Tripadvisor CEO Trades $255K In Company Stock

Almir Ambeskovic, CEO at Tripadvisor TRIP, disclosed an insider sell on May 20, according to a recent SEC filing.

What Happened: Ambeskovic opted to sell 16,643 shares of Tripadvisor, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $255,064.

Tracking the Wednesday's morning session, Tripadvisor shares are trading at $14.25, showing a down of 2.46%.

Discovering Tripadvisor: A Closer Look

Tripadvisor is the world's leading travel metasearch company. Its platform offers 1 billion reviews and information on several million accommodations, restaurants, experiences, airlines, and cruises. In 2024, 52% of revenue came from the company's core Brand Tripadvisor segment, which includes hotel revenue generated through advertising on its metasearch platform. Viator, its experiences brand, was 46% of sales in 2024, and TheFork, its dining brand, represented 10% of revenue (about 8% of sales were intersegment, which are eliminated from consolidated revenue).

Understanding the Numbers: Tripadvisor's Finances

Revenue Growth: Tripadvisor's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 0.76%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 93.22%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Tripadvisor's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.08.

Debt Management: With a high debt-to-equity ratio of 1.97, Tripadvisor faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 37.46 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.16 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 8.57, Tripadvisor presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Tripadvisor's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.