Trip.com Group (NASDAQ:TCOM) Shares Gap Up - Time to Buy?

Key Points

• Trip.com Group shares gapped up before the open and were last trading around $43.53, up about 2.6% from the prior close of $42.45. The move came on moderate volume.
• Analysts remain mixed but generally positive, with an average Moderate Buy rating and a consensus price target of $63.20. However, several firms recently cut targets, and Zacks downgraded the stock to strong sell.
• The company’s latest earnings showed revenue growth of 17.2% year over year to $2.35 billion, but EPS of $0.83 missed estimates by $0.02. Trip.com also has a low debt load and strong profitability metrics, including a net margin of 48.26%.

Shares of Trip.com Group Limited Sponsored ADR (NASDAQ:TCOM - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $42.45, but opened at $44.88. Trip.com Group shares last traded at $43.5270, with a volume of 616,750 shares.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on TCOM shares. Zacks Research cut Trip.com Group from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 30th. Mizuho decreased their price objective on Trip.com Group from $79.00 to $65.00 and set an "outperform" rating on the stock in a report on Thursday, June 25th. Bank of America dropped their target price on Trip.com Group from $78.00 to $64.00 and set a "buy" rating for the company in a research report on Monday, June 29th. Weiss Ratings lowered Trip.com Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, June 25th. Finally, Nomura reduced their price target on shares of Trip.com Group from $71.00 to $51.00 and set a "neutral" rating on the stock in a research report on Friday, June 26th. Eight research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Trip.com Group has an average rating of "Moderate Buy" and an average price target of $63.20.

Trip.com Group Stock Up 2.6%

The stock has a market capitalization of $28.29 billion, a P/E ratio of 6.81, a PEG ratio of 3.25 and a beta of -0.03. The stock has a 50 day moving average price of $45.69 and a 200-day moving average price of $53.11. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.53 and a quick ratio of 1.53.

Trip.com Group (NASDAQ:TCOM - Get Free Report) last issued its earnings results on Thursday, June 25th. The company reported $0.83 earnings per share for the quarter, missing the consensus estimate of $0.85 by ($0.02). The company had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.30 billion. Trip.com Group had a net margin of 48.26% and a return on equity of 17.57%. The company's revenue was up 17.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.82 earnings per share. As a group, research analysts expect that Trip.com Group Limited Sponsored ADR will post 3.27 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of TCOM. TT International Asset Management LTD purchased a new stake in Trip.com Group in the fourth quarter worth $3,247,000. Robeco Institutional Asset Management B.V. lifted its position in Trip.com Group by 10.6% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 1,022,009 shares of the company's stock valued at $73,493,000 after acquiring an additional 97,866 shares during the period. APEIRON CAPITAL Ltd bought a new stake in Trip.com Group during the first quarter worth about $3,485,000. Boston Common Asset Management LLC boosted its stake in Trip.com Group by 104.1% during the fourth quarter. Boston Common Asset Management LLC now owns 335,934 shares of the company's stock worth $24,157,000 after acquiring an additional 171,358 shares in the last quarter. Finally, Osborne Partners Capital Management LLC grew its holdings in Trip.com Group by 21.9% in the fourth quarter. Osborne Partners Capital Management LLC now owns 175,820 shares of the company's stock worth $12,643,000 after purchasing an additional 31,620 shares during the period. Hedge funds and other institutional investors own 35.41% of the company's stock.

Trip.com Group Company Profile

Trip.com Group NASDAQ: TCOM is a China-based online travel services company that provides a broad range of consumer and business travel products. The company operates consumer-facing travel platforms and mobile apps that enable users to search, book and manage hotel reservations, airline tickets, packaged tours, rail travel, car rentals, airport transfers and local activities. It also offers corporate travel management and B2B solutions that support travel suppliers and downstream distribution partners.

Headquartered in Shanghai, Trip.com Group serves customers across China and increasingly in international markets through a portfolio of brands and global distribution channels.

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