Zacks Investment Research Lowers Expedia (NASDAQ:EXPE) to Hold

Expedia (NASDAQ:EXPE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday, February 2nd.

According to Zacks, “Expedia’s Merchant, Agency, Advertising & Media and Home Away businesses are doing well. It is one of the leading online travel companies in the world. However, we think that the increased investments in the business, increasing competition across geographic regions and discounts offered by larger chain hotels can make margin expansion difficult. The company’s third-quarter 2017 results were adversely impacted by hurricanes that hit in the late August and continued through mid-September. In past 12 months, the stock has underperformed the industry it belongs to.”

A number of other research firms also recently weighed in on EXPE. Deutsche Bank reissued a “buy” rating and issued a $171.00 target price (down previously from $175.00) on shares of Expedia in a report on Tuesday, October 24th. SunTrust Banks reissued a “buy” rating and issued a $190.00 target price on shares of Expedia in a report on Monday, October 23rd. KeyCorp reaffirmed a “buy” rating and issued a $178.00 price objective on shares of Expedia in a research note on Tuesday, October 17th. Credit Suisse Group set a $147.00 price objective on Expedia and gave the stock a “hold” rating in a research note on Friday, October 27th. Finally, Barclays decreased their price objective on Expedia from $170.00 to $155.00 and set an “overweight” rating on the stock in a research note on Friday, October 27th. Ten analysts have rated the stock with a hold rating and twenty-two have assigned a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $150.62.

Shares of Expedia (NASDAQ:EXPE) traded down $19.03 during trading hours on Friday, hitting $104.00. The stock had a trading volume of 16,671,887 shares, compared to its average volume of 2,156,301. Expedia has a 1 year low of $98.52 and a 1 year high of $161.00. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.72 and a current ratio of 0.72. The company has a market capitalization of $15,834.21, a P/E ratio of 43.88, a P/E/G ratio of 1.41 and a beta of 0.89.

Expedia (NASDAQ:EXPE) last posted its earnings results 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). Expedia had a net margin of 3.76% and a return on equity of 9.75%. The firm had revenue of $2.32 billion during the quarter, compared to the consensus estimate of $2.35 billion. During the same period in the prior year, the company posted $1.17 EPS. The firm’s revenue was up 10.8% compared to the same quarter last year. sell-side analysts expect that Expedia will post 4.43 EPS for the current year.

In other Expedia news, insider Lance A. Soliday sold 2,401 shares of the firm’s stock in a transaction that occurred 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 in the company, valued at approximately $691,405.28. The transaction was disclosed in a document filed 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 that occurred 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 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 20.95% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in EXPE. American Century Companies Inc. boosted its holdings in shares of Expedia by 22.0% in the 3rd quarter. American Century Companies Inc. now owns 2,031,943 shares of the online travel company’s stock worth $292,478,000 after purchasing an additional 365,857 shares during the period. First Trust Advisors LP boosted its holdings in shares of Expedia by 28.8% in the 4th quarter. First Trust Advisors LP now owns 1,371,635 shares of the online travel company’s stock worth $164,281,000 after purchasing an additional 306,536 shares during the period. Pictet Asset Management Ltd. boosted its holdings in shares of Expedia by 79.0% in the 3rd quarter. Pictet Asset Management Ltd. now owns 632,779 shares of the online travel company’s stock worth $91,082,000 after purchasing an additional 279,312 shares during the period. Steadfast Capital Management LP boosted its holdings in shares of Expedia by 15.6% in the 2nd quarter. Steadfast Capital Management LP now owns 2,041,580 shares of the online travel company’s stock worth $304,093,000 after purchasing an additional 274,760 shares during the period. Finally, Artisan Partners Limited Partnership boosted its holdings in shares of Expedia by 18.2% in the 3rd quarter. Artisan Partners Limited Partnership now owns 1,698,375 shares of the online travel company’s stock worth $244,464,000 after purchasing an additional 260,929 shares during the period. Institutional investors and hedge funds own 83.05% of the company’s stock.

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About Expedia

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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