Despegar.com Corp. [DESP] is -23.49% lower this YTD. Is it still time to buy?

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Despegar.com Corp. [NYSE: DESP] gained 7.61% or 0.53 points to close at $7.49 with a heavy trading volume of 541402 shares. The company report on June 14, 2022 that Despegar Board of Directors Approves New Share Repurchase Program.


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Despegar.com, Corp. (NYSE: DESP) (“Despegar”), the leading online travel company in Latin America, today announced that on June 13, 2022, the Company’s Board of Directors approved a new share repurchase program (the “2022 Share Repurchase Program”) that enables the Company to repurchase up to $40 million of its shares. The 2022 Share Repurchase Program becomes effective on June 14, 2022, and expires on August 12, 2022. Share repurchases may be undertaken through a variety of methods, including pursuant to trading plans adopted in accordance with Rule 10b5‐1 of the Exchange Act, or through open market or privately negotiated transactions, in accordance with applicable law.

The timing and number of shares repurchased pursuant to the 2022 Share Repurchase Program may depend on a variety of factors, including price, general business and market conditions, alternative investment opportunities and other factors. The Company is not obligated to acquire any specific number of shares under the 2022 Share Repurchase Program, and the program may be suspended, terminated or modified at any time for any reason, in accordance with applicable law.

It opened the trading session at $6.94, the shares rose to $7.515 and dropped to $6.94, the range by which the price of stock traded the whole day. The daily chart for DESP points out that the company has recorded -11.57% loss over the past six months. However, it is still -12.46% lower than its most recent low trading price.

If we look at the average trading volume of 283.47K shares, DESP reached to a volume of 541402 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Despegar.com Corp. [DESP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DESP shares is $15.90 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DESP stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Citigroup have made an estimate for Despegar.com Corp. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 25, 2022. The new note on the price target was released on March 16, 2021, representing the official price target for Despegar.com Corp. stock. Previously, the target price had yet another raise from $11 to $13, while Citigroup kept a Neutral rating on DESP stock. On April 21, 2020, analysts decreased their price target for DESP shares from 16 to 7.

The Average True Range (ATR) for Despegar.com Corp. is set at 0.50, with the Price to Sales ratio for DESP stock in the period of the last 12 months amounting to 1.29.

Trading performance analysis for DESP stock

Despegar.com Corp. [DESP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.59. With this latest performance, DESP shares dropped by -15.65% in over the last four-week period, additionally sinking by -11.57% over the last 6 months – not to mention a drop of -44.31% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DESP stock in for the last two-week period is set at 36.16, with the RSI for the last a single of trading hit 37.68, and the three-weeks RSI is set at 36.14 for Despegar.com Corp. [DESP]. The present Moving Average for the last 50 days of trading for this stock 9.69, while it was recorded at 7.11 for the last single week of trading, and 10.84 for the last 200 days.

Despegar.com Corp. [DESP]: A deeper dive into fundamental analysis

Despegar.com Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.

An analysis of insider ownership at Despegar.com Corp. [DESP]

There are presently around $299 million, or 60.00% of DESP stock, in the hands of institutional investors. The top three institutional holders of DESP stocks are: ARISAIG PARTNERS (ASIA) PTE LTD. with ownership of 4,408,209, which is approximately 0% of the company’s market cap and around 14.99% of the total institutional ownership; ANCIENT ART, L.P., holding 3,631,259 shares of the stock with an approximate value of $27.2 million in DESP stocks shares; and ALLIANCEBERNSTEIN L.P., currently with $26.03 million in DESP stock with ownership of nearly -2.894% of the company’s market capitalization.

35 institutional holders increased their position in Despegar.com Corp. [NYSE:DESP] by around 3,766,930 shares. Additionally, 46 investors decreased positions by around 3,651,998 shares, while 16 investors held positions by with 32,502,528 shares. The mentioned changes placed institutional holdings at 39,921,456 shares, according to the latest SEC report filing. DESP stock had 11 new institutional investments in for a total of 447,322 shares, while 15 institutional investors sold positions of 1,002,492 shares during the same period.

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