report on Thursday, April 23rd. Finally, UBS Group set a $12.00 price target on shares of Travelzoo in a report on Friday, April 24th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $15.67.

Travelzoo Trading Down 5.4%

The stock's fifty day moving average price is $6.76 and its 200 day moving average price is $6.93. The stock has a market cap of $101.32 million, a P/E ratio of 25.75 and a beta of 1.27.

Travelzoo (NASDAQ:TZOO - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The information services provider reported $0.23 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.07. The firm had revenue of $24.27 million for the quarter, compared to analyst estimates of $24.62 million. Travelzoo had a net margin of 4.32% and a negative return on equity of 95.51%. On average, analysts anticipate that Travelzoo will post 0.7 earnings per share for the current year.

Travelzoo declared that its board has approved a stock buyback plan on Thursday, March 5th that allows the company to buyback 1,000,000 outstanding shares. This buyback authorization allows the information services provider to reacquire shares of its stock through open market purchases. Shares buyback plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity 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 shares were bought at an average price of $5.49 per share, with a total value of $549,000.00. Following the acquisition, the chief executive officer owned 160,000 shares in the company, valued at approximately $878,400. This trade represents a 166.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last 90 days, insiders have acquired 200,000 shares of company stock worth $1,077,000. 45.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Travelzoo

Institutional investors and hedge funds have recently made changes to their positions in the business. State of Alaska Department of Revenue bought a new position in shares of Travelzoo during the 4th quarter valued at $25,000. Quarry LP bought a new position in shares of Travelzoo during the 3rd quarter valued at $26,000. Bank of America Corp DE grew 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 valued at $27,000 after purchasing an additional 1,988 shares during the last quarter. JPMorgan Chase & Co. grew 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 valued at $38,000 after purchasing an additional 3,003 shares during the last quarter. Finally, AlphaQuest LLC grew its holdings in shares of Travelzoo by 57.8% during the 3rd quarter. AlphaQuest LLC now owns 4,463 shares of the information services provider's stock valued at $44,000 after purchasing an additional 1,635 shares during the last quarter. 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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