HomeAway Shares Drop to Record Low on ITG Analyst Report

HomeAway Inc. (AWAY), an online vacation- rental service, tumbled to the lowest since December after ITG Investment Research issued a report expressing concern about the company.

HomeAway fell 6.1 percent to $20.38 at the close in New York. Earlier, the stock touched $19.76, its lowest intraday price since the Austin, Texas-based company sold shares to the public in June 2011 at $27 apiece.

Steve Weinstein, an analyst at ITG in New York, “issued a cautious note on AWAY before the market open this morning based on our proprietary data analysis,” the firm said in an e-mailed statement. ITG spokesman James Farley said the report won’t be provided to the press for a couple of days, and he declined to elaborate on Weinstein’s estimates for HomeAway.

HomeAway said in April that sales this year will rise to $280.4 million to $284.7 million, from $230.2 million in 2011. Adjusted earnings will be $80 million to $82 million. On a conference call at the time, Chief Executive Officer Brian Sharples said that Europe is “still quite a wildcard for us.”

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.