Expedia Group Target Cut by Argus Amid Mixed Analyst Ratings and Q3 Beat
Argus reduced its price target on Expedia Group to $300 while keeping a Buy rating, following strong third-quarter earnings and mixed Wall Street sentiment.
Argus lowered its price target on Expedia Group, Inc. from $360.00 to $300.00 on Wednesday, November 11, while maintaining a Buy rating on the stock. According to a report by Benzinga, the revised target suggests an upside potential of 18.98% compared to the travel company's previous closing price.
The adjustment comes amid widespread updates from equity analysts following Expedia's recent quarterly performance. Barclays initiated coverage on the company with an Equal Weight rating and a $310.00 price target. Jefferies Financial Group dropped its target from $350.00 to $325.00 but kept a Buy rating. Other recent target revisions include UBS Group cutting its objective from $351.00 to $328.00 and Wedbush lowering its target from $417.00 to $384.00 while reiterating an Outperform rating. Wall Street Zen downgraded the stock from Buy to Hold, citing concerns over softer fourth-quarter demand and geopolitical uncertainty.
Expedia reported third-quarter results on Wednesday, November 4, beating consensus expectations. The company earned $9.39 per share, exceeding the expected $8.85 per share and rising from $7.57 per share in the prior-year period. Revenue increased 11.9% year over year to $4.94 billion, surpassing Wall Street forecasts of $4.73 billion. For the full year, sell-side analysts project Expedia will generate $17.37 earnings per share.
Alongside its earnings results, Expedia announced a quarterly dividend of $0.48 per share. The dividend will be paid on Thursday, December 10, to stockholders of record as of Wednesday, November 18. This amounts to an annualized payout of $1.92 per share, representing a dividend yield of 0.7% and a payout ratio of 11.21%.
Overall Wall Street sentiment remains cautious, with MarketBeat reporting a consensus rating of Hold. Institutional and hedge fund ownership stands at 90.76%, while corporate insiders hold 5.20% of outstanding shares. Expedia shares opened at $252.15 on Wednesday, November 11, within a 52-week range of $185.34 to $342.00.