Despegar.com, Corp. (NYSE:DESP) is among the top stocks that may remain in focus today as the company shares are trading 4.89% or 0.58 points lower from last closing price of $11.87, reaching $11.29 at last check. Any clue why there is so much of action in the DESP stock? The share price is losing for the fifth day in a row and has dropped in 3 of the last 5 days and is down -19.31% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -1,335,536 shares, and in total 108264 shares valued at $1.222 million were seen changing hands compared with 1.444 million shares valued at $17.138 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the DESP stock is near its bottom.
Despegar.com, Corp. (DESP) shares have notched a 3-month decline of about -19.31%, but has still tumbled -4.35% year to date. By comparison, the stock sank -28.45% over the past 12 months, while it jumped 4.12% over the 1 month. The company’s market cap is around $823.3M, with its short interest ratio standing at 2.91%.
In the current trading session for DESP, the stock witnessed two major price actions, it rose to a high of $11.85 and was down as much as $11.26 at one point. The high recorded is very low when compared to their 52-week high which is $9.52. The 52-week high is now at -40 distance from current price. Their recent low of $18.9 represents a 19.12% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for DESP is $15.4, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Despegar.com, Corp. earned $-0.19 per share in the trailing 12 months and has a P/E ratio of -59.42. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 25.6 and lower compared to the sector’s average of 35.32. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. DESP also has P/S multiple of 1.56. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.71x.
DESP‘s last price was down -15.74% as compared to the average trading price of 50 days recorded at $13.4 while enlarging the period to 200 trading days, the average closing price was $10.91. At present, there are 69.36 million in the total number of common shares owned by the public and among those 58.89 million shares have been available to trade. The percentage of shares being held by the company management was 15.09% while institutions stake was 66.3%. The company has generated negative returns on equity over the last 12 months (-5.3%). It managed to keep its gross profit margin at 65.7% over the past 12 months.
When assessing the full upside of the DESP stock, there is another set of technicals that should be looked into and considered. Its 3.03% gain from moving average of $10.96 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Despegar.com, Corp. — 1 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $16.5 on shares of Despegar.com, Corp. (NYSE:DESP), which corresponds to 45.37% upside potential than its current market price of $11.29 and implies potential despite the recent drop in the price. However, their current target price has fallen from $17 a month ago and is down handily from the consensus target of $21.2 a quarter ago.
Let’s briefly check the hedge fund interest towards DESP stock. Great Lakes Advisors LLC added position in the company after it grew 16.9% or 267,589 shares of its common stock. The hedge fund now owns 312,811 shares worth $3,531,636, SEC documents show. Coronation Fund Managers Ltd. shored up assets in the stock as 17021.02 shares have been purchased, increasing its stake by 33.2% to 22,672 shares which are currently valued at $255,967. In addition, Cohen Capital Management Inc. recently reported that it now owns 178,933 shares making a total of $2,020,154 based on the recent price. This refelects a change of 24.9% in their ownership.