Analysts Advise “Hold” on Airbnb Stock Amid Mixed Ratings
Airbnb, Inc. (NASDAQ: ABNB) has received a consensus recommendation of “Hold” from the forty brokerage firms currently covering the stock, according to a report by MarketBeat.com. The breakdown of ratings reveals that five analysts suggest selling, while twenty-one have opted for a hold recommendation. Additionally, eleven analysts have issued buy recommendations, and three have assigned a strong buy rating to the company.
Analysts have set an average 12-month price target for Airbnb shares at approximately $143.88. Several research firms have recently updated their assessments of the stock. For instance, Barclays raised its target price from $105.00 to $107.00, maintaining an “underweight” rating. Similarly, Truist Financial adjusted its target from $104.00 to $107.00 and kept a “sell” rating. In contrast, DA Davidson reaffirmed a “buy” rating with a target price of $155.00, while Wedbush set a neutral rating and a price target of $130.00. Wells Fargo & Company also increased its price target from $111.00 to $118.00, retaining an “underweight” rating.
Quarterly Earnings Report Shows Mixed Results
Airbnb’s most recent quarterly earnings report, released on November 6, 2023, indicated that the company earned $2.21 per share, which fell short of analysts’ expectations of $2.31 by $0.10. Despite this, Airbnb reported a noteworthy revenue of $4.10 billion, slightly exceeding the anticipated $4.08 billion. The company’s revenue marked a 9.9% increase compared to the same quarter in the previous year, when it posted earnings per share of $2.13. Analysts project that Airbnb will achieve an earnings per share of $4.31 for the current fiscal year.
In terms of profitability, Airbnb recorded a return on equity of 32.14% and a net margin of 22.03%. These figures illustrate the company’s capacity to maintain a robust financial performance despite slight earnings misses.
Insider Transactions and Institutional Holdings
In insider trading news, Chief Financial Officer Elinor Mertz sold 12,184 shares of Airbnb stock on October 24, 2023, at an average price of $127.65, amounting to a total value of approximately $1.56 million. Post-transaction, Mertz’s remaining stake in the company stands at 444,070 shares, valued at around $56.69 million. This sale represents a 2.67% decrease in her position in Airbnb.
Additionally, insider Nathan Blecharczyk sold 77,527 shares on December 4, 2023, at an average price of $120.52, totaling about $9.34 million. Following this transaction, Blecharczyk holds 53,298 shares, valued at approximately $6.42 million, reflecting a significant 59.26% reduction in ownership. In total, insiders sold 1,575,867 shares worth $190.88 million over the last ninety days, with corporate insiders owning 27.83% of the company’s stock.
Institutional investors are also adjusting their stakes in Airbnb. Notably, Kentucky Trust Co acquired a new position valued at $25,000 during the second quarter. Meanwhile, E Fund Management Hong Kong Co. Ltd. increased its holdings by 70.9%, now owning 200 shares worth $26,000. Other firms, such as Aster Capital Management DIFC Ltd and Concord Wealth Partners, also purchased new positions, with Sunbelt Securities Inc. boosting its stake by 397.7% during the third quarter.
The growing interest from institutional investors, who collectively own 80.76% of the stock, underscores the ongoing market engagement with Airbnb as it continues to navigate the evolving landscape of the hospitality industry.
