Airbnb (NASDAQ:ABNB) Shares Gap Up Following Better-Than-Expected Earnings

Airbnb, Inc. (NASDAQ:ABNB) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $141.04, but opened at $158.19. Airbnb shares last traded at $161.51, with a volume of 8,103,185 shares traded.

The company reported $0.73 EPS for the quarter, topping the consensus estimate of $0.61 by $0.12. Airbnb had a return on equity of 32.88% and a net margin of 16.96%.

Wall Street Analyst Weigh In

ABNB has been the topic of a number of analyst reports. Phillip Securities reissued a “reduce” rating and issued a $120.00 target price on shares of Airbnb in a research note on Tuesday, November 12th. The Goldman Sachs Group raised Airbnb from a “sell” rating to a “neutral” rating and increased their target price for the stock from $110.00 to $153.00 in a report on Friday. HSBC raised Airbnb from a “hold” rating to a “buy” rating in a research note on Friday. Piper Sandler increased their price objective on Airbnb from $125.00 to $145.00 and gave the stock a “neutral” rating in a research note on Friday, November 8th. Finally, Wells Fargo & Company reduced their target price on shares of Airbnb from $100.00 to $96.00 and set an “underweight” rating on the stock in a research note on Thursday, January 16th. Five equities research analysts have rated the stock with a sell rating, twenty have given a hold rating and eleven have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $145.79.

Insider Buying and Selling

In related news, CTO Aristotle N. Balogh sold 500 shares of Airbnb stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $136.01, for a total transaction of $68,005.00. Following the transaction, the chief technology officer now owns 185,414 shares of the company’s stock, valued at $25,218,158.14. This trade represents a 0.27 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Brian Chesky sold 190,301 shares of the company’s stock in a transaction that occurred on Wednesday, February 12th. The shares were sold at an average price of $140.51, for a total transaction of $26,739,193.51. Following the completion of the sale, the chief executive officer now directly owns 12,231,685 shares of the company’s stock, valued at $1,718,674,059.35. The trade was a 1.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,608,005 shares of company stock valued at $214,394,023 over the last three months. Company insiders own 27.83% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ABNB. Edgewood Management LLC raised its position in shares of Airbnb by 9.2% during the third quarter. Edgewood Management LLC now owns 13,582,433 shares of the company’s stock worth $1,722,388,000 after purchasing an additional 1,143,464 shares during the period. Geode Capital Management LLC increased its stake in Airbnb by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 9,472,559 shares of the company’s stock worth $1,244,514,000 after purchasing an additional 72,991 shares in the last quarter. Clearbridge Investments LLC raised its holdings in Airbnb by 147.3% during the 4th quarter. Clearbridge Investments LLC now owns 4,349,026 shares of the company’s stock worth $571,505,000 after buying an additional 2,590,475 shares during the period. Northern Trust Corp lifted its stake in Airbnb by 8.4% in the fourth quarter. Northern Trust Corp now owns 4,296,835 shares of the company’s stock valued at $564,647,000 after buying an additional 331,607 shares in the last quarter. Finally, Pacer Advisors Inc. boosted its holdings in shares of Airbnb by 6,085.6% in the third quarter. Pacer Advisors Inc. now owns 4,241,557 shares of the company’s stock valued at $537,872,000 after buying an additional 4,172,985 shares during the period. 80.76% of the stock is currently owned by institutional investors.

Airbnb Price Performance

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.62 and a quick ratio of 1.62. The company’s 50-day moving average price is $133.49 and its 200-day moving average price is $130.17. The company has a market cap of $102.34 billion, a P/E ratio of 56.64, a P/E/G ratio of 1.88 and a beta of 1.12.

About Airbnb

Airbnb, Inc, together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes.