SAN FRANCISCO—Elinor Mertz, Chief Financial Officer of Airbnb, Inc. (NASDAQ:ABNB), recently executed a series of stock sales amounting to approximately $2.29 million. The transactions, which took place on December 3 and 4, were conducted under a pre-established Rule 10b5-1 trading plan. The sales come as Airbnb maintains a strong financial position, with InvestingPro data showing an impressive 83% gross profit margin and a market capitalization of $84.9 billion.
On December 3, Mertz sold 10,500 shares of Airbnb's Class A common stock at an average price of $136.97 per share. The following day, she sold an additional 6,250 shares at an average price of $136.55 per share. These transactions were part of a planned strategy to manage her holdings in the company. According to InvestingPro, which offers 13 additional key insights for this stock, the company maintains a "GREAT" financial health score and holds more cash than debt on its balance sheet.
Following these sales, Mertz retains direct ownership of 497,488 shares of Airbnb. The sales were executed as part of a trading plan adopted on May 31, 2024, providing transparency and adherence to regulatory guidelines. Based on current trading metrics and comprehensive analysis available through the Pro Research Report on InvestingPro, Airbnb's stock is trading near its Fair Value.
In other recent news, Airbnb has been the subject of various analyst adjustments. Truist Securities slightly lowered its price target for Airbnb to $123, while maintaining a Hold rating. The firm revised its earnings projections for the company for the upcoming years, with a slight increase in the adjusted EBITDA forecast for 2024 to $3.926 billion, and a reduction in the earnings per share (EPS) estimate for the same year to $3.92.
DA Davidson has set a new price target for Airbnb at $131, following Airbnb's third quarter of 2024 results, which surpassed expectations with revenues coming in at $3,732 million, a 10% increase year-over-year. However, PhillipCapital downgraded Airbnb's stock from Neutral to Reduce, citing concerns about Airbnb's valuation premium.
Evercore ISI maintained its "In Line" rating for Airbnb, based on positive October data from AirDNA, a short-term rental analytics company. Susquehanna also maintained a Positive rating on Airbnb, raising its price target to $160 from the previous $130. The firm's analysis indicates a slight increase in the expected EBITDA and EPS for 2024, and a modest 1% increase in the 2025 revenue estimates. These are some of the recent developments for Airbnb.
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