Analysts Target Expedia Stock After Earnings

Still, the company's shares are falling today

Deputy Editor
May 3, 2022 at 9:49 AM
facebook twitter linkedin

The shares of Expedia Group Inc (NASDAQ:EXPE) are falling ahead of the open, down 9.9% to trade at $157.42, despite the travel company's first-quarter losses of 47 cents and revenue of $2.25 billion beating Wall Street's expectations. Expedia's upbeat financial results were boosted by strong travel demand, even as Covid-19 cases and the war in Ukraine raised concerns.

In response, no fewer than eight analysts cut their price targets, while four raised their price objective on EXPE. Concerning a few of the bigger moves, Benchmark moved up to $275 from $265, while RBC Capital lowered its price target to $185 from $200, noting that Expedia's margin is already baked into its shares. Meanwhile, the 12-month consensus target price of $214.46 is a 22.7% premium to last night's close.

Short interest has been on the rise, up 27.9% in the last two reporting periods, and represents 5.6% of the stock's available float. In other words, it would take nearly three days to buy back these bearish bets, at EXPE's average pace of trading. 

Meanwhile, EXPE's Schaeffer's put/call open interest ratio (SOIR) stands higher than 81% of readings from the past year. This suggests short-term options traders have rarely been more put-biased.

Expedia stock is set to close back below the 320-day moving average for the first time since early March. The stock is now down 11.8% in 2022, and has shed 9.4% in the last 12-months.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners