Tripadvisor (NASDAQ:TRIP) Shares Down 9.4% on Disappointing Earnings

Tripadvisor, Inc. (NASDAQ:TRIP) was down 9.4% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $16.03 and last traded at $16.05. Approximately 1,715,871 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 2,457,725 shares. The stock had previously closed at $17.70.

The travel company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.08). Tripadvisor had a net margin of 1.98% and a return on equity of 10.37%.

Analyst Ratings Changes

Several equities research analysts have weighed in on TRIP shares. DA Davidson reaffirmed a “neutral” rating and issued a $16.00 price target on shares of Tripadvisor in a research note on Thursday. StockNews.com cut shares of Tripadvisor from a “buy” rating to a “hold” rating in a report on Thursday, January 9th. Cantor Fitzgerald reduced their price objective on shares of Tripadvisor from $12.00 to $11.00 and set an “underweight” rating for the company in a report on Thursday, November 7th. TD Cowen lifted their price objective on shares of Tripadvisor from $15.00 to $20.00 and gave the company a “hold” rating in a report on Thursday, November 7th. Finally, Wedbush reiterated a “neutral” rating and set a $17.00 price objective on shares of Tripadvisor in a report on Thursday, December 19th. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and two have given a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $17.50.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MassMutual Private Wealth & Trust FSB purchased a new position in Tripadvisor in the fourth quarter valued at about $295,000. Janney Montgomery Scott LLC purchased a new position in Tripadvisor in the fourth quarter valued at about $308,000. Charles Schwab Investment Management Inc. boosted its stake in Tripadvisor by 4.8% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,199,339 shares of the travel company’s stock valued at $17,378,000 after acquiring an additional 55,115 shares during the last quarter. Boussard & Gavaudan Investment Management LLP purchased a new position in Tripadvisor in the third quarter valued at about $5,159,000. Finally, Confluence Investment Management LLC boosted its stake in Tripadvisor by 43.6% in the fourth quarter. Confluence Investment Management LLC now owns 233,858 shares of the travel company’s stock valued at $3,454,000 after acquiring an additional 70,960 shares during the last quarter. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

Tripadvisor Trading Down 6.8 %

The company has a debt-to-equity ratio of 0.93, a current ratio of 1.85 and a quick ratio of 1.85. The stock has a market capitalization of $2.30 billion, a PE ratio of 71.74, a PEG ratio of 9.63 and a beta of 1.34. The stock’s 50 day simple moving average is $15.95 and its two-hundred day simple moving average is $15.00.

Tripadvisor Company Profile

TripAdvisor, Inc operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises.