7) Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND)
Short % of Float (As of 15 August): 6.98%
Number of Hedge Fund Holders: 16
Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) offers expedition cruising and adventure travel services.
As of 15th August 2024, the company’s short % of float stood at ~6.98% as short sellers believe that geopolitical headwinds have negatively impacted travel itineraries. The company’s margins remain pressured despite elevated activity. This was mainly because of lower occupancy as compared to the pre-Covid levels. Also, cost inflation led to higher expenses which have impacted its margins. On a TTM basis, its operating margin was -6.01%.
In its 2Q 2024 results, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) highlighted that higher general and administrative costs limited the gains in Lindblad segment’s Adjusted EBITDA. These costs were led by higher personnel costs and increased royalties associated with the expanded National Geographic agreement. Considering the geopolitical issues, there can be pressures on its occupancy levels. Also, increased debt might weigh on the company’s future. As of 2Q 2024 end, its Long-term debt (less current portion) stood at $623.5 million, an increase from $621.7 million (as on December 31, 2023).
However, Wall Street experts believe that the recently announced transactions are expected to drive future growth. The company announced the acquisition of Wineland-Thompson Adventures, which expands Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND)’s land experience segment with Tanzania safari specialist Thomson Safaris, and Gibb’s Farm lodge in East Africa. Market experts believe that the main competitive advantage is its ability to provide premium experiences, as the company specializes in smaller and more expensive adventure cruises. As a result, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) has built a strong loyalty base of wealthy customers.
The company expanded its partnership with National Geographic in November 2023. It is now the only partner for National Geographic cruises until 2040. It will be with The Walt Disney Company, which is an affiliate of National Geographic, providing expansion opportunities.
B. Riley upped their price target on the shares of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) from $15.00 to $16.00, giving a “Buy” rating on 23rd August. As per Insider Monkey’s 2Q 2024, 16 hedge funds were long Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND), up from 15 in the preceding quarter.
Ariel Investments, an investment management company, released first-quarter 2024 investor letter. Here is what the fund said:
“In contrast, shares of luxury adventure travel services company, Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) traded sharply lower in the quarter on an earnings miss and cautious full year 2024 outlook, as geopolitical headwinds negatively impact travel itineraries. Importantly, LIND continues to deliver positive performance within its land-based segment, while management remains disciplined in not sacrificing long-term pricing for sea-based voyages to stimulate near-term demand. Looking ahead, we believe LIND’s stable land-based segment will continue to anchor the company’s profitability. We also expect the enhancement of its strategic relationship with Disney/National Geographic to provide a meaningful tailwind for multiple expansion as the company extends its market share in the expedition tourism niche.”
