Dara Khosrowshahi, a director at Expedia (NASDAQ:EXPE) Group, Inc. (NASDAQ:EXPE), recently sold a significant portion of his holdings in the company. According to a regulatory filing, Khosrowshahi sold a total of 10,000 shares of common stock on November 1, 2024. The shares were sold at prices ranging from $156.76 to $157.33, resulting in a total transaction value of approximately $1.57 million.
Following these sales, Khosrowshahi holds 188,505 shares directly. Additionally, he holds 21,910 shares indirectly through a children's trust, for which he disclaims beneficial ownership.
The sales were executed under a pre-arranged trading plan, as part of a Rule 10b5-1 plan adopted by Khosrowshahi in May 2023.
In other recent news, Expedia Group has experienced significant developments. The company's business-to-business segment marked $25 billion in bookings and over $100 million in room nights in 2023. However, TD Cowen downgraded Expedia's stock from "Buy" to "Hold" due to concerns about the underperforming business-to-consumer sector. Meanwhile, BTIG has reaffirmed its Buy rating on Uber Technologies Inc . (NYSE:UBER), amid rumors of a potential acquisition of Expedia Group. The likelihood of Uber pursuing Expedia is generally considered low, but the speculation has sparked discussions about Uber's aspirations to become a Super App. Additionally, Peter Kern, Vice Chairman of Expedia, has stepped down from his role and the Board of Directors. Lastly, Expedia's One Key loyalty program, which aimed to tie together Expedia, Hotels.com, and Vrbo in the US, has been paused internationally for reevaluation. These are some of the recent developments within the company.
InvestingPro Insights
Expedia Group's recent stock performance and financial metrics provide additional context to Director Dara Khosrowshahi's recent share sale. According to InvestingPro data, Expedia's stock has shown strong momentum, with a 38.21% price return over the past six months and is currently trading near its 52-week high at 97.67% of that peak.
The company's financial health appears robust, with a market capitalization of $20.93 billion and impressive gross profit margins of 88.9% for the last twelve months as of Q2 2023. This aligns with one of the InvestingPro Tips, which highlights Expedia's "impressive gross profit margins."
Another relevant InvestingPro Tip notes that "management has been aggressively buying back shares," which is interesting in light of Khosrowshahi's recent sale. This could suggest that while individual directors may be taking profits, the company overall maintains confidence in its stock value.
It's worth noting that Expedia is trading at a P/E ratio of 27.3, which some investors might consider high. This corresponds with another InvestingPro Tip indicating that the company is "trading at a high P/E ratio relative to near-term earnings growth."
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Expedia Group, providing a deeper dive into the company's financial position and market performance.
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