Piper Sandler Downgrades Expedia Group to Underweight

In a significant move for investors, Piper Sandler has downgraded Expedia Group's outlook from Neutral to Underweight. This downgrade follows a decrease in the number of firm ownerships, pointing to shifting sentiments in the market.

Date: 12-05-2025

AI Rating: 5

Investment Outlook Change
Expedia Group has seen a notable downgrade from Piper Sandler, modifying its outlook to Underweight from Neutral. This change in outlook may result in lower stock prices in the near term, as analysts and investors react to reduced expectations for growth or profitability.
Institutional Ownership Trends
The report indicates a decline in active fund participation within Expedia Group, with a decrease of 3.07% in institutional ownership in the last quarter. While the total shares owned by institutions has increased by 3.60%, the overall decrease in the number of reporting funds may signal declining confidence among major investors. Lower interest from institutional owners can influence other potential buyers to shy away from the stock, further contributing to bearish pressure.
Portfolio Allocations
There are mixed signals from prominent shareholders. Windacre Partnership, while slightly reducing its shareholdings, increased its portfolio allocation significantly by 30.61%, suggesting confidence in long-term prospects. Moreover, Norges Bank's significant new entry also reflects potential interest from institutions looking to capitalize on lower stock prices in the sector. However, the overall trend of decreased holdings among other firms can’t be ignored and should weigh on investor sentiment.
Conclusion
The company’s current state reflects a cautious environment influenced by the institutional landscape. The downgrade and mixed signals from major shareholders indicate volatility and uncertainty surrounding Expedia Group's stock, likely leading to downward pressure on the stock prices in the upcoming months. Investors looking for stability might find it prudent to explore other investment opportunities until there are clearer signals of recovery in earnings or significant strategic changes within the firm.

Stocks: EXPE