Shares of TripAdvisor, Inc. (NASDAQ: TRIP) have received an average recommendation of “Reduce” from eleven brokerages currently covering the stock, according to data from MarketBeat.com. Among these analysts, three have issued sell recommendations, while eight have suggested holding the stock. The consensus price target for TripAdvisor stands at approximately $17.03 for the next year.
Recent research reports have highlighted various perspectives on TripAdvisor’s stock. On July 14, 2023, Bank of America initiated coverage, assigning a “neutral” rating and a price target of $19.00. In a noteworthy shift, Wall Street Zen downgraded the stock from “strong-buy” to “buy” on September 30, 2023. Additionally, Citigroup raised its price target from $16.00 to $19.00, maintaining a “neutral” rating as of August 18, 2023. Meanwhile, Mizuho initiated coverage with an “underperform” rating and a price target of $14.00, reflecting a cautious outlook. UBS Group reaffirmed its “neutral” stance on August 10, 2023.
Recent Earnings Reports and Stock Performance
TripAdvisor’s stock performance has drawn attention following its latest quarterly earnings report released on August 7, 2023. The travel company announced earnings per share (EPS) of $0.46, surpassing the consensus estimate of $0.43 by $0.03. The revenue for the quarter reached $529 million, slightly below expectations of $529.91 million. Notably, TripAdvisor reported a return on equity of 12.4% and a net margin of 3.53%. Revenue increased by 6.4% compared to the same quarter last year, when the company reported $0.39 EPS.
Looking ahead, TripAdvisor has set its guidance for the third quarter of 2025 and the fiscal year at an EPS of $0.46. Analysts predict that the company will maintain this earnings level throughout the current year.
Insider Transactions and Institutional Investment Trends
In related news, insider Seth J. Kalvert sold 10,880 shares of TripAdvisor on September 19, 2023, at an average price of $20.04, amounting to a total transaction value of $218,035.20. Following this sale, Kalvert retains 136,914 shares valued at approximately $2.74 million. This transaction represents a decrease of 7.36% in his holdings. The sale was documented in a filing with the Securities and Exchange Commission (SEC).
Institutional investors have also been active in adjusting their positions in TripAdvisor. Covestor Ltd raised its stake by 64.8% in the third quarter, acquiring an additional 696 shares, bringing its total to 1,770 shares valued at $29,000. Similarly, Smartleaf Asset Management LLC increased its holdings by 86.9% in the first quarter, now owning 3,055 shares valued at $43,000. Other institutions like Tower Research Capital LLC and Kayne Anderson Rudnick Investment Management LLC significantly boosted their investments as well, reflecting a broader interest among institutional investors in the stock.
Overall, approximately 98.99% of TripAdvisor’s shares are held by institutional investors and hedge funds, indicating a substantial level of confidence in the company’s long-term prospects, despite the recent analyst downgrades. As TripAdvisor navigates a competitive landscape, its performance and strategic decisions will be closely monitored by investors and analysts alike.
