Brian Chesky, CEO and Chairman of Airbnb, Inc. (NASDAQ:ABNB), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the SEC, Chesky sold a total of 38,461 shares of Class A Common Stock on December 9, 2024. The shares were sold at prices ranging from $136.59 to $138.80, with the total transaction valued at approximately $5.3 million. The sale comes as Airbnb, currently valued at $86.5 billion, maintains strong financial health according to InvestingPro analysis, with impressive gross profit margins of 83%.
Following these transactions, Chesky retains direct ownership of 12,577,839 shares. Additionally, he holds indirect ownership through trusts, including 16,800 shares by the 2019 Trust and 114,354 shares by the 2016 Legacy Trust B. The sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks in accordance with insider trading laws. InvestingPro subscribers have access to 13 additional key insights about Airbnb's valuation and financial health, along with a comprehensive Pro Research Report that provides deep analysis of the company's fundamentals and future prospects.
In other recent news, Airbnb has experienced several notable developments. Truist Securities adjusted their price target for Airbnb to $123 while maintaining a Hold rating. Despite this, the company's strong financial health score remains unchanged. The firm's analyst has updated the adjusted EBITDA forecast for 2024 to $3.926 billion, a slight increase from the prior estimate of $3.877 billion. However, the earnings per share (EPS) estimate for the same year has been reduced to $3.92 from the earlier projection of $4.22.
DA Davidson set a new price target for Airbnb at $131.00, reflecting a broader re-rating in the large-cap technology sector. This adjustment comes after Airbnb's third quarter of 2024 results surpassed expectations, with revenues coming in at $3,732 million, a 10% increase year-over-year. Meanwhile, PhillipCapital downgraded Airbnb's stock from Neutral to Reduce, citing concerns about Airbnb's valuation premium. Despite the downgrade, the firm has slightly increased its revenue and adjusted profit after tax and minority interests estimates for the fiscal year 2024 by 1%.
Evercore ISI maintained its "In Line" rating for Airbnb, based on positive October data from AirDNA, a short-term rental analytics company. Susquehanna also maintained a Positive rating on Airbnb, raising its price target to $160 from the previous $130. The firm's analysis indicates a slight increase in the expected EBITDA and EPS for 2024, and a modest 1% increase in the 2025 revenue estimates. These are the recent developments for Airbnb.
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