TripAdvisor (NASDAQ:TRIP) Shares Gap Down - What's Next?

Key Points

• TripAdvisor shares gapped down before trading and were last around $14.03, after opening below the prior close of $14.41. The stock fell about 3.9% on the day.
• Wall Street sentiment remains cautious: recent analyst actions included a price target cut from Barclays, a downgrade from BTIG, and a sell rating from Weiss Ratings. The stock’s overall consensus rating is "Reduce" with an average price target of $14.76.
• TripAdvisor’s latest earnings missed expectations, reporting -$0.11 EPS versus the expected -$0.03, while revenue also came in slightly below estimates at $382.4 million. The company also saw a CEO share sale in early June, though it was made under a pre-arranged trading plan.

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $14.41, but opened at $13.85. TripAdvisor shares last traded at $14.0310, with a volume of 525,395 shares changing hands.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TRIP. Barclays lowered their price objective on shares of TripAdvisor from $10.00 to $9.00 and set an "underweight" rating on the stock in a research note on Monday, May 11th. Weiss Ratings reissued a "sell (d)" rating on shares of TripAdvisor in a research report on Friday, May 15th. DA Davidson upped their price objective on TripAdvisor from $10.50 to $15.50 and gave the company a "neutral" rating in a research note on Monday, June 15th. Wedbush raised their price objective on TripAdvisor from $19.00 to $20.00 and gave the company an "outperform" rating in a research report on Tuesday, June 16th. Finally, BTIG Research downgraded TripAdvisor from a "buy" rating to a "neutral" rating in a research note on Tuesday. Four research analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $14.76.

TripAdvisor Stock Down 3.9%

The firm has a market cap of $1.61 billion, a P/E ratio of 138.56, a P/E/G ratio of 2.86 and a beta of 0.86. The company has a debt-to-equity ratio of 1.36, a quick ratio of 1.25 and a current ratio of 1.25. The firm's fifty day moving average is $12.24 and its 200 day moving average is $11.78.

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 for the quarter, missing the consensus estimate of ($0.03) by ($0.08). The company had revenue of $382.40 million during 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% compared to the same quarter last year. During the same period in the prior year, the company earned $0.14 earnings per share. As a group, equities research analysts anticipate that TripAdvisor, Inc. will post 0.69 earnings per share for the current fiscal year.

Insider Buying and Selling at TripAdvisor

In related news, CEO Almir Ambeskovic sold 8,000 shares of TripAdvisor 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 directly owned 34,396 shares of the company's stock, valued at approximately $423,070.80. This trade represents a 18.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of TripAdvisor by 6.1% in the fourth quarter. Vanguard Group Inc. now owns 12,567,936 shares of the travel company's stock valued at $182,989,000 after acquiring an additional 721,957 shares during the period. Starboard Value LP increased its position in TripAdvisor by 1.4% during the fourth quarter. Starboard Value LP now owns 9,644,996 shares of the travel company's stock worth $140,431,000 after acquiring an additional 134,512 shares during the period. Ameriprise Financial Inc. raised its stake in TripAdvisor by 24.2% in the 3rd quarter. Ameriprise Financial Inc. now owns 7,416,019 shares of the travel company's stock worth $120,585,000 after purchasing an additional 1,445,607 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in TripAdvisor by 5.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,973,534 shares of the travel company's stock valued at $42,356,000 after purchasing an additional 210,591 shares during the period. Finally, River Road Asset Management LLC boosted its holdings in TripAdvisor by 1.7% in the 4th quarter. River Road Asset Management LLC now owns 3,448,718 shares of the travel company's stock valued at $50,213,000 after purchasing an additional 56,159 shares during the period. Institutional investors own 98.99% of the company's stock.

TripAdvisor Company Profile

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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