Expedia (EXPE) Downgraded by Zacks Investment Research

Expedia (NASDAQ:EXPE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.

According to Zacks, “Expedia’s fourth-quarter 2017 results were disappointing. Earnings declined on a year-over-year basis despite top-line growth. Higher selling and marketing expenses hurt bottom-line in the quarter. Expedia expects cost of revenues to grow slightly faster than revenues in 2018. Management also expects technology and content expense to grow significantly faster than revenues, primarily due to an increase in cloud spending and the impact of key investments. We believe that increased investments, intensifying competition across geographic regions and discounts offered by larger chain hotels can make margin expansion difficult in the long haul. In past 12 months, the stock has underperformed the industry it belongs to.”

A number of other analysts have also weighed in on the company. Morgan Stanley raised Expedia from an “equal weight” rating to an “overweight” rating in a research note on Wednesday, January 10th. Citigroup reissued a “buy” rating and set a $170.00 price objective (down previously from $180.00) on shares of Expedia in a research note on Friday, October 27th. SunTrust Banks increased their price objective on Expedia to $180.00 and gave the company a “buy” rating in a research note on Friday, January 12th. They noted that the move was a valuation call. Deutsche Bank reissued a “buy” rating and set a $171.00 price objective (down previously from $175.00) on shares of Expedia in a research note on Tuesday, October 24th. Finally, BidaskClub raised Expedia from a “strong sell” rating to a “sell” rating in a research note on Friday, January 5th. One analyst has rated the stock with a sell rating, nine have issued a hold rating and twenty-two have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $150.15.

Expedia (NASDAQ:EXPE) traded down $1.06 during trading hours on Tuesday, hitting $101.76. The stock had a trading volume of 2,857,719 shares, compared to its average volume of 2,754,301. The stock has a market capitalization of $15,510.00, a price-to-earnings ratio of 42.76, a PEG ratio of 1.41 and a beta of 0.89. Expedia has a 52-week low of $98.52 and a 52-week high of $161.00. The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.72 and a current ratio of 0.70.

Expedia (NASDAQ:EXPE) last released its quarterly earnings data on Thursday, February 8th. The online travel company reported $0.84 earnings per share for the quarter, missing analysts’ consensus estimates of $1.15 by ($0.31). The company had revenue of $2.32 billion for the quarter, compared to analysts’ expectations of $2.35 billion. Expedia had a net margin of 3.76% and a return on equity of 9.66%. The business’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period last year, the company posted $1.17 EPS. equities research analysts forecast that Expedia will post 4.43 EPS for the current fiscal year.

In other Expedia news, insider Lance A. Soliday sold 2,401 shares of the firm’s stock in a transaction on Thursday, December 21st. The stock was sold at an average price of $120.37, for a total transaction of $289,008.37. Following the completion of the transaction, the insider now owns 5,744 shares of the company’s stock, valued at $691,405.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Dara Khosrowshahi sold 150,000 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $125.00, for a total value of $18,750,000.00. Following the transaction, the director now directly owns 522,348 shares of the company’s stock, valued at approximately $65,293,500. The disclosure for this sale can be found here. Company insiders own 20.88% of the company’s stock.

Several large investors have recently modified their holdings of EXPE. Macquarie Group Ltd. increased its holdings in shares of Expedia by 377.8% during the second quarter. Macquarie Group Ltd. now owns 48,253 shares of the online travel company’s stock valued at $7,188,000 after acquiring an additional 38,153 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Expedia by 11.3% during the second quarter. The Manufacturers Life Insurance Company now owns 141,016 shares of the online travel company’s stock valued at $21,004,000 after acquiring an additional 14,368 shares in the last quarter. Raymond James Financial Services Advisors Inc. increased its holdings in shares of Expedia by 36.0% during the second quarter. Raymond James Financial Services Advisors Inc. now owns 5,871 shares of the online travel company’s stock valued at $875,000 after acquiring an additional 1,553 shares in the last quarter. Castleark Management LLC bought a new position in shares of Expedia during the second quarter valued at $255,000. Finally, Sentry Investment Management LLC increased its holdings in shares of Expedia by 1.1% during the second quarter. Sentry Investment Management LLC now owns 7,502 shares of the online travel company’s stock valued at $1,117,000 after acquiring an additional 82 shares in the last quarter. Hedge funds and other institutional investors own 82.50% of the company’s stock.

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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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