TripAdvisor (NASDAQ:TRIP) Stock Rating Cut to Strong Sell at Zacks Research

Zacks Research lowered shares of TripAdvisor (NASDAQ:TRIP) from a hold rating to a strong sell rating in a report released on Thursday,Zacks reports.

Other equities analysts have also recently issued research reports about the company. Barclays cut their price objective on TripAdvisor from $9.00 to $8.00 and set an “underweight” rating for the company in a research report on Friday. BTIG Research lowered TripAdvisor from a “buy” rating to a “neutral” rating in a report on Tuesday, July 21st. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $16.00 price target on shares of TripAdvisor in a research report on Monday, July 20th. JPMorgan Chase & Co. cut their price target on TripAdvisor from $11.00 to $10.00 and set an “underweight” rating for the company in a report on Friday, August 7th. Finally, B. Riley Financial reduced their price objective on TripAdvisor from $12.50 to $8.50 and set a “neutral” rating for the company in a research report on Friday. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $12.71.

TripAdvisor Stock Performance

NASDAQ:TRIP traded down $0.38 during midday trading on Thursday, reaching $7.00. The stock had a trading volume of 13,153,330 shares, compared to its average volume of 3,013,375. The stock has a market capitalization of $820.40 million, a P/E ratio of -2.27, a PEG ratio of 3.80 and a beta of 0.87. TripAdvisor has a 1-year low of $6.95 and a 1-year high of $16.04. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.56 and a quick ratio of 1.56. The firm’s fifty day simple moving average is $8.94 and its 200-day simple moving average is $10.91.

TripAdvisor (NASDAQ:TRIP) last released its earnings results on Thursday, November 5th. The travel company reported $0.37 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.06). The firm had revenue of $436.40 million for the quarter, compared to analyst estimates of $447.39 million. TripAdvisor had a return on equity of 4.23% and a net margin of 0.28%. The firm’s revenue was down 11.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.58 EPS. On average, equities research analysts forecast that TripAdvisor will post 0.34 EPS for the current fiscal year.

Insider Activity at TripAdvisor

In other news, CEO Almir Ambeskovic sold 8,000 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $9.45, for a total transaction of $75,600.00. Following the completion of the transaction, the chief executive officer owned 30,456 shares of the company’s stock, valued at approximately $287,809.20. This represents a 20.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On TripAdvisor

Institutional investors have recently added to or reduced their stakes in the company. Maryland State Retirement & Pension System increased its position in shares of TripAdvisor by 50.4% during the third quarter. Maryland State Retirement & Pension System now owns 25,509 shares of the travel company’s stock valued at $214,000 after purchasing an additional 8,551 shares during the period. Jefferies Financial Group Inc. bought a new position in TripAdvisor in the third quarter worth $239,000. Illinois Municipal Retirement Fund lifted its position in TripAdvisor by 10.7% in the third quarter. Illinois Municipal Retirement Fund now owns 64,367 shares of the travel company’s stock worth $539,000 after purchasing an additional 6,214 shares during the period. Ballast Asset Management LP boosted its stake in TripAdvisor by 69.0% during the third quarter. Ballast Asset Management LP now owns 307,025 shares of the travel company’s stock worth $2,570,000 after buying an additional 125,380 shares in the last quarter. Finally, Hennessy Advisors Inc. boosted its stake in TripAdvisor by 108.9% during the third quarter. Hennessy Advisors Inc. now owns 23,062 shares of the travel company’s stock worth $193,000 after buying an additional 12,021 shares in the last quarter. 98.99% of the stock is owned by institutional investors and hedge funds.

More TripAdvisor News

Here are the key news stories impacting TripAdvisor this week:

• Negative Sentiment: Quarterly results disappointed. Tripadvisor reported adjusted earnings of $0.37 per share versus analysts’ $0.43 estimate, while revenue of $436.4 million fell short of the $447.4 million consensus and declined 11.1% year over year. The company also reported a $313.1 million net loss, including an approximately $370 million goodwill impairment charge. Tripadvisor earnings report
• Negative Sentiment: Executive departures and restructuring add uncertainty. CEO Matt Goldberg is leaving, and reports also cite the CFO’s departure and job cuts as Tripadvisor pursues an overhaul. The outgoing CEO said the company’s Experiences strategy fell short, raising questions about execution and the turnaround. Tripadvisor job cuts and Experiences overhaul
• Negative Sentiment: Analysts lowered targets, with two maintaining bearish ratings. Barclays cut its target from $9 to $8 and kept an Underweight rating; Cantor Fitzgerald lowered its target from $8 to $6 and also rated the stock Underweight. B. Riley cut its target from $12.50 to $8.50 and moved to Neutral. Read More., Read More. and Read More.
• Negative Sentiment: A securities investigation adds another risk. A law firm announced an investigation into potential securities-law violations following the earnings-related selloff. This is an investigation notice, not a finding of wrongdoing. Investigation notice

About TripAdvisor

Tripadvisor, Inc (NASDAQ: TRIP) operates a global travel guidance and experiences platform. Its flagship Tripadvisor brand provides user-generated reviews, ratings, photos and travel information covering hotels, restaurants, attractions and destinations, helping travelers research and plan trips.

The company also operates Viator, an online marketplace for tours, activities and other travel experiences, and TheFork, a digital restaurant reservation platform serving diners and restaurants.