TripAdvisor (NASDAQ:TRIP) Trading 6.1% Higher – Should You Buy?

TripAdvisor, Inc. (NASDAQ:TRIP)’s share price traded up 6.1% during trading on Tuesday . The company traded as high as $10.44 and last traded at $10.1930. 1,637,301 shares changed hands during trading, a decline of 45% from the average session volume of 2,988,185 shares. The stock had previously closed at $9.61.

Key Headlines Impacting TripAdvisor

Here are the key news stories impacting TripAdvisor this week:

• Positive Sentiment: Goldman Sachs kept a “buy” rating on TRIP while trimming its price target to $22 (from $25), signaling continued analyst confidence and implying substantial upside from current levels. Benzinga
• Positive Sentiment: Reuters reports that TripAdvisor has engaged with activist Starboard, which is seeking board control and exploring a sale — an outcome that could unlock shareholder value if it leads to strategic alternatives or governance changes. Reuters
• Positive Sentiment: Barron’s and other outlets highlight new activist campaigns in travel names (including TRIP), underscoring that robust travel demand plus poor recent stock performance makes such companies targets for value-focused activists. That narrative can attract investors betting on restructuring-led upside. Barron’s
• Neutral Sentiment: TripAdvisor issued an official statement about its engagement with Starboard, indicating management is in discussions — a sign the situation is active but not yet resolved. PR Newswire
• Neutral Sentiment: Coverage from TipRanks and Zacks frames TRIP as a value-ranked/contrarian idea; useful background for investors but not an immediate catalyst. TipRanks Zacks
• Neutral Sentiment: Travel content/marketing items (TripAdvisor’s Travelers’ Choice awards) are positive for brand but are unlikely to move the stock materially in the near term. PR Newswire – Top Beaches
• Negative Sentiment: Several sell-side firms have trimmed price targets: Wedbush cut its target (reported at $15 on one report and earlier noted at $12) and BTIG cut to $15 — a sign analysts are tempering near-term expectations after recent results. MSN – Wedbush BTIG via AmericanBankingNews
• Negative Sentiment: Recent quarterly results missed EPS expectations and contributed to the stock’s prior decline — this underpins activist pressure and keeps near-term execution concerns on investor radars. WSJ

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. The Goldman Sachs Group dropped their price target on TripAdvisor from $25.00 to $22.00 and set a “buy” rating on the stock in a research note on Tuesday. DA Davidson dropped their target price on shares of TripAdvisor from $16.25 to $11.00 and set a “neutral” rating on the stock in a report on Tuesday. Wedbush reduced their price objective on shares of TripAdvisor from $15.00 to $12.00 and set a “neutral” rating for the company in a research report on Friday. Mizuho set a $17.00 target price on TripAdvisor and gave the company a “neutral” rating in a research report on Friday, November 14th. Finally, UBS Group dropped their price objective on shares of TripAdvisor from $19.00 to $16.00 and set a “neutral” rating for the company in a research note on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, TripAdvisor has an average rating of “Hold” and an average price target of $15.32.

TripAdvisor Stock Performance

The company has a debt-to-equity ratio of 1.33, a quick ratio of 1.33 and a current ratio of 1.29. The company has a 50 day moving average price of $13.69 and a 200 day moving average price of $15.43. The company has a market capitalization of $1.23 billion, a price-to-earnings ratio of 35.13, a P/E/G ratio of 0.83 and a beta of 1.01.

TripAdvisor (NASDAQ:TRIP) last announced its earnings results on Thursday, February 12th. The travel company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.11). TripAdvisor had a net margin of 2.12% and a return on equity of 10.67%. The company had revenue of $411.00 million for the quarter, compared to analysts’ expectations of $412.53 million. During the same period in the previous year, the firm earned $0.30 EPS. The firm’s quarterly revenue was up .0% on a year-over-year basis. Equities research analysts predict that TripAdvisor, Inc. will post 0.46 earnings per share for the current fiscal year.

Institutional Investors Weigh In On TripAdvisor

Institutional investors and hedge funds have recently modified their holdings of the company. Certares Management LLC lifted its position in TripAdvisor by 177.3% during the second quarter. Certares Management LLC now owns 4,751,818 shares of the travel company’s stock valued at $62,011,000 after purchasing an additional 3,037,959 shares during the last quarter. Federated Hermes Inc. raised its holdings in shares of TripAdvisor by 375.4% during the second quarter. Federated Hermes Inc. now owns 2,137,374 shares of the travel company’s stock valued at $27,893,000 after acquiring an additional 1,687,816 shares in the last quarter. Alyeska Investment Group L.P. purchased a new stake in shares of TripAdvisor in the 3rd quarter worth about $26,848,000. Ameriprise Financial Inc. boosted its position in TripAdvisor by 24.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 7,416,019 shares of the travel company’s stock valued at $120,585,000 after acquiring an additional 1,445,607 shares in the last quarter. Finally, Blue Grotto Capital LLC purchased a new stake in TripAdvisor in the second quarter worth $15,686,000. 98.99% of the stock is owned by hedge funds and other institutional investors.

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.