TripAdvisor (NASDAQ:TRIP) Hits New 12-Month High on Earnings Beat

Key Points

• TripAdvisor's stock reached a new 52-week high of $19.26 after reporting better-than-expected earnings of $0.46 per share, surpassing the consensus estimate of $0.43.
• The company experienced a 6.4% increase in revenue compared to the same quarter last year, with total revenue of $529 million, although it fell slightly short of analysts' expectations.
• Wall Street analysts have mixed sentiments about TripAdvisor, with an average rating of "Hold" and a target price of $17.39, while two analysts rated it as a "buy."

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report)'s stock price reached a new 52-week high on Friday following a better than expected earnings announcement. The company traded as high as $19.26 and last traded at $19.00, with a volume of 3585456 shares trading hands. The stock had previously closed at $16.09.

The travel company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.03. The company had revenue of $529.00 million for the quarter, compared to analysts' expectations of $529.91 million. TripAdvisor had a net margin of 3.53% and a return on equity of 12.40%. The firm's revenue was up 6.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.39 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on TRIP. B. Riley lifted their target price on shares of TripAdvisor from $17.00 to $21.00 and gave the stock a "neutral" rating in a research report on Monday. Citigroup began coverage on shares of TripAdvisor in a research report on Wednesday, May 28th. They issued a "neutral" rating and a $16.00 target price on the stock. UBS Group restated a "neutral" rating on shares of TripAdvisor in a research report on Sunday. Wall Street Zen cut shares of TripAdvisor from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 14th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of TripAdvisor from $11.00 to $13.00 and gave the company an "underweight" rating in a research report on Friday, May 9th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat, TripAdvisor has an average rating of "Hold" and an average price target of $17.03.

Insider Activity

In related news, CEO Almir Ambeskovic sold 16,643 shares of the business's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $15.33, for a total transaction of $255,137.19. Following the sale, the chief executive officer owned 15,931 shares of the company's stock, valued at $244,222.23. The trade was a 51.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 3.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On TripAdvisor

Hedge funds have recently bought and sold shares of the business. Wittenberg Investment Management Inc. lifted its stake in shares of TripAdvisor by 80.0% in the first quarter. Wittenberg Investment Management Inc. now owns 126,000 shares of the travel company's stock worth $1,785,000 after buying an additional 56,000 shares in the last quarter. GAMMA Investing LLC increased its holdings in TripAdvisor by 904.8% during the first quarter. GAMMA Investing LLC now owns 36,927 shares of the travel company's stock valued at $523,000 after buying an additional 33,252 shares during the last quarter. Teacher Retirement System of Texas purchased a new stake in TripAdvisor during the first quarter valued at approximately $235,000. Point72 Asset Management L.P. increased its stake in shares of TripAdvisor by 483.9% in the fourth quarter. Point72 Asset Management L.P. now owns 723,904 shares of the travel company's stock worth $10,692,000 after purchasing an additional 599,933 shares in the last quarter. Finally, Lightrock Netherlands B.V. increased its stake in shares of TripAdvisor by 54.4% in the first quarter. Lightrock Netherlands B.V. now owns 791,287 shares of the travel company's stock worth $11,231,000 after purchasing an additional 278,821 shares in the last quarter. Institutional investors own 98.99% of the company's stock.

TripAdvisor Trading Up 0.6%

The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.37. The stock's 50 day moving average price is $15.76 and its 200-day moving average price is $14.92. The stock has a market capitalization of $2.54 billion, a PE ratio of 37.26, a PEG ratio of 2.72 and a beta of 1.30.

About TripAdvisor

TripAdvisor, Inc operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises.