Zacks Investment Research Downgrades Expedia Inc. (EXPE) to Sell
Expedia Inc. (NASDAQ:EXPE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Expedia, Inc., is one of the leading online travel companies in the world. The company’s second quarter revenue fell short of our estimates. The agency business looks good, which is no doubt benefiting from the ETP initiative. However, we think that the increased investments in the business, increasing competition across geographies, discounts offered by larger chain hotels and lack of ADR growth in emerging markets can make margin expansion difficult.”
EXPE has been the topic of a number of other reports. Cantor Fitzgerald reissued a “buy” rating on shares of Expedia in a research note on Friday, September 9th. Atlantic Securities raised Expedia from a “neutral” rating to an “overweight” rating and set a $130.00 price objective on the stock in a research note on Monday, June 20th. Jefferies Group reissued a “hold” rating on shares of Expedia in a research note on Monday, July 11th. Piper Jaffray Cos. reissued an “overweight” rating and issued a $147.00 price objective on shares of Expedia in a research note on Monday, August 1st. Finally, RBC Capital Markets reissued an “outperform” rating and issued a $160.00 price objective (down from $165.00) on shares of Expedia in a research note on Sunday, July 31st. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and seventeen have issued a buy rating to the stock. Expedia presently has a consensus rating of “Buy” and an average price target of $129.99.
Shares of Expedia (NASDAQ:EXPE) opened at 119.135 on Tuesday. The firm has a market capitalization of $17.84 billion, a price-to-earnings ratio of 88.379 and a beta of 0.68. Expedia has a 52-week low of $88.40 and a 52-week high of $140.51. The company’s 50 day moving average price is $112.58 and its 200 day moving average price is $110.89.
Expedia (NASDAQ:EXPE) last issued its quarterly earnings data on Thursday, July 28th. The online travel company reported $0.83 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.78 by $0.05. Expedia had a return on equity of 8.02% and a net margin of 2.33%. The business had revenue of $2.92 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same period last year, the business earned $0.89 EPS. The firm’s revenue was up 32.1% compared to the same quarter last year. Analysts forecast that Expedia will post $4.92 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Thursday, August 25th were issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.87%. The ex-dividend date of this dividend was Tuesday, August 23rd. This is an increase from Expedia’s previous quarterly dividend of $0.24. Expedia’s dividend payout ratio (DPR) is currently 72.73%.
In other Expedia news, EVP Mark D. Okerstrom sold 56,664 shares of the firm’s stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $114.97, for a total value of $6,514,660.08. Following the sale, the executive vice president now owns 100,543 shares of the company’s stock, valued at approximately $11,559,428.71. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Craig A. Jacobson sold 8,000 shares of the firm’s stock in a transaction on Tuesday, August 16th. The shares were sold at an average price of $116.54, for a total value of $932,320.00. Following the sale, the director now directly owns 40,896 shares in the company, valued at approximately $4,766,019.84. The disclosure for this sale can be found here. 20.95% of the stock is owned by company insiders.
Several large investors have recently added to or reduced their stakes in EXPE. Aperio Group LLC increased its stake in Expedia by 20.2% in the first quarter. Aperio Group LLC now owns 40,945 shares of the online travel company’s stock valued at $4,415,000 after buying an additional 6,891 shares during the period. Nisa Investment Advisors L.L.C. increased its stake in Expedia by 15.1% in the first quarter. Nisa Investment Advisors L.L.C. now owns 25,951 shares of the online travel company’s stock valued at $2,798,000 after buying an additional 3,400 shares during the period. Prudential Financial Inc. increased its stake in Expedia by 3.8% in the first quarter. Prudential Financial Inc. now owns 144,643 shares of the online travel company’s stock valued at $15,595,000 after buying an additional 5,270 shares during the period. RMB Capital Management LLC increased its stake in Expedia by 60.6% in the first quarter. RMB Capital Management LLC now owns 31,432 shares of the online travel company’s stock valued at $3,389,000 after buying an additional 11,859 shares during the period. Finally, BlackRock Group LTD increased its stake in Expedia by 1.8% in the first quarter. BlackRock Group LTD now owns 846,870 shares of the online travel company’s stock valued at $91,309,000 after buying an additional 14,779 shares during the period. 82.00% of the stock is currently owned by institutional investors.
Expedia, Inc is an online travel company. The Company makes travel products and services available, on a standalone and package basis, provided by various lodging properties, airlines, car rental companies, destination service providers, cruise lines and other travel product and service companies. Its Core OTA segment provides a range of travel and advertising services, through a range of brands, including Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Venere, Wotif Group, CarRentals.com, and Classic Vacations.
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