Investors Buy Shares of Expedia (EXPE) on Weakness Following Analyst Downgrade

Investors purchased shares of Expedia, Inc. (NASDAQ:EXPE) on weakness during trading hours on Tuesday after Zacks Investment Research downgraded the stock from a hold rating to a sell rating. $80.12 million flowed into the stock on the tick-up and $60.23 million flowed out of the stock on the tick-down, for a money net flow of $19.89 million into the stock. Of all companies tracked, Expedia had the 26th highest net in-flow for the day. Expedia traded down ($1.06) for the day and closed at $101.76

A number of other brokerages have also commented on EXPE. BidaskClub lowered shares of Expedia from a “sell” rating to a “strong sell” rating in a report on Saturday, December 2nd. Argus lowered shares of Expedia from a “buy” rating to a “hold” rating and set a $178.00 price objective on the stock. in a report on Tuesday, December 5th. SunTrust Banks boosted their price objective on shares of Expedia to $180.00 and gave the stock a “buy” rating in a report on Friday, January 12th. They noted that the move was a valuation call. KeyCorp reiterated a “buy” rating and issued a $178.00 price objective on shares of Expedia in a report on Tuesday, October 17th. Finally, Morgan Stanley cut their price objective on shares of Expedia from $160.00 to $150.00 and set an “overweight” rating on the stock in a report on Friday, February 9th. One analyst has rated the stock with a sell rating, nine have given a hold rating and twenty-two have assigned a buy rating to the company’s stock. Expedia has a consensus rating of “Buy” and an average price target of $150.15.

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

Several large investors have recently made changes to their positions in EXPE. Winslow Capital Management LLC grew its position in shares of Expedia by 21.0% during the 4th quarter. Winslow Capital Management LLC now owns 3,092,639 shares of the online travel company’s stock valued at $370,406,000 after buying an additional 535,874 shares during the last quarter. American Century Companies Inc. grew its position in shares of Expedia by 22.0% during the 3rd quarter. American Century Companies Inc. now owns 2,031,943 shares of the online travel company’s stock valued at $292,478,000 after buying an additional 365,857 shares during the last quarter. First Trust Advisors LP grew its position in shares of Expedia by 28.8% during the 4th quarter. First Trust Advisors LP now owns 1,371,635 shares of the online travel company’s stock valued at $164,281,000 after buying an additional 306,536 shares during the last quarter. Pictet Asset Management Ltd. grew its position in shares of Expedia by 79.0% during the 3rd quarter. Pictet Asset Management Ltd. now owns 632,779 shares of the online travel company’s stock valued at $91,082,000 after buying an additional 279,312 shares during the last quarter. Finally, Artisan Partners Limited Partnership grew its position in shares of Expedia by 18.2% during the 3rd quarter. Artisan Partners Limited Partnership now owns 1,698,375 shares of the online travel company’s stock valued at $244,464,000 after buying an additional 260,929 shares during the last quarter. 82.50% of the stock is owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.72 and a current ratio of 0.70. The firm has a market capitalization of $15,520.00, a PE ratio of 42.76, a price-to-earnings-growth ratio of 1.41 and a beta of 0.89.

Expedia (NASDAQ:EXPE) last announced 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). Expedia had a net margin of 3.76% and a return on equity of 9.66%. The business had revenue of $2.32 billion for the quarter, compared to the consensus estimate of $2.35 billion. During the same period in the prior year, the company earned $1.17 EPS. Expedia’s quarterly revenue was up 10.8% on a year-over-year basis. equities analysts predict that Expedia, Inc. will post 4.43 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 28th. Shareholders of record on Thursday, March 8th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.18%. Expedia’s dividend payout ratio (DPR) is 50.42%.

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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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