Morgan Stanley Cuts Airbnb (NASDAQ:ABNB) Price Target to $120.00

Key Points

• Morgan Stanley has reduced Airbnb's price target from $130.00 to $120.00, maintaining an "underweight" rating on the stock which currently suggests a potential upside of 0.57%.
• Other analysts, including Truist Financial and Wells Fargo, have also issued lower price targets and ratings for Airbnb, reflecting a generally negative sentiment about the stock.
• Airbnb's shares recently traded down 8.6%, with a current price of $119.32, amid mixed reviews on their quarterly earnings performance and insights on future earnings potential.

Airbnb (NASDAQ:ABNB - Get Free Report) had its target price lowered by stock analysts at Morgan Stanley from $130.00 to $120.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an "underweight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 0.57% from the company's current price.

Several other equities research analysts have also commented on ABNB. Truist Financial restated a "sell" rating and set a $106.00 target price (down previously from $112.00) on shares of Airbnb in a research report on Friday, May 30th. Royal Bank Of Canada upped their target price on shares of Airbnb from $140.00 to $145.00 and gave the stock a "sector perform" rating in a report on Thursday. Phillip Securities downgraded shares of Airbnb from a "hold" rating to a "moderate sell" rating in a report on Friday, May 9th. Barclays set a $105.00 target price on Airbnb and gave the stock an "underweight" rating in a research note on Thursday. Finally, Wells Fargo & Company reduced their price target on shares of Airbnb from $111.00 to $110.00 and set an "underweight" rating for the company in a research report on Thursday. Five investment analysts have rated the stock with a sell rating, seventeen have issued a hold rating, thirteen have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, Airbnb presently has an average rating of "Hold" and an average price target of $141.57.

Airbnb Trading Down 8.6%

ABNB traded down $11.18 on Thursday, reaching $119.32. The stock had a trading volume of 8,568,077 shares, compared to its average volume of 5,255,563. The firm has a 50-day moving average of $135.27 and a 200-day moving average of $131.16. Airbnb has a fifty-two week low of $99.88 and a fifty-two week high of $163.93. The company has a market capitalization of $74.75 billion, a price-to-earnings ratio of 30.16, a price-to-earnings-growth ratio of 2.42 and a beta of 1.13.

Airbnb (NASDAQ:ABNB - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $1.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.92 by $0.11. Airbnb had a return on equity of 30.91% and a net margin of 22.60%. The business had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.02 billion. During the same period in the prior year, the business posted $0.86 earnings per share. Airbnb's quarterly revenue was up 12.7% on a year-over-year basis. Sell-side analysts anticipate that Airbnb will post 4.31 EPS for the current fiscal year.

Insider Buying and Selling

In other Airbnb news, CFO Elinor Mertz sold 6,250 shares of the stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $132.28, for a total value of $826,750.00. Following the transaction, the chief financial officer owned 467,611 shares of the company's stock, valued at approximately $61,855,583.08. This represents a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph Gebbia sold 236,000 shares of the firm's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $139.40, for a total transaction of $32,898,400.00. Following the sale, the director owned 1,180,015 shares in the company, valued at $164,494,091. The trade was a 16.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,671,023 shares of company stock valued at $223,195,427 over the last three months. Corporate insiders own 27.91% of the company's stock.

Institutional Investors Weigh In On Airbnb

Several large investors have recently added to or reduced their stakes in ABNB. Quadrant Capital Group LLC raised its holdings in Airbnb by 11.3% in the fourth quarter. Quadrant Capital Group LLC now owns 1,003 shares of the company's stock worth $132,000 after purchasing an additional 102 shares in the last quarter. DRW Securities LLC purchased a new stake in Airbnb in the fourth quarter valued at approximately $257,000. Colonial Trust Advisors increased its stake in shares of Airbnb by 652.2% in the fourth quarter. Colonial Trust Advisors now owns 519 shares of the company's stock worth $68,000 after acquiring an additional 450 shares during the period. Neuberger Berman Group LLC raised its stake in shares of Airbnb by 13.1% during the 4th quarter. Neuberger Berman Group LLC now owns 10,379 shares of the company's stock valued at $1,364,000 after buying an additional 1,203 shares during the last quarter. Finally, Treasurer of the State of North Carolina boosted its stake in shares of Airbnb by 0.6% in the fourth quarter. Treasurer of the State of North Carolina now owns 192,277 shares of the company's stock worth $25,267,000 after buying an additional 1,210 shares during the last quarter. 80.76% of the stock is owned by institutional investors.

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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