Barclays Issues Pessimistic Forecast for Booking (NASDAQ:BKNG) Stock Price

Key Points

• Barclays lowered its Booking price target from $210 to $170 but maintained an Overweight rating; the new target implies about 1.7% downside from the share price cited in the report.
• Analysts’ overall view remains positive: Booking has a “Moderate Buy” consensus rating and an average price target of $223.33, despite recent target cuts from several firms.
• Booking beat quarterly earnings and revenue estimates, but revenue was down 1.2% year over year. Management also expects slower fourth-quarter travel growth, while a roughly $900 million FTC-related impact weighed on reported revenue.

Booking (NASDAQ:BKNG - Get Free Report) had its price target decreased by equities research analysts at Barclays from $210.00 to $170.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the business services provider's stock. Barclays's price target points to a potential downside of 1.72% from the stock's current price.

Several other analysts have also recently issued reports on the stock. UBS Group cut their price target on shares of Booking from $274.00 to $265.00 and set a "buy" rating on the stock in a report on Tuesday. Rosenblatt Securities cut their target price on shares of Booking from $245.00 to $210.00 and set a "buy" rating on the stock in a research note on Wednesday. Robert W. Baird set a $230.00 price target on shares of Booking in a research report on Wednesday, August 5th. Melius Research set a $225.00 price target on Booking in a research note on Tuesday, October 20th. Finally, Citigroup reissued an "outperform" rating on shares of Booking in a report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $223.33.

Booking Stock Performance

Shares of NASDAQ:BKNG traded up $17.30 during trading on Wednesday, hitting $172.97. The company's stock had a trading volume of 6,211,450 shares, compared to its average volume of 8,134,348. The company has a market capitalization of $129.97 billion, a PE ratio of 19.12, a PEG ratio of 0.96 and a beta of 1.17. Booking has a fifty-two week low of $146.28 and a fifty-two week high of $220.81. The stock's 50-day moving average price is $168.99 and its two-hundred day moving average price is $176.70.

Booking (NASDAQ:BKNG - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The business services provider reported $4.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.49 by $0.17. Booking had a negative return on equity of 102.96% and a net margin of 25.53%. The company had revenue of $9.79 billion for the quarter, compared to the consensus estimate of $9.55 billion. During the same period in the previous year, the business earned $99.50 EPS. Booking's revenue for the quarter was down 1.2% compared to the same quarter last year. On average, equities analysts predict that Booking will post 10.48 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Robert J. Mylod, Jr. sold 1,000 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $200.00, for a total transaction of $200,000.00. Following the sale, the director owned 14,000 shares in the company, valued at $2,800,000. This represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paulo Pisano sold 3,000 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $203.48, for a total transaction of $610,440.00. Following the sale, the insider owned 73,400 shares in the company, valued at approximately $14,935,432. This trade represents a 3.93% decrease in their position. 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. In the last 90 days, insiders sold 77,425 shares of company stock worth $16,004,164. Company insiders own 0.17% of the company's stock.

Hedge Funds Weigh In On Booking

Several institutional investors have recently made changes to their positions in BKNG. Mill Capital Management LLC grew its stake in shares of Booking by 1.1% during the first quarter. Mill Capital Management LLC now owns 5,721 shares of the business services provider's stock worth $24,087,000 after purchasing an additional 65 shares during the period. Van Diest Capital LLC lifted its stake in Booking by 30.1% in the first quarter. Van Diest Capital LLC now owns 281 shares of the business services provider's stock valued at $1,185,000 after buying an additional 65 shares during the period. Garrett Wealth Advisory Group LLC lifted its stake in Booking by 2.5% in the third quarter. Garrett Wealth Advisory Group LLC now owns 2,667 shares of the business services provider's stock valued at $434,000 after buying an additional 65 shares during the period. Adelphi Trust Co lifted its stake in Booking by 0.7% in the third quarter. Adelphi Trust Co now owns 9,660 shares of the business services provider's stock valued at $1,574,000 after buying an additional 67 shares during the period. Finally, Allen Capital Group LLC boosted its holdings in Booking by 11.0% during the first quarter. Allen Capital Group LLC now owns 697 shares of the business services provider's stock worth $2,934,000 after buying an additional 69 shares during the last quarter. 92.42% of the stock is owned by institutional investors.

Booking News Roundup

Here are the key news stories impacting Booking this week:

• Positive Sentiment: Booking reported adjusted earnings of $4.66 per share, above analysts’ estimates, while room nights grew 7% and adjusted EBITDA increased 9%. These operating results offered investors a positive counterpoint to weaker reported figures. Q3 earnings call highlights
• Positive Sentiment: The company is investing in AI-powered booking tools and loyalty programs, and pursuing cost savings. Those initiatives could support future growth and efficiency, though their impact remains to be seen. Earnings call highlights
• Neutral Sentiment: Several firms lowered price targets after the results but maintained Buy or Outperform ratings, including B. Riley, Wedbush, Bank of America and Rosenblatt. The revisions temper expectations, while continued positive ratings suggest many analysts still see upside. Analysts cut forecasts
• Negative Sentiment: Management expects slower Q4 travel growth amid soft international demand, citing factors including Middle East conflict, higher airfares and European turmoil. A roughly $900 million FTC-related impact also weighed on reported revenue, which declined year over year despite growth in adjusted revenue. FTC-related revenue impact

About Booking

Booking Holdings Inc is a global online travel and restaurant-reservation company that connects consumers with travel providers through digital platforms and mobile applications. Its services include accommodations, flights, rental cars, cruises, vacation packages, restaurant reservations and other travel-related offerings.

The company operates a portfolio of well-known brands, including Booking.com, Priceline, Agoda, KAYAK, OpenTable, Rentalcars.com and Kayak-associated travel services.

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