Zacks Investment Research Downgrades Despegar.com (DESP) to Sell

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Zacks Investment Research lowered shares of Despegar.com (NYSE:DESP) from a hold rating to a sell rating in a report issued on Monday morning.

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. “

Separately, KeyCorp began coverage on shares of Despegar.com in a report on Tuesday, December 18th. They issued a sector weight rating on the stock. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company. The company presently has an average rating of Hold and an average price target of $28.00.

NYSE DESP traded down $0.18 on Monday, hitting $16.30. The stock had a trading volume of 419 shares, compared to its average volume of 339,263. Despegar.com has a 52-week low of $11.11 and a 52-week high of $36.56. The firm has a market capitalization of $1.13 billion, a P/E ratio of 23.74 and a beta of 0.91.

Despegar.com (NYSE:DESP) last released its quarterly earnings results on Thursday, November 8th. The company reported ($0.02) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.13 by ($0.15). Despegar.com had a return on equity of 11.28% and a net margin of 5.25%. The firm had revenue of $121.25 million during the quarter, compared to analysts’ expectations of $123.77 million. During the same period in the prior year, the firm posted $0.21 earnings per share. Despegar.com’s revenue for the quarter was down 8.7% compared to the same quarter last year. On average, analysts forecast that Despegar.com will post 0.3 EPS for the current year.

Several institutional investors and hedge funds have recently made changes to their positions in DESP. BlackRock Inc. grew its holdings in shares of Despegar.com by 5,142.9% during the second quarter. BlackRock Inc. now owns 171,704 shares of the company’s stock valued at $3,600,000 after buying an additional 168,429 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Despegar.com during the second quarter valued at $173,000. Schroder Investment Management Group purchased a new stake in shares of Despegar.com during the second quarter valued at $11,876,000. Northern Trust Corp grew its holdings in shares of Despegar.com by 418.3% during the second quarter. Northern Trust Corp now owns 74,466 shares of the company’s stock valued at $1,562,000 after buying an additional 60,100 shares during the last quarter. Finally, Manning & Napier Group LLC grew its holdings in shares of Despegar.com by 14.2% during the third quarter. Manning & Napier Group LLC now owns 462,670 shares of the company’s stock valued at $7,804,000 after buying an additional 57,499 shares during the last quarter. 66.74% of the stock is currently owned by hedge funds and other institutional investors.

Despegar.com Company Profile

Despegar.com, Corp., an online travel company, provides a range of travel and travel-related products through its Websites and mobile applications in Latin America. It operates through two segments, Air; and Packages, Hotels and Other Travel Products. The company offers airline tickets, packages, hotels, and other travel-related products under the Despegar and Decolar brands, which enable consumers to find, compare, plan, and purchase travel products through its marketplace.

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