Zacks Investment Research Upgrades Expedia, Inc. (NASDAQ:EXPE) to Buy
Expedia, Inc. (NASDAQ:EXPE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The firm currently has a $174.00 price objective on the online travel company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 12.53% from the company’s previous close.
According to Zacks, “Expedia Inc., is one of the leading online travel companies in the world. The company's first-quarter 2017 loss was narrower-than-expected and revenues beat the Zacks Consensus Estimate. Year-to-date, the stock has underperformed the Zacks characterized Electronic Commerce industry. The company's 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.”
A number of other equities research analysts have also recently issued reports on the stock. Deutsche Bank AG restated a “buy” rating and set a $158.00 price target (up from $138.00) on shares of Expedia in a report on Saturday, April 29th. MKM Partners restated a “buy” rating and set a $165.00 price target (up from $145.00) on shares of Expedia in a report on Monday, May 8th. Susquehanna Bancshares Inc restated a “positive” rating and set a $165.00 price target (up from $143.00) on shares of Expedia in a report on Monday, May 1st. Oppenheimer Holdings, Inc. upped their price target on shares of Expedia from $145.00 to $150.00 and gave the company an “outperform” rating in a report on Monday, May 1st. Finally, Stifel Nicolaus cut shares of Expedia from a “buy” rating to a “hold” rating and upped their price target for the company from $133.00 to $135.00 in a report on Friday, April 28th. They noted that the move was a valuation call. Seven equities research analysts have rated the stock with a hold rating, twenty have assigned a buy rating and one has given a strong buy rating to the company’s stock. Expedia has an average rating of “Buy” and a consensus target price of $151.42.
Expedia (EXPE) traded down 0.12% during midday trading on Friday, hitting $154.45. The stock had a trading volume of 88,737 shares. The firm has a 50 day moving average price of $149.35 and a 200 day moving average price of $133.22. The stock has a market cap of $23.31 billion, a PE ratio of 78.40 and a beta of 0.93. Expedia has a one year low of $105.62 and a one year high of $156.39.
Expedia (NASDAQ:EXPE) last posted its quarterly earnings results on Thursday, April 27th. The online travel company reported ($0.15) EPS for the quarter, beating the consensus estimate of ($0.30) by $0.15. Expedia had a net margin of 3.36% and a return on equity of 11.01%. The business had revenue of $2.19 billion for the quarter, compared to analysts’ expectations of $2.14 billion. During the same period in the previous year, the company posted $0.09 EPS. Expedia’s revenue was up 15.0% on a year-over-year basis. Equities analysts expect that Expedia will post $5.30 EPS for the current year.
In other news, EVP Robert J. Dzielak sold 31,829 shares of the business’s stock in a transaction that occurred on Thursday, May 4th. The shares were sold at an average price of $140.00, for a total value of $4,456,060.00. Following the completion of the transaction, the executive vice president now directly owns 33,606 shares in the company, valued at approximately $4,704,840. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Susan C. Athey sold 670 shares of the business’s stock in a transaction that occurred on Tuesday, May 2nd. The shares were sold at an average price of $138.59, for a total transaction of $92,855.30. The disclosure for this sale can be found here. Insiders sold a total of 38,043 shares of company stock valued at $5,330,777 over the last 90 days. Corporate insiders own 20.95% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in the company. Schmidt P J Investment Management Inc. bought a new position in Expedia during the second quarter worth about $239,000. Crossvault Capital Management LLC boosted its position in Expedia by 9.8% in the second quarter. Crossvault Capital Management LLC now owns 37,295 shares of the online travel company’s stock worth $5,555,000 after buying an additional 3,340 shares in the last quarter. Butensky & Cohen Financial Security Inc. boosted its position in Expedia by 81.7% in the second quarter. Butensky & Cohen Financial Security Inc. now owns 5,039 shares of the online travel company’s stock worth $751,000 after buying an additional 2,266 shares in the last quarter. Prospera Financial Services Inc bought a new position in Expedia during the second quarter worth about $543,000. Finally, State Treasurer State of Michigan boosted its position in Expedia by 1.0% in the second quarter. State Treasurer State of Michigan now owns 39,984 shares of the online travel company’s stock worth $5,956,000 after buying an additional 400 shares in the last quarter. Institutional investors and hedge funds own 80.87% of the company’s stock.
Expedia Company Profile
Expedia, Inc is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, 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, Wotif Group, CarRentals.com and Classic Vacations.
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