Airbnb (NASDAQ: ABNB) Stock Price Expected to Rise, Barclays Analyst Says

Airbnb (NASDAQ: ABNB) saw its target price increased by analysts at Barclays from $100.00 to $110.00 in a report released to investors on Friday. Despite this upward adjustment, Barclays has given the company an "underweight" rating, suggesting that the stock might not perform well in comparison to its peers. The new price target implies a potential downside of 19.04% from Airbnb's current stock price.

Several other financial firms have also updated their views on Airbnb. For instance, Wells Fargo & Company raised their target price from $100.00 to $102.00 while maintaining an "underweight" rating. Meanwhile, the Royal Bank of Canada lowered its target from $150.00 to $120.00 with a "sector perform" stance. JPMorgan Chase increased its target price from $121.00 to $142.00, assigning a "neutral" rating. Conversely, TD Cowen boosted its target on Airbnb from $150.00 to $155.00 with a "buy" rating. Additionally, The Goldman Sachs Group adjusted its target price down from $130.00 to $111.00, suggesting a "sell" rating in their report.

Among the analysts tracking Airbnb, there have been mixed feelings. Currently, five research analysts rate the stock as a "sell," while nineteen have given it a "hold" rating, and eight analysts have issued a "buy" recommendation. Collectively, these ratings reflect a market consensus that leans towards holding the stock, with an average target price estimated at $139.26 according to MarketBeat data.

Current Stock Performance

As of last Friday, Airbnb's stock experienced a decline, dropping 7.8% to reach $135.87. This trading session saw a substantial 13,498,142 shares changing hands, surpassing its average volume of 4,462,595 shares. Over the past year, the stock has fluctuated between a low of $110.38 and a high of $170.10. In terms of financial metrics, Airbnb has maintained a debt-to-equity ratio of 0.25 and reported a market capitalization of $87.18 billion, with a price-to-earnings ratio of 18.49.

Looking at recent earnings announcements, Airbnb reported earnings of $0.86 per share for the quarter ending August 6, missing analysts' expectations of $0.92. This performance still revealed a net margin of 46.11% and a solid return on equity of 34.74%. The total revenue for the quarter was approximately $2.75 billion, slightly above the forecast of $2.74 billion. Compared to the same period last year, revenue has grown by 10.6%.

Insider Transactions

In related news, Airbnb's Chief Technology Officer, Aristotle N. Balogh, sold 600 shares of the company's stock at an average price of $118.94, totaling $71,364. This recent transaction brought his total holdings to 198,244 shares, valued at about $23,579,141.36. Furthermore, CEO Brian Chesky sold 230,769 shares on September 17, fetching $27,692,280. Following his sale, Chesky holds 13,315,912 shares of the company, which are valued around $1,597,909,440. The company’s insiders have collectively sold 417,806 shares valued approximately at $51,809,831 in the past three months. Notably, insiders control 27.83% of Airbnb's stock.

Hedge Fund Activity

In terms of institutional investments, several hedge funds have increased their stakes in Airbnb. For example, Prospera Private Wealth LLC raised its position by 30.9%, acquiring additional shares to own 1,832 shares now worth $232,000. Similarly, Avior Wealth Management LLC increased its ownership by 20.3%, and Parnassus Investments LLC raised its stake by a significant 67.2%. Overall, institutional investors and hedge funds currently own an impressive 80.76% of Airbnb’s stock.

About Airbnb

Airbnb, Inc. operates a platform that connects hosts and guests to facilitate bookings for stays and experiences across the globe. It primarily offers private rooms, primary homes, and vacation rentals, enabling hosts to share their spaces and guests to explore diverse lodging options.

stock, Airbnb, Barclays