Despegar.com Corp (NYSE: DESP)’s stock price has dropped by -3.29 in relation to previous closing price of 19.14. Nevertheless, the company has seen a loss of -3.74% in its stock price over the last five trading days. seekingalpha.com reported 2025-03-27 that Despegar.com posted a 35% increase in gross bookings and a 94% rise in adjusted EBITDA, with the B2B segment now representing 19% of total operations. The acquisition agreement with Prosus could strengthen Despegar’s financial and technological position, pending shareholder and regulatory approval. Potential investigation impacts could adjust the acquisition price. Ongoing investigations into alleged fare fraud in Brazil pose reputational and legal risks. The outcome could impact the company’s relationships and long-term valuation.
Is It Worth Investing in Despegar.com Corp (NYSE: DESP) Right Now?
Despegar.com Corp (NYSE: DESP) has a higher price-to-earnings ratio of 92550.00x compared to its average ratio. DESP has 36-month beta value of 1.63. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 0 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for DESP is 64.43M, and currently, short sellers hold a 7.31% ratio of that float. The average trading volume of DESP on March 31, 2025 was 2.25M shares.
DESP’s Market Performance
DESP’s stock has seen a -3.74% decrease for the week, with a -3.64% drop in the past month and a -4.83% fall in the past quarter. The volatility ratio for the week is 1.25%, and the volatility levels for the past 30 days are at 0.52% for Despegar.com Corp. The simple moving average for the past 20 days is -3.50% for DESP’s stock, with a 19.99% simple moving average for the past 200 days.
Analysts’ Opinion of DESP
TD Cowen, on the other hand, stated in their research note that they expect to see DESP reach a price target of $14, previously predicting the price at $12. The rating they have provided for DESP stocks is “Sell” according to the report published on November 25th, 2024.
Citigroup gave a rating of “Neutral” to DESP, setting the target price at $14.50 in the report published on April 29th of the previous year.
DESP Trading at -3.65% 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 -5.32% of loss for the given period.
Volatility was left at 0.52%, however, over the last 30 days, the volatility rate increased by 1.25%, as shares sank -3.69% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.24% lower at present.
During the last 5 trading sessions, DESP fell by -3.74%, which changed the moving average for the period of 200-days by +27.22% in comparison to the 20-day moving average, which settled at $19.18. In addition, Despegar.com Corp saw -3.84% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for DESP
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.72 for the gross margin
The net margin for Despegar.com Corp stands at 0.04. The total capital return value is set at 0.53.
Based on Despegar.com Corp (DESP), the company’s capital structure generated -2.03 points at debt to capital in total, while cash flow to debt ratio is standing at 1.3.
Currently, EBITDA for the company is 81.34 million with net debt to EBITDA at -0.91. When we switch over and look at the enterprise to sales, we see a ratio of 1.88. The receivables turnover for the company is 2.66for trailing twelve months and the total asset turnover is 0.86. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.83.
Conclusion
To put it simply, Despegar.com Corp (DESP) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating 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.
