Trip.com Group (NASDAQ:TCOM) Shares Gap Down on Disappointing Earnings

Shares of Trip.com Group Limited (NASDAQ:TCOM) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $64.66, but opened at $59.04. Trip.com Group shares last traded at $56.43, with a volume of 4,095,461 shares trading hands.

The company reported $0.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.01). The firm had revenue of $1.75 billion during the quarter, compared to analysts’ expectations of $12.32 billion. Trip.com Group had a net margin of 31.86% and a return on equity of 12.04%.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. StockNews.com raised shares of Trip.com Group from a “hold” rating to a “buy” rating in a research report on Wednesday, November 20th. HSBC raised Trip.com Group from a “hold” rating to a “buy” rating and set a $75.00 price objective for the company in a research report on Tuesday, November 19th. Mizuho increased their price target on Trip.com Group from $65.00 to $78.00 and gave the company an “outperform” rating in a research note on Tuesday, November 12th. Citigroup upped their price objective on shares of Trip.com Group from $73.00 to $78.00 and gave the company a “buy” rating in a report on Friday, January 3rd. Finally, Macquarie raised their price target on shares of Trip.com Group from $75.40 to $80.80 and gave the stock an “outperform” rating in a report on Wednesday, November 20th. Ten equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $77.31.

Institutional Investors Weigh In On Trip.com Group

Several large investors have recently bought and sold shares of the company. GF Fund Management CO. LTD. acquired a new stake in Trip.com Group during the 4th quarter worth $26,374,000. Public Employees Retirement System of Ohio acquired a new stake in Trip.com Group in the 4th quarter valued at about $21,984,000. Vise Technologies Inc. purchased a new position in Trip.com Group in the 4th quarter worth approximately $906,000. Voloridge Investment Management LLC grew its position in shares of Trip.com Group by 93.7% in the fourth quarter. Voloridge Investment Management LLC now owns 1,244,863 shares of the company’s stock valued at $85,472,000 after purchasing an additional 602,151 shares in the last quarter. Finally, Tremblant Capital Group lifted its position in Trip.com Group by 220.3% during the fourth quarter. Tremblant Capital Group now owns 297,695 shares of the company’s stock worth $20,440,000 after buying an additional 204,744 shares in the last quarter. 35.41% of the stock is currently owned by hedge funds and other institutional investors.

Trip.com Group Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 1.42 and a quick ratio of 1.42. The stock has a 50 day simple moving average of $68.62 and a two-hundred day simple moving average of $61.55. The company has a market cap of $36.45 billion, a price-to-earnings ratio of 16.91, a price-to-earnings-growth ratio of 0.67 and a beta of 0.37.

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services.