Ctrip.com International, Ltd. (ADR) (CTRP) Shares Explode in Advance of MSCI Inclusion


Tomorrow is a big day for several Chinese-based internet companies, including Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP). Ctrip is a company that runs a China-focused travel agency via its website Ctrip.com, will be one of over a dozen companies added to the MSCI China Index. Based in New York, they, along with other companies such as Alibaba, and Baidu, have been absent from this index due to their location inside the U.S.

Shareholders jumped on shares of CTRP, especially late on Monday, in hopes that the MSCI inclusion will spur new investors on. The MSCI is used by many mutual funds, index funds, and ETFs, including the iShares MSCi China ETF (MCHI), and the iShares MSCi Emerging Index Fund.

While many investors are looking for this move to increase demand for shares of Ctrip.com International, others would argue that this move has been known for quite some time, and should have already been priced into the market. It should be interesting to follow this stock as the week goes on.

The stock increased 4.20% or $4.31 during the last trading session, hitting $107.01. About 13.71M shares traded hands or 204.67% up from the average. CTRP has risen 54.95% since April 27, 2015 and is uptrending. It has outperformed by 55.84% the S&P500.

Out of 12 analysts covering Ctrip.com International Ltd. (NASDAQ:CTRP), 12 rate it “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. $130 is the highest target while $88 is the lowest. The $120.50 average target is 12.61% above today’s ($107.01) stock price. Ctrip.com International Ltd. was the topic in 19 analyst reports since August 6, 2015 according to StockzIntelligence Inc. Piper Jaffray maintained the stock on November 19 with “Overweight” rating. Morgan Stanley upgraded it to “Overweight” rating and $98 target price in an August 6 report. Brean Capital maintained the shares of CTRP in a report on November 19 with “Buy” rating. Finally, Raymond James downgraded the stock to “Strong Buy” rating in a November 13 report.

Ctrip.com International, Ltd. is a travel service well-known provider for hotel accommodations, transportation ticketing services, packaged tours and corporate travel management in China. The company has a market cap of $14.67 billion. The Firm aggregates hotel and flight information to enable business and leisure travelers to make informed bookings. It currently has negative earnings. The Firm also helps clients book tour packages and guided tours.