The stock price of Despegar.com Corp (NYSE: DESP) has plunged by -3.29 when compared to previous closing price of 13.39, but the company has seen a 6.23% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-15 that Does Despegar.com (DESP) have what it takes to be a top stock pick for momentum investors? Let’s find out.
Is It Worth Investing in Despegar.com Corp (NYSE: DESP) Right Now?
Despegar.com Corp (NYSE: DESP) has a price-to-earnings ratio that is above its average at 43166.67x. The stock has a 36-month beta value of 2.02. Opinions on the stock are mixed, with 2 analysts rating it as a “buy,” 1 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for DESP is 55.25M, and at present, short sellers hold a 2.01% of that float. On May 08, 2024, the average trading volume of DESP was 745.00K shares.
DESP’s Market Performance
DESP’s stock has seen a 6.23% increase for the week, with a 7.47% rise in the past month and a 46.16% gain in the past quarter. The volatility ratio for the week is 5.43%, and the volatility levels for the past 30 days are at 4.52% for Despegar.com Corp The simple moving average for the past 20 days is 5.56% for DESP’s stock, with a 46.43% simple moving average for the past 200 days.
Analysts’ Opinion of DESP
Many brokerage firms have already submitted their reports for DESP stocks, with Citigroup repeating the rating for DESP by listing it as a “Neutral.” The predicted price for DESP in the upcoming period, according to Citigroup is $14.50 based on the research report published on April 29, 2024 of the current year 2024.
Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see DESP reach a price target of $11. The rating they have provided for DESP stocks is “Overweight” according to the report published on March 07th, 2024.
Morgan Stanley gave a rating of “Overweight” to DESP, setting the target price at $13 in the report published on August 11th of the previous year.
DESP Trading at 15.18% from the 50-Day Moving Average
After a stumble in the market that brought DESP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.86% of loss for the given period.
Volatility was left at 4.52%, however, over the last 30 days, the volatility rate increased by 5.43%, as shares surge +4.77% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +48.85% upper at present.
During the last 5 trading sessions, DESP rose by +6.23%, which changed the moving average for the period of 200-days by +85.26% in comparison to the 20-day moving average, which settled at $12.30. In addition, Despegar.com Corp saw 36.89% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for DESP
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.68 for the gross margin
The net margin for Despegar.com Corp stands at 0.04. The total capital return value is set at 0.3.
Based on Despegar.com Corp (DESP), the company’s capital structure generated 0.8 points at debt to capital in total, while cash flow to debt ratio is standing at 2.76. The debt to equity ratio resting at 4.11. The interest coverage ratio of the stock is 1.88.
Currently, EBITDA for the company is 120.08 million with net debt to EBITDA at -1.13. When we switch over and look at the enterprise to sales, we see a ratio of 0.94. The receivables turnover for the company is 2.73for trailing twelve months and the total asset turnover is 0.79. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.80.
Conclusion
To sum up, Despegar.com Corp (DESP) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
