Priceline Group Inc (NASDAQ:PCLN) announced that it has agreed to invest an additional $500 million in Ctrip.com International, Ltd. (NASDAQ:CTRP), China’s leading online travel company, through a convertible bond.
Including the new bond, The Priceline Group has invested about $1.9 billion in Ctrip convertible bonds and American Depositary Shares since 2014. Immediately following issuance of the new $500 million bond, assuming conversion of bonds held, The Priceline Group will own approximately 45.5 million American Depository Shares of Ctrip on a fully diluted basis.
The Priceline Group and Ctrip will continue their existing commercial partnership, whereby accommodations inventory is cross-promoted between the brands.
“Today’s announcement reflects our ongoing commitment to the partnership between Ctrip and The Priceline Group, which began in 2012,” saidDarren Huston, CEO of Booking.com and President & CEO of The Priceline Group. “The investment is an important part of our broader strategy to continue to grow our online travel business to, from and within China.” (Original Source)
Shares of Priceline are currently trading at 1,299.70, up $4.71 or 0.36%. PCLN has a 1-year high of $1476.52 and a 1-year low of $990.69. The stock’s 50-day moving average is $1335.25 and its 200-day moving average is $1259.13.
On the ratings front, Priceline has been the subject of a number of recent research reports. In a report issued on November 16, Morgan Stanley analyst Brian Nowak maintained a Hold rating on PCLN. Separately, on the same day, Janney Montgomery Scott’s Brian McGill maintained a Hold rating on the stock and has a price target of $1225.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brian Nowak and Brian McGill have a total average return of 7.3% and 8.8% respectively. Nowak has a success rate of 61.0% and is ranked #494 out of 3637 analysts, while McGill has a success rate of 67.7% and is ranked #664.
Overall, 5 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $1482.14 which is 14.5% above where the stock closed yesterday.
Priceline Group Inc is a provider of online travel and travel related reservation and search services. The Company offer consumers accommodation reservations through its Booking.com, priceline.com and agoda.com brands.