SAN FRANCISCO—Brian Chesky, CEO and Chairman of Airbnb, Inc. (NASDAQ:ABNB), an $83 billion market cap company with impressive 83% gross profit margins, recently executed a series of stock sales amounting to a total of $5,122,772. The transactions, which occurred on January 21, 2025, involved the sale of Class A Common Stock at prices ranging from $131.69 to $135.21 per share.
The stock sales were conducted under a pre-established Rule 10b5-1 trading plan, adopted on August 22, 2024. Following these transactions, Chesky maintains direct ownership of 12,460,447 shares. According to InvestingPro analysis, Airbnb currently trades at relatively high valuation multiples, though the company maintains strong financial health with more cash than debt on its balance sheet.
This series of transactions highlights Chesky's ongoing financial strategy as part of his role in leading the company. Investors will likely keep a close watch on Airbnb's stock movements and Chesky's future transactions as the company continues to navigate the evolving travel and hospitality landscape. With analyst price targets ranging from $85 to $170 and the company's next earnings report due February 18, 2025, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Airbnb finds itself under investigation by Spain's Consumer Rights Ministry over its failure to remove thousands of unregulated rental listings. The company now faces a potential penalty of up to 100,000 euros. In the US, Booking (NASDAQ:BKNG).com reported a delay in vacation planning due to inflation, with consumers opting for less expensive hotels or reducing vacation lengths.
On the financial front, Truist Securities adjusted its price target for Airbnb to $123, maintaining a Hold rating. The firm updated its adjusted EBITDA forecast for 2024 to $3.926 billion, while the earnings per share estimate was reduced to $3.92. For 2025, the adjusted EBITDA is expected to reach $4.325 billion, with an EPS of $4.46.
DA Davidson set a new price target for Airbnb at $131, reflecting an 11.4% year-over-year increase in 2025 Gross Bookings and an 11.7% increase in revenue. Airbnb's third quarter of 2024 results surpassed expectations, with revenues coming in at $3,732 million, a 10% increase year-over-year.
PhillipCapital downgraded Airbnb's stock from Neutral to Reduce, citing concerns about Airbnb's valuation premium. Despite the downgrade, the firm slightly increased its revenue and adjusted profit after tax and minority interests estimates for the fiscal year 2024 by 1%. These are recent developments in the companies.
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