Here’s how investors should make decisions about buying, holding or selling TripAdvisor, Inc. (NASDAQ:TRIP) stock. On Tuesday, shares of TripAdvisor, Inc. (NASDAQ:TRIP) closed higher after an active session. The shares accumulated 0.85 points or 1.43 percent at $60.39 with a heavy trade volume of 4.797 million shares. After opening the session at $60.42, the shares went as high as $60.7004 and as low as $59.54, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $8.24 billion and now has 136.43 million shares outstanding. TripAdvisor, Inc. (TRIP) stock has gained 7.8 percent of market value in 21 trading days.
TRIP stock has a trailing 3-year beta of 1.34, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.68 a share in the trailing twelve months. The stock’s value has surged 11.96 percent year to date (YTD) against a rise of 57.64 percent in 12 month’s time. The company’s shares still trade -12.48 percent away from its 1-year high of $69.00 and 66.5 percent up from 52-week low of $36.27. The average consensus rating on the company is 3.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.
TripAdvisor, Inc. (TRIP) will probably climb -5.55 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $78 price as 12-month high target. This represents a whopping 29.16 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59.5, which represents a return potential of -1.47 percent when compared to the closing price of the stock of $60.39 on Tuesday, February 12. The lowest price target for the stock is $38 — slightly more than -37.08 percent from TRIP’s current share price.
History has shown that shares in TripAdvisor, Inc. have gone down on 14 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. Analysts are forecasting revenue to climb 6.8 percent to $343M in the fiscal fourth quarter, while earnings are seen soaring by nearly 383.33 percent to $0.29 per share. It earned $0.72 per share, better than the $0.48, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $458M, worse than the $469M analysts expected. Earnings are estimated to increase by -52.8 percent this year, 10.09 percent next year and continue to increase by 13.95 percent annually for the next 5 years.
Let’s take a look at some insider activity at TripAdvisor, Inc. (NASDAQ:TRIP) and see the pattern. The earliest insider trade took place on 12/04/2018. Kalvert Seth J parted with a total of 15.65 thousand shares of company at average share price of $65.14. The total for the sales was set at $1.02 million. After this transaction, the SVP, GC, Sec. account balance stood at 0 thousand shares. The stock lost -7.29 percent since that insider sale. On 11/12/2018, Watson Noel Bertram, Chief Accounting Officer, sold 0.72 thousand shares at a price per share of $63.3. This removed 45.77 thousand shares from the insider’s fortune and the stock saw a -4.6 percent retreat in value since the news became public. This transaction left 0 thousand shares in the Chief Accounting Officer account.
On 08/15/2018, Chief Accounting Officer Watson Noel Bertram performed a sale transaction worth $38.99 thousand. This sale at $53.71 each has eliminated 0.73 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 12.44 percent increase since the transaction was reported. The insider now is left with 0 thousand shares remaining in the account. Nishar Dipchand, who performs the Director job, sold 3.5 thousand shares for $199.75 thousand. The disposal occurred on 06/22/2018 was priced at $57.12 per share. The share price soared 5.72 percent since the reporting date. Nishar Dipchand now left with a stake of 17.25 thousand TRIP stock worth $1.04 million after the insider selling.
The stock is currently hovering around the first support level of $59.72. Below this, the next support is placed in the zone of $59.05. Till the time, the TRIP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58.29 on daily chart, which may remain a cause for concern. If the price breaks below $59.05 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $60.88 mark may result into a pull-back move towards $61.37 level.
Shares of TripAdvisor, Inc. (TRIP) are trading at a P/E ratio of 88.12 times earnings reported for the past 12 months. The industry TRIP operates in has an average P/E of 43.67. Its P/E ratio went as low as 48.23X and as high as 89.34 over the 5-year span.Further, it is sporting a 5.18 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.86. 94.8 percent is the gross profit margin for TripAdvisor, Inc. and operating margin sits at 10.7 percent. Along with this, the net profit margin is 1.4 percent.