Despegar.com (DESP) Trading Down 5% After Earnings Miss

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Despegar.com Corp (NYSE:DESP) fell 5% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $17.78 and last traded at $16.63. 100,032 shares were traded during mid-day trading, a decline of 70% from the average session volume of 330,395 shares. The stock had previously closed at $17.50.

The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.04 by ($0.02). The company had revenue of $128.30 million for the quarter, compared to analysts’ expectations of $133.55 million. During the same period last year, the business earned $0.06 earnings per share. The business’s revenue was up 4.0% compared to the same quarter last year.

Several brokerages recently commented on DESP. KeyCorp dropped their price target on shares of Despegar.com from $30.00 to $27.00 and set a “buy” rating for the company in a research report on Friday. Zacks Investment Research upgraded shares of Despegar.com from a “sell” rating to a “hold” rating in a research note on Monday, June 11th. Morgan Stanley decreased their price objective on shares of Despegar.com from $31.00 to $24.00 and set an “equal weight” rating for the company in a research note on Friday, July 20th. Cowen reiterated a “buy” rating and set a $20.00 price objective on shares of Despegar.com in a research note on Friday. Finally, Citigroup decreased their price objective on shares of Despegar.com from $28.00 to $25.00 and set a “neutral” rating for the company in a research note on Friday. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $30.25.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DESP. BlackRock Inc. purchased a new stake in Despegar.com during the fourth quarter worth approximately $142,000. Bank of America Corp DE purchased a new stake in Despegar.com during the second quarter worth approximately $173,000. State of New Jersey Common Pension Fund D purchased a new stake in Despegar.com during the first quarter worth approximately $209,000. Jane Street Group LLC purchased a new stake in Despegar.com during the first quarter worth approximately $227,000. Finally, GSA Capital Partners LLP purchased a new stake in Despegar.com during the first quarter worth approximately $243,000. Institutional investors own 74.66% of the company’s stock.

The company has a market capitalization of $1.30 billion and a PE ratio of 24.68.

About Despegar.com (NYSE:DESP)

Despegar.com, Corp., an online travel company, provides a range of travel and travel-related products through its Websites and mobile applications in Latin America. It operates through two segments, Air; and Packages, Hotels and Other Travel Products. The company offers airline tickets, packages, hotels, and other travel-related products under the Despegar and Decolar brands, which enable consumers to find, compare, plan, and purchase travel products through its marketplace.

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