Sanford C. Bernstein Lowers Airbnb Price Target to $162.00

Sanford C. Bernstein has revised its price target for Airbnb, Inc. (NASDAQ: ABNB) from $165.00 to $162.00, while maintaining an “outperform” rating on the stock. This adjustment comes in a report released on Tuesday, according to MarketBeat. The update reflects a trend among various research firms that have recently evaluated Airbnb’s stock performance.

Wells Fargo & Company raised its target price on Airbnb from $111.00 to $118.00 but assigned an “underweight” rating in a note published on December 1, 2023. Meanwhile, Weiss Ratings reaffirmed a “hold (c)” rating on Airbnb shares on October 8, 2023. In contrast, Wedbush increased its price objective for the company from $130.00 to $135.00 while giving the stock a “neutral” rating on December 19, 2023. Royal Bank of Canada upgraded Airbnb from a “sector perform” rating to an “outperform” rating, adjusting their target price for the stock from $145.00 to $170.00 on December 17, 2023. BNP Paribas Exane began coverage of Airbnb with a “neutral” rating on November 24, 2023.

Investor sentiment appears mixed, with three analysts rating the stock as a Strong Buy, twelve assigning a Buy rating, twenty issuing a Hold rating, and four categorizing it as a Sell. MarketBeat reports a consensus rating of “Hold” and a target price averaging $146.00.

Financial Performance and Earnings Report

Airbnb’s recent earnings report, released on November 6, 2023, showed a quarterly earnings per share (EPS) of $2.21, falling short of the consensus estimate of $2.31 by $0.10. The company reported a net margin of 22.03% and a return on equity of 32.14%, with total revenue of $4.10 billion, slightly exceeding analyst expectations of $4.08 billion. Compared to the same quarter last year, Airbnb’s revenue increased by 9.9%, up from an EPS of $2.13.

Looking ahead, analysts predict that Airbnb will achieve an EPS of $4.31 for the current fiscal year.

Insider Transactions and Institutional Investments

In recent insider trading activities, Chief Technology Officer Aristotle N. Balogh sold 2,565 shares on December 19, 2023, at an average price of $134.79, resulting in a total transaction worth $345,736.35. Following this sale, Balogh’s remaining shares are valued at approximately $22.25 million. This sale represented a 1.53% reduction in his ownership stake.

Additionally, Director Joseph Gebbia sold 58,000 shares on December 29, 2023, for an average price of $136.70, totaling approximately $7.93 million. After this transaction, Gebbia holds 576,015 shares worth about $78.74 million, marking a 9.15% decrease in his ownership.

Over the last quarter, insiders have sold a total of 1,579,756 shares, valued at $193.55 million. Currently, insiders own 27.91% of Airbnb’s outstanding shares.

Recent activity among institutional investors has also been notable. True Wealth Design LLC increased its stake in Airbnb by 30.9% in the fourth quarter, now holding 1,514 shares valued at $205,000. Similarly, Wealth Enhancement Advisory Services LLC raised its position by 37.6%, owning 108,607 shares worth $15.02 million after acquiring an additional 29,663 shares.

Other firms, including NorthCrest Asset Management LLC and Hutchens & Kramer Investment Management Group LLC, have also increased their holdings or established new positions in Airbnb. Currently, institutional investors and hedge funds own 80.76% of the company’s stock.

Airbnb, Inc. operates a global online marketplace connecting travelers with hosts offering short-term lodging and unique accommodations. The platform allows individual and professional property managers to list various types of properties, while providing essential services like search, booking, and payment processing. Beyond accommodations, Airbnb has expanded its offerings to include curated experiences and programs aimed at enhancing quality and safety.