New York Life Investment Management LLC, a prominent institutional investor, recently purchased a new stake in Airbnb, Inc. (NASDAQ:ABNB) during the first quarter of this year. According to the company’s 13F filing with the U.S. Securities and Exchange Commission (SEC), they acquired 1,709 shares of Airbnb’s stock, with an estimated value of approximately $213,000.
This investment move comes at a time when Airbnb has been making significant waves in the market. Just earlier this month, on August 3rd, Airbnb announced its earnings results for the quarter. The company reported earnings per share (EPS) of $0.98 for the quarter, surpassing the consensus estimate of $0.77 by an impressive margin of $0.21.
In terms of revenue, Airbnb recorded $2.48 billion for the quarter, exceeding analyst estimates that projected it would be around $2.42 billion. This figure represents an 18.1% increase in revenue compared to the same period last year. These positive financial results highlight Airbnb’s strong performance and continued growth as a leading player in the travel and accommodation industry.
Airbnb’s ability to generate such substantial revenue is even more notable when considering its return on equity of 42.90%. This indicates that the company has been effectively generating profits relative to shareholders’ investments.
Additionally, Airbnb achieved a net margin of 25.31%, indicating its ability to generate profit after expenses are deducted from revenue. This healthy net margin showcases Airbnb’s efficiency in managing costs and maximizing profitability.
These latest developments demonstrate Airbnb’s resilience and adaptability amid challenging economic conditions caused by global events such as the COVID-19 pandemic. Despite facing unprecedented challenges within the travel industry during these times, Airbnb has managed to navigate through successfully while delivering strong financial results.
Looking ahead, sell-side analysts remain optimistic about Airbnb’s future prospects. They anticipate that for the current fiscal year, Airbnb, Inc. will post earnings per share of 3.66.
New York Life Investment Management LLC’s decision to invest in Airbnb at this time reflects the confidence they have in the company’s ability to deliver consistent profitability and long-term growth. With its strong financial performance and positive market outlook, Airbnb continues to solidify its position as a dominant force in the travel and accommodation sector.
DISCLAIMER: This article is for informational purposes only. It should not be taken as financial advice or a recommendation to invest in any particular company or stock.
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Airbnb: Holdings Changes, Analyst Ratings, and Executive Share Sales
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”ABNB” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]August 20, 2023 – &Other hedge funds have recently made significant changes to their holdings of Airbnb, a popular vacation rental platform. Level Financial Advisors Inc. increased its position in Airbnb by 100.0% during the first quarter, now owning 200 shares valued at $25,000 after acquiring an additional 100 shares during the same period. JNBA Financial Advisors and Key Financial Inc also bought new stakes in Airbnb during the first quarter, both worth approximately $25,000. Macroview Investment Management LLC followed suit by increasing its position in Airbnb by 76.0% during the first quarter, bringing its total ownership to 220 shares valued at $27,000 after acquiring an additional 95 shares. Northwest Investment Counselors LLC had the most significant increase in ownership by lifting its position in Airbnb by a whopping 800.0% during the first quarter. The firm now owns 225 shares valued at $28,000 after acquiring an additional 200 shares. Institutional investors currently hold a staggering 41.62% stake in the company.
Several equities analysts have recently provided reports on Airbnb as well. Evercore ISI issued a report indicating that they increased their target price for Airbnb from $145.00 to $168.00 on August 4th. The Goldman Sachs Group also adjusted their target price from $97.00 to $117.00 and gave Airbnb a “sell” rating on the same day, August 4th.
Mizuho released a report on July 31st raising their price target for Airbnb from $125.00 to $145.00 and giving it a “neutral” rating while TheStreet downgraded Airbnb’s rating from “c” to “d+” on May 11th.
Argus decided to raise their price target for Airbnb from $124.00 to $168 and rated it as a “buy” prospect on July19th. Overall, four analysts have rated Airbnb’s stock as a sell, thirteen have given it a hold rating, and seventeen analysts have deemed it a buy. According to Bloomberg data, the stock currently has an average rating of “Hold,” with an average price target of $144.50.
On another note, Director Joseph Gebbia conducted a transaction on May 31st where he sold 350,000 shares of Airbnb at an average price of $105.83 per share, bringing the total transaction value to $37,040,500. Following this sale, Gebbia now owns 4,066,769 shares in the company valued at $430,386,163.27.
CEO Brian Chesky also conducted a stock sale on June 1st by selling 30,000 shares at an average price of $111.97 per share for a total value of $3,359,100. After this transaction, Chesky holds approximately 17,363,931 shares valued at around $1,944,239,354.07.
Notably throughout the last quarter alone, insiders have sold approximately 2,271,998 shares of Airbnb’s stock worth approximately $298 million. Currently company insiders own roughly 30.84% of the company’s stock.
As of Friday’s opening bell on August 20th., ABNB stock traded at $125.06. The fifty-two week range for Airbnb’s stock is between $81.91 and $154.95 while its market capitalization stands at $80.95 billion.
Airbnb has a price-to-earnings (P/E) ratio of 36.46 and a price/earnings-to-growth (P/E/G) ratio of 1.72 with a beta indicating slightly higher volatility compared to the market benchmark at 1.26.The business maintains a debt-to-equity ratio is 0.39 while having liquidity ratios of 1.47 for both quick and current ratios respectively. The company’s average price over the past 50 days sits at $135.69, while its 200-day moving average is slightly lower at $123.85.
In conclusion, Airbnb has seen significant activity in terms of holdings modifications by hedge funds and institutional investors during the first quarter of the year. A multitude of analysts have offered mixed ratings for the stock with varied target prices, resulting in an average rating of “Hold.” Notably, high-level executives within Airbnb have conducted substantial share sales recently. Currently trading at $125.06, with a solid market capitalization of $80.95 billion, Airbnb continues to be a prominent player in the vacation rental industry despite fluctuations in its stock price throughout the year.
