Airbnb (NASDAQ:ABNB) Announces Earnings Results

Key Points

• Airbnb reported $1.03 earnings per share (EPS) for the quarter, exceeding analysts' expectations of $0.92 and showing a 12.7% year-over-year revenue growth to $3.10 billion.
• The company's stock price increased to $121.02, with a market cap of $75.81 billion and a consensus rating of "Hold" from analysts.
• Insider trading showed significant activity, with the Chief Accounting Officer selling 5,000 shares and the CFO selling 6,250 shares, reflecting a notable decrease in their ownership of the stock.

Airbnb (NASDAQ:ABNB - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.92 by $0.11, Zacks reports. The company had revenue of $3.10 billion for the quarter, compared to analysts' expectations of $3.02 billion. Airbnb had a net margin of 22.67% and a return on equity of 31.71%. The business's revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.86 EPS.

Airbnb Price Performance

Airbnb stock traded up $0.99 during mid-day trading on Friday, hitting $121.02. The company's stock had a trading volume of 5,784,578 shares, compared to its average volume of 5,320,721. The stock has a market cap of $75.81 billion, a price-to-earnings ratio of 29.30, a price-to-earnings-growth ratio of 2.43 and a beta of 1.13. The business has a 50 day moving average price of $135.10 and a 200-day moving average price of $131.06. Airbnb has a 12 month low of $99.88 and a 12 month high of $163.93.

Wall Street Analysts Forecast Growth

ABNB has been the topic of a number of research analyst reports. Truist Financial reissued a "sell" rating and set a $106.00 price objective (down previously from $112.00) on shares of Airbnb in a research report on Friday, May 30th. Phillip Securities cut shares of Airbnb from a "hold" rating to a "moderate sell" rating in a research report on Friday, May 9th. Morgan Stanley dropped their price target on shares of Airbnb from $130.00 to $120.00 and set an "underweight" rating on the stock in a research report on Thursday. Canaccord Genuity Group dropped their target price on shares of Airbnb from $190.00 to $180.00 and set a "buy" rating on the stock in a research report on Monday, April 28th. Finally, Citigroup dropped their target price on shares of Airbnb from $170.00 to $155.00 and set a "buy" rating on the stock in a research report on Monday, May 5th. Five research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $143.59.

Insider Buying and Selling at Airbnb

In other news, CAO David C. Bernstein sold 5,000 shares of the company's stock in a transaction dated Thursday, July 24th. The shares were sold at an average price of $142.00, for a total transaction of $710,000.00. Following the completion of the transaction, the chief accounting officer directly owned 42,619 shares of the company's stock, valued at approximately $6,051,898. This represents a 10.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Elinor Mertz sold 6,250 shares of the company's stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $135.86, for a total transaction of $849,125.00. Following the transaction, the chief financial officer directly owned 461,361 shares of the company's stock, valued at approximately $62,680,505.46. This trade represents a 1.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,671,023 shares of company stock valued at $223,195,427. Company insiders own 27.91% of the company's stock.

Hedge Funds Weigh In On Airbnb

A hedge fund recently bought a new stake in Airbnb stock. Caxton Associates LLP purchased a new position in Airbnb, Inc. (NASDAQ:ABNB - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,158 shares of the company's stock, valued at approximately $258,000. Institutional investors own 80.76% of the company's stock.

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.

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