TripAdvisor (NASDAQ:TRIP) Shares Gap Down – Here’s Why

TripAdvisor, Inc. (NASDAQ:TRIP) gapped down prior to trading on Tuesday . The stock had previously closed at $14.41, but opened at $13.85. TripAdvisor shares last traded at $14.0310, with a volume of 525,395 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. DA Davidson increased their price target on TripAdvisor from $10.50 to $15.50 and gave the stock a “neutral” rating in a research report on Monday, June 15th. Wedbush upped their target price on TripAdvisor from $19.00 to $20.00 and gave the company an “outperform” rating in a research report on Tuesday, June 16th. BTIG Research lowered TripAdvisor from a “buy” rating to a “neutral” rating in a report on Tuesday. UBS Group decreased their price target on TripAdvisor from $16.00 to $13.70 and set a “neutral” rating on the stock in a research report on Monday, April 27th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of TripAdvisor in a research note on Friday, May 15th. Four equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $14.76.

TripAdvisor Trading Down 3.9%

The firm’s 50-day simple moving average is $12.24 and its 200 day simple moving average is $11.78. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.25 and a quick ratio of 1.25. The firm has a market capitalization of $1.61 billion, a price-to-earnings ratio of 138.56, a P/E/G ratio of 2.86 and a beta of 0.86.

TripAdvisor (NASDAQ:TRIP) last issued its quarterly earnings results on Thursday, May 7th. The travel company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.08). TripAdvisor had a net margin of 0.99% and a return on equity of 5.73%. The business had revenue of $382.40 million during the quarter, compared to the consensus estimate of $384.69 million. During the same quarter in the previous year, the business posted $0.14 EPS. The company’s revenue for the quarter was down 4.0% on a year-over-year basis. Equities analysts expect that TripAdvisor, Inc. will post 0.69 earnings per share for the current year.

Insiders Place Their Bets

In other TripAdvisor news, CEO Almir Ambeskovic sold 8,000 shares of TripAdvisor stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $12.30, for a total value of $98,400.00. Following the transaction, the chief executive officer owned 34,396 shares in the company, valued at $423,070.80. The trade was a 18.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On TripAdvisor

A number of hedge funds have recently made changes to their positions in the stock. UMB Bank n.a. grew its holdings in shares of 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 position in TripAdvisor in the 4th quarter valued at approximately $33,000. Rockefeller Capital Management L.P. boosted its position 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 valued at $40,000 after buying an additional 1,821 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in TripAdvisor by 308.1% in 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 in the last quarter. Finally, CIBC Private Wealth Group LLC bought a new stake in shares of TripAdvisor during the third quarter worth $58,000. 98.99% of the stock is currently owned by institutional investors and hedge funds.

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.