On October 9, 2023, Aristotle Balogh, the Chief Technology Officer of Airbnb Inc (ABNB, Financial), sold 2,750 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 152,750 shares and purchased none.
Aristotle Balogh is a key figure in Airbnb Inc, a company that operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities. The company is based in San Francisco, California, and operates accessibly in approximately 220 countries and regions around the world. Balogh, as the CTO, plays a crucial role in maintaining and improving the technological infrastructure that allows Airbnb to operate smoothly and efficiently.
The insider's recent sell-off is part of a broader trend within Airbnb Inc. Over the past year, there have been 92 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Airbnb Inc were trading at $124 each, giving the company a market cap of $82.95 billion. The price-earnings ratio of the stock is 37.90, which is higher than the industry median of 18.86 but lower than the company’s historical median price-earnings ratio.
Despite the insider's sell-off, the stock appears to be significantly undervalued based on its GuruFocus Value. With a price of $124 and a GuruFocus Value of $233.75, Airbnb Inc has a price-to-GF-Value ratio of 0.53. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts. The GF Value is illustrated in the following image:
The insider's sell-off, combined with the stock's undervaluation, suggests that potential investors should keep a close eye on Airbnb Inc. While the insider's actions may raise some concerns, the stock's significant undervaluation could present a buying opportunity for those who believe in the company's long-term prospects.
As always, potential investors should conduct their own research and consider their financial situation and risk tolerance before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
