TripAdvisor Sees Unusually Large Options Volume (NASDAQ:TRIP)

Key Points

• TripAdvisor saw unusually heavy options activity on Monday, with investors buying 12,351 call options—about 115% above the typical volume.
• The stock rose 2.4% to $14.31, though trading volume was below average; TripAdvisor also trades well above its 50-day and 200-day moving averages.
• Recent earnings were weak, as the company reported a loss of $0.11 per share versus expectations for a smaller loss, and revenue missed estimates slightly while falling 4% year over year.

TripAdvisor, Inc. (NASDAQ:TRIP - Get Free Report) saw some unusual options trading activity on Monday. Investors purchased 12,351 call options on the company. This is an increase of approximately 115% compared to the typical volume of 5,746 call options.

TripAdvisor Stock Up 2.4%

TRIP stock traded up $0.34 during midday trading on Monday, hitting $14.31. The stock had a trading volume of 1,133,522 shares, compared to its average volume of 3,682,715. The firm has a market cap of $1.67 billion, a price-to-earnings ratio of 142.66, a price-to-earnings-growth ratio of 2.74 and a beta of 0.86. The business has a 50-day moving average of $11.80 and a two-hundred day moving average of $11.76. TripAdvisor has a 52-week low of $9.01 and a 52-week high of $20.16. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.25 and a quick ratio of 1.25.

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

Insider Activity at TripAdvisor

In related news, CEO Almir Ambeskovic sold 8,000 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $12.30, for a total transaction of $98,400.00. Following the transaction, the chief executive officer 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 Securities & Exchange Commission, which is accessible 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

A number of large investors have recently bought and sold shares of TRIP. Holocene Advisors LP increased its stake in shares of TripAdvisor by 78.5% during the third quarter. Holocene Advisors LP now owns 2,210,903 shares of the travel company's stock valued at $35,949,000 after purchasing an additional 972,369 shares in the last quarter. SG Americas Securities LLC boosted its position in shares of TripAdvisor by 1,712.3% in the 4th quarter. SG Americas Securities LLC now owns 1,107,995 shares of the travel company's stock worth $16,132,000 after purchasing an additional 1,046,858 shares in the last quarter. Leonteq Securities AG increased 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 in the last quarter. K.J. Harrison & Partners Inc increased its stake in TripAdvisor by 316.7% during the 1st quarter. K.J. Harrison & Partners Inc now owns 125,000 shares of the travel company's stock valued at $1,332,000 after purchasing an additional 95,000 shares in the last quarter. Finally, Blue Grotto Capital LLC raised its holdings in TripAdvisor by 24.2% in the fourth quarter. Blue Grotto Capital LLC now owns 1,615,000 shares of the travel company's stock worth $23,514,000 after buying an additional 315,000 shares during the last quarter. 98.99% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

TRIP has been the topic of a number of recent research reports. BTIG Research reaffirmed a "buy" rating on shares of TripAdvisor in a research note on Monday, June 15th. JPMorgan Chase & Co. lowered their target price on TripAdvisor from $12.00 to $11.00 and set an "underweight" rating for the company in a research note on Friday, May 8th. Weiss Ratings restated a "sell (d)" rating on shares of TripAdvisor in a report on Friday, May 15th. Bank of America upgraded TripAdvisor from a "neutral" rating to a "buy" rating and raised their price target for the stock from $14.00 to $15.00 in a research report on Friday, March 27th. Finally, UBS Group decreased their price target on TripAdvisor from $16.00 to $13.70 and set a "neutral" rating on the stock in a research note on Monday, April 27th. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, TripAdvisor presently has a consensus rating of "Hold" and an average target price of $15.19.

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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