StockNews.com Lowers Travelzoo (NASDAQ:TZOO) to Buy

Travelzoo (NASDAQ:TZOO) was downgraded by equities researchers at StockNews.com from a “strong-buy” rating to a “buy” rating in a research note issued on Wednesday.

Several other research firms also recently weighed in on TZOO. Litchfield Hills Research assumed coverage on shares of Travelzoo in a research report on Wednesday, September 4th. They issued a “buy” rating and a $35.00 price target on the stock. Ascendiant Capital Markets lifted their target price on shares of Travelzoo from $17.00 to $18.00 and gave the company a “buy” rating in a research note on Monday, August 19th. Finally, Barrington Research upped their price objective on Travelzoo from $12.00 to $15.00 and gave the stock an “outperform” rating in a research note on Tuesday.

Travelzoo Stock Performance

Shares of Travelzoo stock traded up $1.67 on Wednesday, hitting $14.60. The company had a trading volume of 529,526 shares, compared to its average volume of 104,940. Travelzoo has a 1 year low of $5.92 and a 1 year high of $15.71. The stock has a 50 day moving average of $12.55 and a 200-day moving average of $9.97. The stock has a market capitalization of $191.23 million, a price-to-earnings ratio of 16.04 and a beta of 1.74.

Travelzoo (NASDAQ:TZOO) last issued its earnings results on Thursday, July 25th. The information services provider reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.04. Travelzoo had a return on equity of 170.06% and a net margin of 15.59%. The company had revenue of $21.14 million during the quarter, compared to analysts’ expectations of $21.58 million. During the same period in the prior year, the business posted $0.17 EPS. Equities analysts anticipate that Travelzoo will post 0.97 earnings per share for the current year.

Travelzoo declared that its board has approved a share repurchase program on Wednesday, October 23rd that permits the company to buyback 1,000,000 shares. This buyback authorization permits the information services provider to purchase shares of its stock through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insider Activity at Travelzoo

In related news, major shareholder Azzurro Capital Inc sold 22,500 shares of the business’s stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $10.16, for a total transaction of $228,600.00. Following the completion of the transaction, the insider now owns 5,037,371 shares in the company, valued at $51,179,689.36. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other news, major shareholder Azzurro Capital Inc sold 22,500 shares of the company’s stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $10.16, for a total transaction of $228,600.00. Following the transaction, the insider now directly owns 5,037,371 shares of the company’s stock, valued at approximately $51,179,689.36. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Holger Bartel sold 13,466 shares of the business’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $10.19, for a total transaction of $137,218.54. Following the sale, the chief executive officer now directly owns 302,534 shares in the company, valued at $3,082,821.46. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 379,254 shares of company stock worth $4,459,596. Insiders own 57.45% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Hennion & Walsh Asset Management Inc. purchased a new stake in shares of Travelzoo in the 1st quarter valued at $277,000. Acadian Asset Management LLC grew its position in Travelzoo by 9.7% during the first quarter. Acadian Asset Management LLC now owns 535,786 shares of the information services provider’s stock valued at $5,451,000 after acquiring an additional 47,352 shares during the period. O Shaughnessy Asset Management LLC purchased a new position in Travelzoo in the first quarter valued at about $132,000. Ritholtz Wealth Management lifted its holdings in Travelzoo by 217.4% in the 3rd quarter. Ritholtz Wealth Management now owns 34,453 shares of the information services provider’s stock worth $415,000 after buying an additional 23,599 shares in the last quarter. Finally, American Century Companies Inc. bought a new stake in Travelzoo in the second quarter valued at about $82,000. 27.39% of the stock is owned by institutional investors and hedge funds.

About Travelzoo

Travelzoo, together with its subsidiaries, operates as an Internet media company that provides travel, entertainment, and local experiences worldwide. It operates in four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives. The company offers Travelzoo website, Travelzoo Top 20 email newsletters, Standalone email newsletters, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters.