Is TravelCenters of America Inc. (NASDAQ: TA) Back In The Buying Zone?

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Dimensional Fund Advisors LP recently announced the acquisition of new stake in TravelCenters of America Inc. (NASDAQ:TA). The institutional investor has increased its shareholding in the Consumer Cyclical company by 11.06% to 0.43 million shares with purchase of 42569.0 shares. This fresh investment now brings its stake to 5.13% valued currently at $6.58 million. In addition, Eidelman Virant Capital, Inc. raised its holdings by 33996.0 to 0.21 million shares. And Goldman Sachs & Co. LLC (Private. has lifted its position by 95.78% or 0.1 million shares – to 0.2 million shares.

With over 0.46 million TravelCenters of America Inc. (TA) shares trading Thursday and a closing price of $13.43 on the day, the dollar volume was approximately $6.2 million. The shares have shown a positive weekly performance of 8.13% and its price on 07/16/20 gained nearly 6.33%. Currently, there are 8.38M common shares owned by the public and among those 8.01M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 1 analysts who have offered their price forecasts for TA have a consensus price objective of $33.00. The analysts have set the share’s price value over the next 12 months at a high of $33.00 and a low of $33.00 should the stock experience a downside. Incidentally, analysts’ outlook for the TravelCenters of America Inc. stock is 2.00 for the next 12 months. But an upside of 59.3% will see the stock hit the forecast high price target while mean target price for the stock is $33.00.

Insiders at the company have transacted a total of 30 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 200,200 shares. Insider sales of the common stock occurred on 8 occasions, with total insider shares sold totaling 20,448 shares.

The top 3 mutual fund holders in TravelCenters of America Inc. are DFA US Small Cap Value Portfolio, Bridgeway Ultra Small Company Fun, and Aberdeen Global Infrastructure Fu. DFA US Small Cap Value Portfolio owns 0.15 million shares of the company’s stock, all valued at over $2.36 million. The company bought an additional 36228.0 shares recently to bring their total holdings to about 1.84% of the shares outstanding. Bridgeway Ultra Small Company Fun bought 45200.0 shares to see its total holdings expand to 93120.0 shares valued at over $1.43 million and representing 1.12% of the shares outstanding. Aberdeen Global Infrastructure Fu now owns shares totaling to 1.03% of the shares outstanding.

Shares of TravelCenters of America Inc. (NASDAQ: TA) opened at $12.46, down -$0.17 from a prior closing price of $12.63. However, the script later closed the day at $13.43, up 6.33%. The company’s stock has a 5-day price change of 8.13% and 59.88% over the past three months. TA shares are trading -21.69% year to date (YTD), with the 12-month market performance down to -26.61% lower. It has a 12-month low price of $5.51 and touched a high of $23.26 over the same period. Currently, 0.46 million shares have been traded, compared to an average intraday trading volume of 301.45K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -20.03%, -6.85%, and 4.97% respectively.

Institutional ownership of TravelCenters of America Inc. (NASDAQ: TA) shares accounts for 19.80% of the company’s 8.38M shares outstanding. Mutual fund holders own 27.33%, while other institutional holders and individual stakeholders account for 5.34% and 10.50% respectively.

It has a market capitalization of $193.79M and a beta (3y monthly) value of 1.93. The stock’s trailing 12-month PE ratio is 4.05, while the earnings-per-share (ttm) stands at $3.32. The company has a PEG of 0.81 and a Quick Ratio of 0.60 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.00% over the week and 7.48% over the month.

Analysts forecast that TravelCenters of America Inc. (TA) will achieve an EPS of $0.68 for the current quarter, $1.35 for the next quarter and $0.76 for 2021. The lowest estimate earnings-per-share for the quarter is $0.68 while analysts give the company a high EPS estimate of $0.68. Comparatively, EPS for the current quarter was $0.15 a year ago. Earnings per share for the fiscal year are expected to increase by 98.30%, and 2000.00% over the next financial year. EPS should grow at an annualized rate of 5.00% over the next five years, compared to -12.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 1 brokerage firm advisors rate TravelCenters of America Inc. (TA) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 0 of the 1 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the TA, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on June 17, 2019, with the firm’s price target at $10-$9. B. Riley FBR coverage for the TravelCenters of America Inc. (TA) stock in a research note released on January 17, 2019 offered a Buy rating with a price target of $12. B. Riley FBR was of a view on November 07, 2018 that the stock is Buy, while B. Riley FBR Inc. gave the stock Buy rating on March 01, 2018, issuing a price target of $10- $9. Citigroup on their part issued Neutral rating on December 08, 2017.

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