Analysts Navigate Expedia Stock Following Q1 Report

Analysts chimed in with mixed sentiment on EXPE

Assistant Editor
May 21, 2020 at 11:00 AM
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The shares of Expedia Group Inc (NASDAQ:EXPE) are down 1.5% at $78.40 at last check, after the company reported wider-than-expected first quarter losses for share. However, the company also announced a revenue beat, and forecast a rebound for May as cancellations stabilize. Following the news, analysts chimed in with somewhat mixed sentiment. No fewer than eight analysts lifted their price targets, including Deutsche Bank to $112 from $87, while two cut theirs, including Evercore ISI to $85 from $130, with an added downgrade to "in line" from "outperform." 

Coming into today, 12 out of 19 analysts were calling EXPE a tepid "hold" rating, while the remaining seven said "strong buy." Meanwhile, the 12-month consensus price target of $95.74 sits at a 24.6% premium to current levels. 

With Tuesday's bull gap, which toppled its 60-day moving average, in the rear view, EXPE is now contending with pressure around the $80 region, which is home to its early-March, pre-bear gap lows. It has been a slow climb higher for the travel stock, which has managed to tack on 34.8% in the last one-month period, though it's still languishing beneath its year-to-date breakeven with a 28% deficit. 

In the options pits, puts have picked up in popularity. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.04 puts have been bought for every call in the past 10 days. This ratio sits in the 82nd percentile of its annual range, suggesting the appetite for bearish bets is higher than usual. 

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