Chesley Taft & Associates LLC Increases Position in Booking Holdings Inc. $BKNG

Key Points

• Institutional interest increased: Chesley Taft & Associates raised its Booking Holdings position by 2,394.5% to 11,300 shares worth about $2.0 million. Hedge funds and other institutions collectively own 92.42% of BKNG.
• Quarterly results beat expectations: Booking reported adjusted EPS of $2.54 versus the $2.43 consensus and revenue of $7.35 billion, up 8.1% year over year. Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $234.69.
• Risks remain in the near term: Softer third-quarter guidance, moderating room-night growth, rising marketing costs and competition from Google could limit further gains. Recent insider sales were conducted under pre-arranged Rule 10b5-1 plans, reducing their significance as bearish signals.

Chesley Taft & Associates LLC increased its holdings in Booking Holdings Inc. (NASDAQ:BKNG - Free Report) by 2,394.5% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 11,300 shares of the business services provider's stock after purchasing an additional 10,847 shares during the quarter. Chesley Taft & Associates LLC's holdings in Booking were worth $2,014,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of BKNG. Life Cycle Investment Partners Ltd purchased a new stake in Booking during the 4th quarter worth approximately $361,463,000. Rit Capital Partners PLC purchased a new position in shares of Booking in the fourth quarter valued at approximately $51,396,000. Eurizon Capital SGR S.p.A. purchased a new position in shares of Booking in the fourth quarter valued at approximately $210,352,000. Cardano Risk Management B.V. boosted its stake in shares of Booking by 862.0% in the fourth quarter. Cardano Risk Management B.V. now owns 218,080 shares of the business services provider's stock worth $1,167,890,000 after acquiring an additional 195,411 shares during the last quarter. Finally, Rathbones Group PLC boosted its stake in shares of Booking by 20.5% in the fourth quarter. Rathbones Group PLC now owns 64,908 shares of the business services provider's stock worth $347,604,000 after acquiring an additional 11,042 shares during the last quarter. Hedge funds and other institutional investors own 92.42% of the company's stock.

Key Headlines Impacting Booking

Here are the key news stories impacting Booking this week:

• Positive Sentiment: Quarterly results exceeded expectations: Booking reported adjusted earnings of $2.54 per share, above the $2.43 consensus estimate, while revenue increased 8.1% year over year to $7.35 billion, surpassing forecasts of $7.19 billion. The results suggested resilient travel demand and helped support the stock’s advance.
• Positive Sentiment: Analyst optimism strengthened: UBS raised its price target to $274, while Wedbush, Benchmark and BTIG maintained bullish ratings with targets ranging from $247 to $250. The analyst actions reinforce expectations for additional upside following the earnings report. Booking Given New Price Target at UBS Group
• Positive Sentiment: Longer-term growth initiatives remain supportive: Management cited early benefits from artificial-intelligence personalization, cost savings and its connected-trip strategy, potentially improving efficiency and expanding customer engagement. Is Booking Holdings a Buying Opportunity?
• Neutral Sentiment: Dividend provides modest shareholder support: Booking declared a quarterly dividend of $0.42 per share, payable September 30 to shareholders of record September 11. The annualized yield of approximately 0.8% is unlikely to materially change the investment case.
• Neutral Sentiment: Director sale was scheduled in advance: Director Robert Mylod Jr. sold 1,000 shares for $206,700 under a pre-arranged Rule 10b5-1 plan. He continues to own 15,000 shares, limiting the significance of the transaction as a bearish signal. Booking Director Stock Sale
• Negative Sentiment: Near-term outlook is less robust: Investors remain cautious about soft third-quarter revenue guidance, moderating room-night growth and marketing expenses rising faster than revenue. Competition from Google, geopolitical uncertainty and technically overbought conditions could limit further gains after the recent rally. Why Analysts Are Bullish on Booking

Insider Activity

In other news, VP Peter J. Millones sold 62,500 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $163.67, for a total value of $10,229,375.00. Following the sale, the vice president directly owned 425,075 shares of the company's stock, valued at approximately $69,572,025.25. The trade was a 12.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert J. Mylod, Jr. sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $206.70, for a total transaction of $206,700.00. Following the completion of the transaction, the director owned 15,000 shares in the company, valued at approximately $3,100,500. This represents a 6.25% 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. In the last three months, insiders have sold 69,625 shares of company stock valued at $11,652,075. Company insiders own 0.17% of the company's stock.

Booking Stock Up 3.4%

Shares of Booking stock opened at $214.42 on Friday. The firm has a market cap of $161.11 billion, a PE ratio of 23.73, a price-to-earnings-growth ratio of 1.31 and a beta of 1.07. Booking Holdings Inc. has a 52 week low of $150.14 and a 52 week high of $231.80. The business's fifty day simple moving average is $179.43 and its 200-day simple moving average is $176.56.

Booking (NASDAQ:BKNG - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The business services provider reported $2.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.43 by $0.11. The firm had revenue of $7.35 billion during the quarter, compared to the consensus estimate of $7.19 billion. Booking had a negative return on equity of 102.96% and a net margin of 25.53%.The company's quarterly revenue was up 8.1% on a year-over-year basis. During the same period last year, the company earned $55.40 EPS. As a group, equities analysts expect that Booking Holdings Inc. will post 10.43 earnings per share for the current year.

Booking Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 11th will be given a dividend of $0.42 per share. The ex-dividend date is Friday, September 11th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 0.8%. Booking's dividend payout ratio (DPR) is currently 18.58%.

Analysts Set New Price Targets

Several research analysts recently commented on BKNG shares. Barclays set a $210.00 price objective on Booking and gave the company an "overweight" rating in a research note on Wednesday, April 29th. Gordon Haskett increased their target price on shares of Booking from $217.00 to $220.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Wells Fargo & Company set a $220.00 price target on shares of Booking and gave the stock an "equal weight" rating in a research note on Wednesday. Cantor Fitzgerald boosted their price target on shares of Booking from $175.00 to $220.00 and gave the stock a "neutral" rating in a research report on Wednesday. Finally, B. Riley Financial reaffirmed a "buy" rating and set a $274.00 price objective (up from $264.00) on shares of Booking in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $234.69.

Booking Profile

Booking Holdings Inc is a global online travel company that operates a portfolio of consumer brands and technology platforms that facilitate the search for and booking of travel services. The company's businesses focus on accommodations, transportation and related travel services through consumer-facing websites and apps as well as partner distribution channels. Booking Holdings was originally founded as Priceline in the late 1990s and adopted the Booking Holdings name in 2018; it is headquartered in Norwalk, Connecticut.

Its core offerings include online reservations for hotels, vacation rentals and other lodging; flight and car rental search and booking; and ancillary services that support travel planning and on-property experiences.

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