TripAdvisor Inc. (NASDAQ: TRIP): Stock That Needs Special Handling


Eagle Capital Management LLC recently announced the acquisition of new stake in TripAdvisor Inc. (NASDAQ:TRIP). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.28% to 8.48 million shares with purchase of 23906.0 shares. This fresh investment now brings its stake to 6.99% valued currently at $161.3 million. In addition, Renaissance Technologies LLC raised its holdings by 1.27 million to 4.1 million shares. And Arrowstreet Capital LP has lifted its position by 146.23% or 1.69 million shares – to 2.85 million shares.

With over 2.59 million TripAdvisor Inc. (TRIP) shares trading Friday and a closing price of $20.23 on the day, the dollar volume was approximately $52.32 million. The shares have shown a positive weekly performance of 1.00% and its price on 07/31/20 lost nearly -3.80%. Currently, there are 136.00M common shares owned by the public and among those 95.41M 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: 22 analysts who have offered their price forecasts for TRIP have a consensus price objective of $20.21. The analysts have set the share’s price value over the next 12 months at a high of $32.00 and a low of $13.00 should the stock experience a downside. Incidentally, analysts’ outlook for the TripAdvisor Inc. stock is 3.00 for the next 12 months. The average price target is 1.08% above its last price level and an upside to the estimated low will see the stock lose -55.62% over that period. But an upside of 36.78% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

Insiders at the company have transacted a total of 68 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 42 of these insider trades were purchases, accounting for 358,406 shares. Insider sales of the common stock occurred on 26 occasions, with total insider shares sold totaling 131,571 shares.

The top 3 mutual fund holders in TripAdvisor Inc. are Fidelity Funds SICAV – Global Tec, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. Fidelity Funds SICAV – Global Tec owns 2.96 million shares of the company’s stock, all valued at over $56.24 million. The company bought an additional 0.85 million shares recently to bring their total holdings to about 2.44% of the shares outstanding. Vanguard Total Stock Market Index sold -0.3 million shares to see its total holdings shrink to 2.79 million shares valued at over $53.01 million and representing 2.30% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.23% of the shares outstanding.

Shares of TripAdvisor Inc. (NASDAQ: TRIP) opened at $20.81, down -$0.22 from a prior closing price of $21.03. However, the script later closed the day at $20.23, down -3.80%. The company’s stock has a 5-day price change of 1.00% and 10.13% over the past three months. TRIP shares are trading -33.41% year to date (YTD), with the 12-month market performance down to -47.90% lower. It has a 12-month low price of $13.73 and touched a high of $41.03 over the same period. Currently, 2.59 million shares have been traded, compared to an average intraday trading volume of 4.11 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.78%, -0.23%, and -16.75% respectively.

Institutional ownership of TripAdvisor Inc. (NASDAQ: TRIP) shares accounts for 84.30% of the company’s 136.00M shares outstanding. Mutual fund holders own 38.59%, while other institutional holders and individual stakeholders account for 42.78% and 35.82% respectively.

It has a market capitalization of $2.76B and a beta (3y monthly) value of 1.35. The stock’s trailing 12-month PE ratio is 34.06, while the earnings-per-share (ttm) stands at $0.59. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.11% over the week and 4.35% over the month.

Analysts forecast that TripAdvisor Inc. (TRIP) will achieve an EPS of -$0.66 for the current quarter, -$0.22 for the next quarter and $0.66 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.09 while analysts give the company a high EPS estimate of -$0.28. Comparatively, EPS for the current quarter was $0.45 a year ago. Earnings per share for the fiscal year are expected to increase by 11.00%, and 183.10% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 22 brokerage firm advisors rate TripAdvisor Inc. (TRIP) as a “Hold” at a consensus score of 3.00. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 12 of the 22 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the TRIP, a number of firms have released research notes about the stock. BTIG Research stated their Neutral rating for the stock in a research note on June 11, 2020, with the firm’s price target at . Deutsche Bank coverage for the TripAdvisor Inc. (TRIP) stock in a research note released on May 06, 2020 offered a Hold rating with a price target of $21. Citigroup was of a view on March 06, 2020 that the stock is Neutral, while Needham gave the stock Buy rating on February 14, 2020, issuing a price target of $45- $39. Cowen on their part issued Market Perform rating on November 18, 2019.


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