Zacks Investment Research Downgrades Expedia Group (EXPE) to Hold

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

According to Zacks, “Expedia reported solid second quarter results wherein both earnings and revenues have exhibited year over year growth owing to its increasing gross bookings. The company’s well performing HomeAway and improving stayed room nights numbers are major positives. Additionally, the company’s strong initiatives toward strengthening footprints in the domestic regions helped in aiding growth to the domestic stayed room nights during the quarter. We believe the company’s strength in Core OTA, Brand Expedia, Hotels.com, Expedia Partner Solutions and Egencia will continue to benefit its market position. The expansion of global lodging portfolio by adding new properties will also continue to aid the lodging revenues of Expedia. However, weakness in Trivago and unfavorable changes in its marketplace are major negatives. Notably, the stock has underperformed the industry it belongs to over a year.”

A number of other equities analysts also recently commented on the company. Deutsche Bank boosted their price objective on Expedia Group from $145.00 to $147.00 and gave the stock a “buy” rating in a research report on Wednesday, August 15th. Citigroup boosted their price objective on Expedia Group from $140.00 to $165.00 and gave the stock a “buy” rating in a research report on Monday, July 30th. Guggenheim reissued a “buy” rating and set a $160.00 price objective on shares of Expedia Group in a research report on Friday, July 27th. Credit Suisse Group boosted their price objective on Expedia Group from $135.00 to $160.00 and gave the stock a “buy” rating in a research report on Friday, July 27th. Finally, Cowen set a $155.00 price objective on Expedia Group and gave the stock a “buy” rating in a research report on Friday, July 27th. Eleven analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $150.06.

Shares of Expedia Group stock traded up $0.29 on Tuesday, reaching $131.85. 49,203 shares of the company were exchanged, compared to its average volume of 1,772,590. Expedia Group has a 1-year low of $98.52 and a 1-year high of $154.24. The company has a market cap of $19.60 billion, a PE ratio of 35.42, a P/E/G ratio of 1.85 and a beta of 1.37. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.74 and a current ratio of 0.74.

Expedia Group (NASDAQ:EXPE) last announced its quarterly earnings data on Thursday, July 26th. The online travel company reported $1.38 EPS for the quarter, topping the Zacks’ consensus estimate of $0.55 by $0.83. Expedia Group had a return on equity of 9.48% and a net margin of 2.54%. The business had revenue of $2.88 billion during the quarter, compared to the consensus estimate of $2.88 billion. During the same period in the previous year, the company posted $0.89 earnings per share. The business’s revenue for the quarter was up 11.4% on a year-over-year basis. sell-side analysts predict that Expedia Group will post 4.42 earnings per share for the current fiscal year.

In other Expedia Group news, insider Lance A. Soliday sold 3,269 shares of the business’s stock in a transaction that occurred on Friday, July 27th. The stock was sold at an average price of $138.07, for a total value of $451,350.83. Following the completion of the sale, the insider now owns 7,143 shares in the company, valued at $986,234.01. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Susan C. Athey sold 1,547 shares of the business’s stock in a transaction that occurred on Tuesday, July 31st. The shares were sold at an average price of $133.99, for a total value of $207,282.53. Following the completion of the sale, the director now owns 1,974 shares of the company’s stock, valued at approximately $264,496.26. The disclosure for this sale can be found here. In the last quarter, insiders sold 8,316 shares of company stock valued at $1,125,813. 20.96% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently modified their holdings of the business. IMA Wealth Inc. purchased a new stake in Expedia Group in the second quarter valued at approximately $105,000. Optimum Investment Advisors purchased a new stake in Expedia Group in the first quarter valued at approximately $131,000. Dupont Capital Management Corp lifted its stake in Expedia Group by 62.8% in the second quarter. Dupont Capital Management Corp now owns 1,410 shares of the online travel company’s stock valued at $169,000 after buying an additional 544 shares during the last quarter. Hilltop Holdings Inc. purchased a new stake in Expedia Group in the second quarter valued at approximately $206,000. Finally, Raymond James Trust N.A. purchased a new stake in Expedia Group in the second quarter valued at approximately $208,000. Institutional investors own 82.65% of the company’s stock.

Expedia Group Company Profile

Expedia Group, Inc, together with its subsidiaries, operates as an online travel company in the United States and internationally. It operates through Core OTA, Trivago, HomeAway, and Egencia segments. The company facilitates the booking of hotel rooms, airline seats, car rentals, and destination services from its travel suppliers; and acts as an agent in the transactions.

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