On January 31, 2025, NEUBERGER BERMAN GROUP LLC (Trades, Portfolio), a prominent investment firm, made a significant move by reducing its holdings in Despegar.com Corp (DESP, Financial). The firm decreased its position by 2,723,483 shares, trading at a price of $19.22 per share. This transaction resulted in a -0.04 impact on the firm's portfolio, leaving it with 2,788,364 shares of Despegar.com Corp, which now constitutes 0.04% of its portfolio. This strategic decision reflects the firm's ongoing portfolio management and investment strategies.
NEUBERGER BERMAN GROUP LLC: A Profile
NEUBERGER BERMAN GROUP LLC is a well-established investment firm headquartered at 1290 Avenue of the Americas, New York, NY 10104. With a total equity of $128.11 billion, the firm is known for its diversified investment portfolio, which includes top holdings such as Apple Inc (AAPL, Financial), Amazon.com Inc (AMZN, Financial), Microsoft Corp (MSFT, Financial), NVIDIA Corp (NVDA, Financial), and JPMorgan Chase & Co (JPM, Financial). The firm's investment strategy is not explicitly specified, but it is evident that it focuses heavily on the technology and financial services sectors.
Despegar.com Corp: An Overview
Despegar.com Corp, based in Argentina, operates in the travel and leisure industry. As an online travel company, it offers a wide range of products, including airline tickets, travel packages, hotels, and other travel-related services. The company has a market capitalization of $1.61 billion, with its stock currently priced at $19.20. Despite its significant market presence, Despegar.com Corp is considered significantly overvalued, with a GF Value of $10.37 and a price to GF Value ratio of 1.85. The company's [GF-Score](https://www.gurufocus.com/term/gf-score/DESP) is 68/100, indicating poor future performance potential.
Financial Metrics and Valuation
Despegar.com Corp's financial metrics reveal a [Price-to-Earnings (PE) ratio](https://www.gurufocus.com/term/pe/DESP) of 79.92, suggesting a high valuation relative to its earnings. The company's year-to-date price change is 0.52%, while its IPO price change stands at -33.79%. The [GF Value Rank](https://www.gurufocus.com/term/rank-gf-value/DESP) is 1/10, further emphasizing its overvaluation. Despite these challenges, the company has demonstrated a robust revenue growth of 67.90% over the past three years, supported by a [Cash to Debt ratio](https://www.gurufocus.com/term/cash-to-debt/DESP) of 3.25.
Performance and Growth Indicators
Despegar.com Corp's performance indicators present a mixed picture. The company's [Balance Sheet Rank](https://www.gurufocus.com/term/rank-balancesheet/DESP) is 6/10, while its [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/DESP) is 4/10, indicating moderate financial strength and profitability. The [Growth Rank](https://www.gurufocus.com/term/rank-growth/DESP) is 7/10, reflecting its potential for future growth. However, the company's [interest coverage](https://www.gurufocus.com/term/interest-coverage/DESP) is relatively low at 1.94, and its [Altman Z score](https://www.gurufocus.com/term/zscore/DESP) of 1.18 suggests potential financial distress.
Market and Momentum Analysis
In terms of market momentum, Despegar.com Corp has a [Relative Strength Index (RSI) 14 Day](https://www.gurufocus.com/term/rsi-14-day/DESP) of 59.77, indicating a neutral position in terms of buying and selling pressure. The [Momentum Index 6 - 1 Month](https://www.gurufocus.com/term/momentum-index-6-1-month/DESP) is 92.08, suggesting a positive short-term momentum. The company's [Return on Assets (ROA)](https://www.gurufocus.com/term/roa/DESP) is 3.81%, reflecting its ability to generate earnings from its assets.
Conclusion
The reduction of shares in Despegar.com Corp by NEUBERGER BERMAN GROUP LLC (Trades, Portfolio) signifies a strategic adjustment in the firm's portfolio. While the transaction slightly decreased the firm's exposure to Despegar.com Corp, it remains a part of the portfolio, albeit with a reduced position. For Despegar.com Corp, this transaction may impact its market perception, especially given its current valuation challenges. Investors should consider these factors when evaluating the company's future prospects and market position.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
