TripAdvisor (NASDAQ:TRIP) Sees Strong Trading Volume - Should You Buy?

Key Points

• Analyst sentiment is mixed to negative: TripAdvisor has a consensus “Reduce” rating, with 16 analysts issuing four Buys, seven Holds, and five Sells. The consensus price target is $14.76, near the stock’s latest price of $14.955.
• Recent results disappointed: TripAdvisor reported a quarterly loss of $0.11 per share versus the expected loss of $0.03, while revenue fell 4% year over year to $382.4 million, slightly below estimates.
• Trading and ownership activity remain notable: About 2.48 million shares changed hands, while institutional investors own 98.99% of the stock. CEO Almir Ambeskovic sold 8,000 shares under a pre-arranged trading plan.

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) shares saw an uptick in trading volume on Wednesday . Approximately 2,479,413 shares changed hands during trading, a decline of 31% from the previous session's volume of 3,602,308 shares.The stock last traded at $14.9550 and had previously closed at $14.93.

Wall Street Analyst Weigh In

Several brokerages recently commented on TRIP. BTIG Research cut TripAdvisor from a "buy" rating to a "neutral" rating in a research note on Tuesday, July 21st. Wedbush lifted their target price on shares of TripAdvisor from $19.00 to $20.00 and gave the company an "outperform" rating in a research note on Tuesday, June 16th. The Goldman Sachs Group restated a "buy" rating and set a $16.00 price target on shares of TripAdvisor in a research note on Monday, July 20th. UBS Group cut their price target on shares of TripAdvisor from $16.00 to $13.70 and set a "neutral" rating on the stock in a report on Monday, April 27th. Finally, DA Davidson lifted their price objective on shares of TripAdvisor from $10.50 to $15.50 and gave the company a "neutral" rating in a research note on Monday, June 15th. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, TripAdvisor has an average rating of "Reduce" and a consensus target price of $14.76.

TripAdvisor Stock Down 1.8%

The stock has a market cap of $1.71 billion, a P/E ratio of 146.53, a P/E/G ratio of 2.80 and a beta of 0.86. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 1.36. The firm's fifty day moving average is $12.78 and its 200 day moving average is $11.75.

TripAdvisor (NASDAQ:TRIP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The travel company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.08). The firm had revenue of $382.40 million for the quarter, compared to the consensus estimate of $384.69 million. TripAdvisor had a net margin of 0.99% and a return on equity of 5.73%. The firm's revenue was down 4.0% on a year-over-year basis. During the same quarter last year, the company earned $0.14 earnings per share. As a group, equities research analysts forecast that TripAdvisor, Inc. will post 0.69 EPS for the current year.

Insider Buying and Selling at TripAdvisor

In related news, CEO Almir Ambeskovic sold 8,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $12.30, for a total transaction of $98,400.00. Following the completion of the sale, the chief executive officer owned 34,396 shares in the company, valued at $423,070.80. This represents a 18.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. K.J. Harrison & Partners Inc grew its stake in shares of TripAdvisor by 316.7% in the first quarter. K.J. Harrison & Partners Inc now owns 125,000 shares of the travel company's stock worth $1,332,000 after acquiring an additional 95,000 shares during the last quarter. Leonteq Securities AG raised its stake in TripAdvisor by 153.9% during the 1st quarter. Leonteq Securities AG now owns 242,483 shares of the travel company's stock valued at $2,585,000 after purchasing an additional 146,977 shares during the last quarter. U S Global Investors Inc. raised its stake in TripAdvisor by 32.3% during the 1st quarter. U S Global Investors Inc. now owns 1,372,941 shares of the travel company's stock valued at $14,636,000 after purchasing an additional 335,087 shares during the last quarter. Blue Grotto Capital LLC boosted its holdings in TripAdvisor by 24.2% in the 4th quarter. Blue Grotto Capital LLC now owns 1,615,000 shares of the travel company's stock valued at $23,514,000 after purchasing an additional 315,000 shares during the period. Finally, Persistent Asset Partners Ltd bought a new stake in TripAdvisor in the 4th quarter valued at $1,456,000. 98.99% of the stock is owned by institutional investors.

About TripAdvisor

TripAdvisor NASDAQ: TRIP is a leading online travel company that operates a digital platform for travel information, reviews and booking services. The company's flagship website and mobile apps allow users to access and contribute travel-related content—ranging from hotel and restaurant reviews to ratings for tours, attractions and vacation rentals—helping consumers plan and book trips around the world.

The core of TripAdvisor's offering is its community-driven review system, which aggregates user-generated feedback alongside editorial content and professional photography.

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