Tripadvisor has formed a committee to explore possible deals
Tripadvisor Inc (NASDAQ:TRIP) stock is surging today, after news that the company has formed a committee to explore possible deals. The news comes ahead of the travel name's earnings report, which is due out after the close tomorrow, Feb. 14, in which Wall Street expects profits of 22 cents per share.
At last glance, TRIP was up 14% at $25.51, trading at its highest levels in roughly a year. The security has been chopping higher since its Nov. 1 bottom of $14.15, its lowest point since March 2020 -- when the pandemic halted travel. Since the start of 2024, the equity is up 17%.
Call traders are chiming in on Tripadvisor stock today, with 12,000 calls exchanged so far -- 21 times the volume typically seen at this point -- in comparison to 1,835 puts. The February 20 call is the most popular by far, expiring at the end of this week.
Looking at TRIP's post-earnings history, the stock has finished higher after half of its last eight reports, including an 11.3% pop following its most recent November report. This time around, the options pits are pricing in a 13.5% move, regardless of direction, which is higher than the 9.1% move the security averaged over the past two years.