TripAdvisor (NASDAQ:TRIP) Shares Gap Down on Disappointing Earnings

TripAdvisor, Inc. (NASDAQ:TRIP)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.99, but opened at $10.94. TripAdvisor shares last traded at $11.3440, with a volume of 1,164,195 shares traded.

The travel company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.03). The business had revenue of $385.30 million for the quarter, compared to the consensus estimate of $506.27 million. TripAdvisor had a net margin of 0.99% and a return on equity of 5.73%. TripAdvisor’s revenue was down 7.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.46 earnings per share.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on TRIP shares. The Goldman Sachs Group reissued a “buy” rating and issued a $16.00 target price on shares of TripAdvisor in a report on Monday, July 20th. JPMorgan Chase & Co. reduced their price target on shares of TripAdvisor from $12.00 to $11.00 and set an “underweight” rating on the stock in a report on Friday, May 8th. UBS Group boosted their price target on shares of TripAdvisor from $13.70 to $15.00 and gave the stock a “neutral” rating in a research note on Thursday, July 30th. Weiss Ratings restated a “sell (d)” rating on shares of TripAdvisor in a research report on Friday, May 15th. Finally, DA Davidson lifted their target price on TripAdvisor from $10.50 to $15.50 and gave the stock a “neutral” rating in a report on Monday, June 15th. Four research analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $14.86.

Insiders Place Their Bets

In related news, CEO Almir Ambeskovic sold 8,000 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $12.30, for a total value of $98,400.00. Following the completion of the sale, the chief executive officer directly owned 34,396 shares in the company, valued at $423,070.80. This trade represents a 18.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On TripAdvisor

Several institutional investors have recently made changes to their positions in TRIP. UMB Bank n.a. grew its holdings in TripAdvisor by 295.2% during the 4th quarter. UMB Bank n.a. now owns 2,300 shares of the travel company’s stock valued at $33,000 after purchasing an additional 1,718 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in TripAdvisor in the fourth quarter worth about $33,000. Rockefeller Capital Management L.P. lifted its stake in TripAdvisor by 192.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,767 shares of the travel company’s stock worth $40,000 after purchasing an additional 1,821 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in shares of TripAdvisor by 308.1% during the second quarter. Tower Research Capital LLC TRC now owns 4,077 shares of the travel company’s stock valued at $53,000 after buying an additional 3,078 shares during the period. Finally, CIBC Private Wealth Group LLC purchased a new position in shares of TripAdvisor during the third quarter valued at approximately $58,000. Institutional investors own 98.99% of the company’s stock.

TripAdvisor Stock Performance

The stock has a market cap of $1.27 billion, a P/E ratio of 109.79, a PEG ratio of 2.81 and a beta of 0.86. The business has a 50 day moving average price of $13.29 and a 200 day moving average price of $11.74. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 1.36.

About TripAdvisor

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.