Airbnb (NASDAQ:ABNB) Upgraded to Overweight at Wells Fargo & Company

Key Points

• Wells Fargo upgraded Airbnb to an “overweight” rating and raised its price target to $178 (from $136), implying about a 24.8% upside from the prior close.
• Airbnb's latest quarter missed EPS ($0.56 vs. $0.66) but posted revenue of $2.78B (up 12.9% y/y); the stock trades near $142.65 with a market cap of roughly $86.8B and a P/E of 35.3.
• The company has seen notable insider selling (363,510 shares, ~$46.4M over three months) while institutions own about 80.8% of shares; analysts' consensus is an average "Hold" rating with a $151.08 target.

Airbnb (NASDAQ:ABNB - Get Free Report) was upgraded by equities research analysts at Wells Fargo & Company from an "equal weight" rating to an "overweight" rating in a research report issued on Wednesday, MarketBeat reports. The firm currently has a $178.00 price target on the stock, up from their previous price target of $136.00. Wells Fargo & Company's price objective suggests a potential upside of 24.78% from the company's previous close.

Several other equities research analysts have also issued reports on the stock. Royal Bank Of Canada reissued an "outperform" rating on shares of Airbnb in a research report on Wednesday, January 14th. Weiss Ratings reissued a "hold (c)" rating on shares of Airbnb in a research report on Monday. B. Riley Financial raised shares of Airbnb from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $140.00 to $170.00 in a research report on Monday, January 12th. Sanford C. Bernstein dropped their price objective on shares of Airbnb from $165.00 to $162.00 and set an "outperform" rating for the company in a research report on Tuesday, January 6th. Finally, TD Cowen increased their price objective on shares of Airbnb from $150.00 to $160.00 and gave the stock a "buy" rating in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $151.08.

Airbnb Stock Performance

Shares of NASDAQ:ABNB opened at $142.65 on Wednesday. The stock has a 50-day simple moving average of $129.80 and a 200-day simple moving average of $127.91. The stock has a market capitalization of $86.83 billion, a P/E ratio of 35.31, a PEG ratio of 1.74 and a beta of 1.15. Airbnb has a 1 year low of $110.81 and a 1 year high of $145.77.

Airbnb (NASDAQ:ABNB - Get Free Report) last posted its quarterly earnings results on Thursday, February 12th. The company reported $0.56 EPS for the quarter, missing the consensus estimate of $0.66 by ($0.10). The business had revenue of $2.78 billion during the quarter, compared to analysts' expectations of $2.71 billion. Airbnb had a net margin of 20.51% and a return on equity of 30.88%. The company's quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.73 EPS. Analysts predict that Airbnb will post 4.96 earnings per share for the current year.

Insider Activity

In other news, insider Nathan Blecharczyk sold 4,260 shares of the company's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $125.29, for a total value of $533,735.40. Following the completion of the transaction, the insider directly owned 49,250 shares in the company, valued at approximately $6,170,532.50. This represents a 7.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Elinor Mertz sold 3,750 shares of the company's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $130.99, for a total transaction of $491,212.50. Following the completion of the transaction, the chief financial officer owned 394,359 shares of the company's stock, valued at $51,657,085.41. This trade represents a 0.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 363,510 shares of company stock worth $46,447,668. 27.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Fort Washington Investment Advisors Inc. OH boosted its holdings in shares of Airbnb by 3.5% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 962,551 shares of the company's stock worth $116,873,000 after buying an additional 32,501 shares during the period. Sumitomo Life Insurance Co. boosted its holdings in shares of Airbnb by 15.0% in the third quarter. Sumitomo Life Insurance Co. now owns 66,071 shares of the company's stock worth $8,022,000 after buying an additional 8,636 shares during the period. Cerity Partners LLC boosted its holdings in shares of Airbnb by 18.1% in the third quarter. Cerity Partners LLC now owns 364,824 shares of the company's stock worth $44,297,000 after buying an additional 55,838 shares during the period. National Pension Service boosted its holdings in shares of Airbnb by 1.1% in the third quarter. National Pension Service now owns 1,096,411 shares of the company's stock worth $133,126,000 after buying an additional 12,453 shares during the period. Finally, Abacus FCF Advisors LLC boosted its holdings in shares of Airbnb by 7.8% in the third quarter. Abacus FCF Advisors LLC now owns 135,577 shares of the company's stock worth $16,462,000 after buying an additional 9,864 shares during the period. 80.76% of the stock is currently owned by hedge funds and other institutional investors.

About Airbnb

Airbnb, Inc NASDAQ: ABNB operates a global online marketplace that connects travelers with hosts offering short-term lodging, unique accommodations and related travel experiences. The company's core platform enables individuals and professional property managers to list private homes, apartments, single rooms and entire properties, while providing search, booking and payment processing for guests. Airbnb earns revenue primarily through service fees charged to guests and hosts and offers tools to facilitate reservations, communications, and logistics between parties.

Beyond accommodations, Airbnb has expanded its product portfolio to include curated experiences led by local hosts, higher-end offerings such as Airbnb Luxe, and programs aimed at enhancing quality and safety like Airbnb Plus.

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