Despegar.com (NYSE:DESP) Downgraded by Zacks Investment Research

Despegar.com (NYSE:DESP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday, Zacks.com reports.

According to Zacks, “Despegar.com, Corp. provides online travel booking services. The Company’s business segment consists of Air, as well as Packages, Hotels and Other Travel Products. It offers online hotels, car, flights, vacation rentals, packages, and ticket booking services. The company’s destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. Despegar.com, Corp. is based in Buenos Aires, Argentina. “

Other equities research analysts have also issued research reports about the company. ValuEngine raised Despegar.com from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. Morgan Stanley lowered their target price on Despegar.com from $15.00 to $14.00 and set an “equal weight” rating for the company in a research note on Tuesday, October 15th. Finally, UBS Group set a $19.00 target price on Despegar.com and gave the company a “buy” rating in a research note on Friday, August 9th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $16.50.

DESP stock traded down $0.04 during mid-day trading on Monday, hitting $10.09. 254,500 shares of the stock were exchanged, compared to its average volume of 423,371. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.56 and a quick ratio of 1.56. The business has a fifty day moving average price of $10.88 and a 200 day moving average price of $12.68. Despegar.com has a 12 month low of $9.52 and a 12 month high of $18.90. The stock has a market capitalization of $713.75 million, a price-to-earnings ratio of 37.37 and a beta of 1.41.

Despegar.com (NYSE:DESP) last released its earnings results on Thursday, August 8th. The company reported ($0.23) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.23). Despegar.com had a negative return on equity of 5.27% and a negative net margin of 2.60%. The company had revenue of $114.09 million during the quarter, compared to analyst estimates of $114.90 million. During the same quarter in the previous year, the company posted $0.02 EPS. Despegar.com’s revenue for the quarter was down 11.0% on a year-over-year basis. As a group, equities analysts forecast that Despegar.com will post -0.19 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DESP. Tower Research Capital LLC TRC raised its position in Despegar.com by 119.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,182 shares of the company’s stock valued at $44,000 after purchasing an additional 1,733 shares during the last quarter. Marshall Wace North America L.P. bought a new position in Despegar.com during the 1st quarter valued at approximately $112,000. CHICAGO TRUST Co NA bought a new position in Despegar.com during the 2nd quarter valued at approximately $160,000. Natixis bought a new position in Despegar.com during the 2nd quarter valued at approximately $173,000. Finally, RBF Capital LLC bought a new position in Despegar.com during the 2nd quarter valued at approximately $208,000. 57.68% of the stock is owned by institutional investors.

Despegar.com Company Profile

Despegar.com Corp. provides online travel agency services. It offers tours and corporate packages to destinations such as Paris, Cancun, Rio de Janeiro, Rome, Barcelona, and Las Vegas, as well as vehicle rentals and hotel bookings. The company was founded by Roberto Hernán Souviron, Federico Fuchs, Martín Rastellino, Ernesto Cadeiras and Christian Vilate in December 1999 and is headquartered in Buenos Aires, Argentina.

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