Airbnb, Inc. (NASDAQ: ABNB) has recently garnered a consensus recommendation of “Hold” from a total of forty brokerage firms currently covering the stock, according to MarketBeat.com. This analysis reflects a mixed sentiment among analysts, with five firms issuing a sell recommendation, twenty-one suggesting a hold, eleven advocating for a buy, and three offering a strong buy rating.
The average price target over the next twelve months, based on the assessments of analysts who have issued reports within the last year, stands at approximately $143.88. Several financial institutions have provided insights into their evaluations of Airbnb’s stock performance in recent days.
Analyst Ratings and Price Targets
Barclays recently adjusted its price target for Airbnb from $105.00 to $107.00 while maintaining an “underweight” rating in a report released on November 7. Similarly, Truist Financial raised its target price to $107.00 and assigned a “sell” rating. On the other hand, DA Davidson reaffirmed its “buy” rating and set a target price of $155.00 on the shares.
Additionally, Wedbush reissued a “neutral” rating with a price target of $130.00, also reported on November 7. Wells Fargo & Company raised its price objective from $111.00 to $118.00 while maintaining an “underweight” rating in a research note published on December 1.
Recent Earnings Performance
Airbnb disclosed its quarterly earnings on November 6, reporting earnings per share of $2.21. This result fell short of analysts’ consensus estimates of $2.31 by $0.10. The company recorded a return on equity of 32.14% and a net margin of 22.03%. Despite this shortfall in earnings, Airbnb achieved a revenue of $4.10 billion, slightly surpassing analysts’ expectations of $4.08 billion. This marks a 9.9% increase in revenue compared to the same period last year, where the company had reported earnings per share of $2.13.
Analysts predict that Airbnb will post earnings per share of $4.31 for the current fiscal year, indicating cautious optimism for future performance.
Insider Trading Activities
In other developments, Chief Financial Officer Elinor Mertz sold 12,184 shares of Airbnb stock on October 24 at an average price of $127.65, totaling approximately $1,555,287.60. After this transaction, Mertz retained 444,070 shares, valued at around $56,685,535.50. This sale represented a 2.67% decrease in her ownership.
Additionally, insider Nathan Blecharczyk sold 77,527 shares on December 4 at an average price of $120.52, bringing in a total of about $9,343,554.04. Following this sale, Blecharczyk held 53,298 shares valued at approximately $6,423,474.96, marking a significant 59.26% reduction in his stake.
In total, corporate insiders sold 1,575,867 shares worth $190,875,764 in the last 90 days, with corporate insiders currently owning 27.83% of the company’s stock.
Institutional Investor Activity
Recent activity among institutional investors indicates a shift in holdings. Kentucky Trust Co made a new investment in Airbnb valued at $25,000 during the second quarter. Additionally, E Fund Management Hong Kong Co. Ltd. increased its position in Airbnb shares by 70.9% during the same period, acquiring a total of 200 shares worth about $26,000.
Other notable transactions include Aster Capital Management DIFC Ltd, which also purchased a new position in Airbnb during the third quarter valued at approximately $25,000. Concord Wealth Partners and Sunbelt Securities Inc. also increased their stakes, with the latter raising its position by 397.7% during the third quarter.
Currently, hedge funds and institutional investors collectively own 80.76% of Airbnb’s stock, reflecting strong institutional interest in the company.
Airbnb, Inc., along with its subsidiaries, operates a platform that connects hosts and guests globally, facilitating the booking of accommodations and experiences. The company primarily offers private rooms, primary homes, and vacation homes, catering to a diverse range of travel preferences.
