Airbnb (NASDAQ:ABNB) Shares Gap Up on Better-Than-Expected Earnings

Airbnb, Inc. (NASDAQ:ABNB)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $141.04, but opened at $158.19. Airbnb shares last traded at $161.51, with a volume of 8,103,185 shares trading hands.

The company reported $0.73 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.12. Airbnb had a net margin of 16.96% and a return on equity of 32.88%.

Analyst Ratings Changes

Several analysts have recently issued reports on ABNB shares. UBS Group upped their target price on shares of Airbnb from $134.00 to $144.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 23rd. Piper Sandler upped their target price on shares of Airbnb from $125.00 to $145.00 and gave the stock a “neutral” rating in a research note on Friday, November 8th. Barclays upped their target price on shares of Airbnb from $110.00 to $120.00 and gave the stock an “underweight” rating in a research note on Friday. Robert W. Baird upgraded shares of Airbnb from a “neutral” rating to an “outperform” rating and upped their target price for the stock from $140.00 to $175.00 in a research note on Friday. Finally, Phillip Securities reiterated a “reduce” rating and issued a $120.00 target price on shares of Airbnb in a research note on Tuesday, November 12th. Five analysts have rated the stock with a sell rating, twenty have assigned a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $144.91.

Insider Transactions at Airbnb

In related news, CTO Aristotle N. Balogh sold 500 shares of the firm’s stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $136.01, for a total value of $68,005.00. Following the sale, the chief technology officer now directly owns 185,414 shares of the company’s stock, valued at $25,218,158.14. This trade represents a 0.27 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Nathan Blecharczyk sold 9,603 shares of the firm’s stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $130.22, for a total transaction of $1,250,502.66. Following the completion of the sale, the insider now directly owns 164,850 shares in the company, valued at $21,466,767. This represents a 5.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,417,704 shares of company stock valued at $187,654,829. 27.83% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Airbnb

A number of institutional investors and hedge funds have recently bought and sold shares of ABNB. Edgewood Management LLC grew its position in Airbnb by 9.2% during the third quarter. Edgewood Management LLC now owns 13,582,433 shares of the company’s stock valued at $1,722,388,000 after acquiring an additional 1,143,464 shares during the last quarter. Geode Capital Management LLC grew its position in Airbnb by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 9,472,559 shares of the company’s stock valued at $1,244,514,000 after acquiring an additional 72,991 shares during the last quarter. Clearbridge Investments LLC grew its position in Airbnb by 147.3% during the fourth quarter. Clearbridge Investments LLC now owns 4,349,026 shares of the company’s stock valued at $571,505,000 after acquiring an additional 2,590,475 shares during the last quarter. Pacer Advisors Inc. grew its position in Airbnb by 6,085.6% during the third quarter. Pacer Advisors Inc. now owns 4,241,557 shares of the company’s stock valued at $537,872,000 after acquiring an additional 4,172,985 shares during the last quarter. Finally, Renaissance Technologies LLC grew its position in Airbnb by 15.5% during the fourth quarter. Renaissance Technologies LLC now owns 4,175,351 shares of the company’s stock valued at $548,683,000 after acquiring an additional 558,856 shares during the last quarter. 80.76% of the stock is owned by hedge funds and other institutional investors.

Airbnb Price Performance

The company has a quick ratio of 1.62, a current ratio of 1.62 and a debt-to-equity ratio of 0.23. The business’s 50-day simple moving average is $133.00 and its 200 day simple moving average is $130.02. The firm has a market capitalization of $102.74 billion, a P/E ratio of 56.66, a PEG ratio of 1.88 and a beta of 1.12.

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.