Home News Tripadvisor shares rise on news of committee to consider settlement proposals: key level to watch

Tripadvisor shares rise on news of committee to consider settlement proposals: key level to watch

by SuperiorInvest

Key takeaways

  • Tripadvisor shares rose more than 13% in after-hours trading on Monday after the online travel company said it had formed a special committee to consider potential deal proposals.
  • The company cautioned that no transaction was assured and the committee has not made any decision on a possible transaction.
  • Tripadvisor stock price may encounter a resistance zone between $27 and $28 from the August 2022 and February 2023 highs.

Tripadvisor, Inc.

Source: TradingView.com.

Shares of Tripadvisor (TRIP) rose more than 13% in after-hours trading Monday night after the online travel advisory and review company said it had established a special committee to consider potential deal proposals. , indicating their willingness to explore strategic opportunities.

According to a statement posted on the company's website, the special committee will be made up of independent members of Tripadvisor's board of directors and will have the mandate to “evaluate any proposal that may be presented for a possible transaction, and any alternative thereto, regarding Tripadvisor. .” The committee also hired independent investment banking firm Centerview Partners LLC as a financial advisor to assist in the evaluation process.

Potential proposals “include those that may arise in the future as a result of Liberty TripAdvisor Holdings Inc.'s (“LTRP”) recent disclosure of its intention to evaluate potential alternatives involving LTRP and Tripadvisor,” the statement added.

The company cautioned that no transaction was assured and that the committee “has not made any decisions regarding a potential transaction.” He added that a potential deal would be subject to more checks and balances and would require approval from both the board and the special committee. The statement said shareholders do not need to act on the announcement at this time.

Tripadvisor will release its fourth-quarter and full-year 2023 financial results on Wednesday after the closing bell. Analysts expect the online travel company to post earnings of 7 cents per share, up from 4 cents per share in the corresponding quarter last year.

TRIP stock formed a double bottom pattern between May and November last year, before quickly reclaiming a key support area around $17.10. Since then, the stock has continued to rise, aside from several modest pullbacks towards the 50-day moving average. If the price continues to rise, keep an eye on the chart for a resistance zone between $27 and $28 near the August 2022 and February 2023 highs.

Tripadvisor shares gained 13.6% to $25.42 in after-hours trading on Monday.

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As of the date of writing this article, the author does not hold any of the above securities.

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