Wells Fargo & Company Has Lowered Expectations for Airbnb (NASDAQ:ABNB) Stock Price

Key Points

• Wells Fargo & Company has cut its price target for Airbnb from $111.00 to $110.00, indicating a potential downside of 7.88% from the current stock price and assigning an "underweight" rating.
• Recent reports show mixed sentiment among analysts, with some decreasing their targets significantly, while others, such as BMO Capital Markets, raised their target price to $124.00.
• Despite a quarterly earnings beat, where Airbnb reported $1.03 EPS above expectations, the stock has traded down approximately 8.5% recently, reflecting a challenging market outlook.

Airbnb (NASDAQ:ABNB - Get Free Report) had its price target cut by equities research analysts at Wells Fargo & Company from $111.00 to $110.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an "underweight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential downside of 7.88% from the stock's current price.

ABNB has been the subject of a number of other reports. Susquehanna decreased their price objective on Airbnb from $200.00 to $150.00 and set a "positive" rating for the company in a report on Monday, May 5th. Cantor Fitzgerald reiterated an "underweight" rating and issued a $100.00 target price on shares of Airbnb in a research note on Wednesday, May 14th. Evercore ISI dropped their price target on shares of Airbnb from $165.00 to $145.00 and set an "in-line" rating on the stock in a research report on Friday, May 2nd. BMO Capital Markets boosted their target price on Airbnb from $121.00 to $124.00 and gave the stock a "market perform" rating in a research note on Thursday. Finally, B. Riley decreased their target price on Airbnb from $145.00 to $140.00 and set a "neutral" rating for the company in a research report on Friday, May 2nd. Five investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $141.57.

Airbnb Trading Down 8.5%

NASDAQ ABNB traded down $11.09 during trading on Thursday, reaching $119.42. The company's 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 price of $135.27 and a 200 day moving average price of $131.16. The firm has a market capitalization of $74.80 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 has a 12 month low of $99.88 and a 12 month high of $163.93.

Airbnb (NASDAQ:ABNB - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $1.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.11. The firm had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.02 billion. Airbnb had a return on equity of 30.91% and a net margin of 22.60%. The company's revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.86 earnings per share. On average, equities analysts forecast that Airbnb will post 4.31 EPS for the current fiscal year.

Insider Buying and Selling at Airbnb

In other Airbnb news, CFO Elinor Mertz sold 6,250 shares of the business's stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $132.28, for a total transaction of $826,750.00. Following the sale, the chief financial officer directly owned 467,611 shares in the company, valued at $61,855,583.08. This represents a 1.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Brian Chesky sold 8,000 shares of the company's stock in a transaction on Thursday, May 29th. The stock was sold at an average price of $128.33, for a total value of $1,026,640.00. Following the sale, the chief executive officer directly owned 40,800 shares in the company, valued at $5,235,864. This represents a 16.39% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,671,023 shares of company stock worth $223,195,427 in the last ninety days. 27.91% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ABNB. Harris Associates L P increased its position in shares of Airbnb by 86.0% in the first quarter. Harris Associates L P now owns 9,944,948 shares of the company's stock valued at $1,188,024,000 after buying an additional 4,598,125 shares in the last quarter. Pacer Advisors Inc. boosted its stake in shares of Airbnb by 2,297.4% during the 1st quarter. Pacer Advisors Inc. now owns 2,801,899 shares of the company's stock valued at $334,715,000 after buying an additional 2,685,026 shares during the last quarter. Two Sigma Advisers LP lifted its position in shares of Airbnb by 512.0% during the fourth quarter. Two Sigma Advisers LP now owns 3,080,300 shares of the company's stock worth $404,782,000 after purchasing an additional 2,577,000 shares during the last quarter. AQR Capital Management LLC grew its position in shares of Airbnb by 81.0% in the 1st quarter. AQR Capital Management LLC now owns 4,282,523 shares of the company's stock worth $500,755,000 after acquiring an additional 1,916,676 shares in the last quarter. Finally, Principal Financial Group Inc. raised its holdings in shares of Airbnb by 74.4% during the first quarter. Principal Financial Group Inc. now owns 3,255,682 shares of the company's stock worth $388,924,000 after purchasing an additional 1,389,251 shares during the period. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.