Travelport Worldwide Limited (TVPT): Is It Now Or Never?

Minetola Matthew sold 2,508 shares in Travelport Worldwide Limited (NYSE:TVPT) for $33,402 in transaction occurred on 2018/10/16. After making this transaction, the insider owns a direct stake of 38,874 shares, worth $525,079, as per the last closing price. On 2018/07/09 Minetola Matthew, dumped 20,000 shares at an average price of $20.02 per share. The selling total is valued at $525,079.

Separately, it had been reported that some other TVPT insiders also took part of the insider trading activity. Minetola Matthew had divested 6,684 shares for $33,402 through a trade on 2018/04/17. Following this activity, the insider holds 114,631 shares worth $525,079 as of recent close. Wall Street’s most bullish Travelport Worldwide Limited (NYSE:TVPT) analysts are predicting the share price to blow past $20 per share during the next 12 months. The current median share price forecast by them is $18, suggesting that the stock could increase 14.5% in that time frame. The average price target of $16.9 calls for a nearly 7.51% increase in the stock price.

Travelport Worldwide Limited (TVPT) trading activity significantly improved as the volume at ready counter increased to 3,448,827 shares versus 1,584,230 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,516,196 shares. The share price rose 5.15% in recent trade and currently has a stock-market value of $1.98B. The shares finished at $15.72, after trading as low as $14.58 earlier in the session. It hit an intraday high Thursday at $16.77. The stock is now 29.92% above against its bear-market low of $12.1 on February 09, 2018. It has retreated -29.13% since it’s 52-week high of $20.3 reached in July. Now the market price is up 20.18% on the year and up 20.28% YTD.

TVPT’s 50 day simple moving average (SMA 50) price is $15.24 and its 200-day simple moving average (SMA 200) price is $16.89. The company’s stock currently has a total float of 125.02M shares. Its weekly volatility is hovering around 6.61% and felt 4.29% volatility in price over a month. On the upside, the share price will test short term resistance at around $16.8. On a downside, the stock is likely to find some support, which begins at $14.61. The failure to get near-term support could push it to $13.5.

It had seen a change in price target from analysts at Imperial Capital, who reiterated the stock at Outperform on November 02 but moved PT from $25 to $20. Analysts at Imperial Capital, maintained the company shares at Outperform on August 03 but switched target price from $22 to $25. The stock lost favor of BofA/Merrill analysts who expressed their lack of confidence in it using a downgrade from Neutral to Underperform on August 03. BofA/Merrill analysts came out with bearish views on May 15 when the call was made. They think the stock is now Neutral compared to to their prior call for Buy.

When looking at valuations, Travelport Worldwide Limited (TVPT) has a cheap P/E of 17.9x as compared to industry average of 45.4x. Moreover, it trades for 10.56 times the next 12 months of expected earnings. Compared to others, Travelport Worldwide Limited is in a different league with regards to profitability, having net margins of 4.6%. To put some perspective around this, the industry’s average net margin is 13.34%. TVPT’s ROE is -87.5%, which is also considerably worse than the industry’s ROE of 12%. It’s also not liquid in the near term, with a current ratio of 0.8. The stock has a debt/capital of 0.

Shares of Travelport Worldwide Limited (TVPT) have dropped -0.1% since the company’s last earnings report. Over the past 11 fiscal quarters, Travelport Worldwide Limited (NYSE:TVPT) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 1 quarters (8%), whereas at 2 occasion EPS met analyst expectations. TVPT last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.31 per share, -96.57% change on the same period last year. That was better than consensus for $0.28. Revenue for the recent quarter stood at $622.59 million, up 2% on last year and below the $633.53 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $574.46 million to $587 million, which should be compared with $591.15 million generated last year. EPS is seen in a range of $0.2 to $0.28, against the $0.3 reported a year ago.