Expedia Inc. (EXPE) Lowered to “Sell” at Zacks Investment Research
Expedia Inc. (NASDAQ:EXPE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Expedia, Inc., is one of the leading online travel companies in the world. The company’s second quarter revenue fell short of our estimates. The agency business looks good, which is no doubt benefiting from the ETP initiative. However, we think that the increased investments in the business, increasing competition across geographies, discounts offered by larger chain hotels and lack of ADR growth in emerging markets can make margin expansion difficult.”
Other analysts also recently issued reports about the stock. Deutsche Bank AG restated a “buy” rating on shares of Expedia in a research report on Sunday, July 10th. Barclays PLC boosted their price target on shares of Expedia from $120.00 to $130.00 and gave the stock an “overweight” rating in a research report on Friday, July 29th. Cantor Fitzgerald restated a “buy” rating and set a $175.00 price target on shares of Expedia in a research report on Tuesday, August 9th. Jefferies Group restated a “hold” rating and set a $125.00 price target on shares of Expedia in a research report on Tuesday, August 9th. Finally, Benchmark Co. reiterated a “buy” rating and issued a $135.00 target price on shares of Expedia in a report on Monday, August 1st. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and seventeen have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus price target of $130.17.
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Expedia (NASDAQ:EXPE) opened at 117.77 on Tuesday. The firm has a 50 day moving average of $112.73 and a 200-day moving average of $110.99. The firm has a market cap of $17.63 billion, a price-to-earnings ratio of 87.37 and a beta of 0.68. Expedia has a one year low of $88.40 and a one year high of $140.51.
Expedia (NASDAQ:EXPE) last released its quarterly earnings results on Thursday, July 28th. The online travel company reported $0.83 EPS for the quarter, topping analysts’ consensus estimates of $0.78 by $0.05. Expedia had a net margin of 2.33% and a return on equity of 8.02%. The company had revenue of $2.92 billion for the quarter, compared to the consensus estimate of $2.25 billion. During the same period in the previous year, the firm earned $0.89 EPS. Expedia’s revenue was up 32.1% on a year-over-year basis. Equities research analysts forecast that Expedia will post $4.92 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, August 25th were paid a dividend of $0.26 per share. This is a boost from Expedia’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a yield of 0.88%. The ex-dividend date of this dividend was Tuesday, August 23rd. Expedia’s dividend payout ratio is presently 72.73%.
In other news, insider Lance A. Soliday sold 1,500 shares of the stock in a transaction on Thursday, September 15th. The shares were sold at an average price of $111.00, for a total value of $166,500.00. Following the completion of the transaction, the insider now owns 2,915 shares in the company, valued at approximately $323,565. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Craig A. Jacobson sold 8,000 shares of the stock in a transaction on Tuesday, August 16th. The shares were sold at an average price of $116.54, for a total transaction of $932,320.00. Following the completion of the transaction, the director now owns 40,896 shares of the company’s stock, valued at approximately $4,766,019.84. The disclosure for this sale can be found here. Corporate insiders own 20.95% of the company’s stock.
Several institutional investors have recently made changes to their positions in the stock. Checchi Capital Advisers LLC boosted its position in shares of Expedia by 1.2% in the second quarter. Checchi Capital Advisers LLC now owns 962 shares of the online travel company’s stock worth $102,000 after buying an additional 11 shares in the last quarter. CENTRAL TRUST Co boosted its position in shares of Expedia by 2.1% in the second quarter. CENTRAL TRUST Co now owns 992 shares of the online travel company’s stock worth $106,000 after buying an additional 20 shares in the last quarter. Catamount Wealth Management boosted its position in shares of Expedia by 900.0% in the first quarter. Catamount Wealth Management now owns 1,000 shares of the online travel company’s stock worth $108,000 after buying an additional 900 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Expedia by 258.8% in the second quarter. Tower Research Capital LLC TRC now owns 1,245 shares of the online travel company’s stock worth $132,000 after buying an additional 898 shares in the last quarter. Finally, Penserra Capital Management LLC boosted its position in shares of Expedia by 194.6% in the second quarter. Penserra Capital Management LLC now owns 1,376 shares of the online travel company’s stock worth $146,000 after buying an additional 909 shares in the last quarter. Institutional investors own 82.00% of the company’s stock.
Expedia Company Profile
Expedia, Inc is an online travel company. The Company makes travel products and services available, on a standalone and package basis, provided by various lodging properties, airlines, car rental companies, destination service providers, cruise lines and other travel product and service companies. Its Core OTA segment provides a range of travel and advertising services, through a range of brands, including Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Venere, Wotif Group, CarRentals.com, and Classic Vacations.
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