In a recent move, Dara Khosrowshahi, a director at Expedia (NASDAQ:EXPE) Group, Inc. (NASDAQ:EXPE), has sold a significant number of shares in the company. According to the latest filings, Khosrowshahi parted with 10,000 shares of common stock, garnering a total of $1.5 million from the sale.
The transaction, which took place on September 27, 2024, saw the shares sold at a weighted average price of $150.2061, with individual sale prices ranging from $150.00 to $150.33. This information was disclosed in a footnote accompanying the filing, which also mentioned that the sale was conducted in accordance with a Rule 10b5-1 trading plan that Khosrowshahi had adopted on May 22, 2023.
Following the sale, Khosrowshahi still holds a substantial number of shares, with 208,505 shares remaining in his direct ownership. Additionally, there are 21,910 shares held indirectly, which, as per a footnote in the report, are owned by a Children's Trust. Khosrowshahi has disclaimed beneficial ownership of these particular shares.
Investors often keep a close eye on insider transactions as they can provide valuable insights into the company's health and the sentiments of its top executives. Transactions like these are publicly reported to ensure transparency and maintain investor confidence.
The filing was signed on behalf of Khosrowshahi by Michael S. Marron, Attorney-in-fact, on September 30, 2024.
In other recent news, financial services firm BTIG has raised the price target for Expedia Group Inc. from $150 to $175, maintaining a Buy rating, due to the company's strong performance and positive outlook. TD (TSX:TD) Cowen, however, downgraded its stance from "Buy" to "Hold" due to concerns over Expedia's underperforming business-to-consumer sector. Meanwhile, Truist Securities and Cantor Fitzgerald initiated coverage on Expedia with a "Hold" and "Neutral" rating respectively.
Expedia Group's Vice Chairman, Peter Kern, has stepped down from his role and the Board of Directors, with no further details disclosed regarding a replacement. The company's business-to-business segment has been performing well, marking $25 billion in bookings and over $100 million in room nights in 2023.
On the other hand, 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 in the company.
InvestingPro Insights
As Expedia Group's director Dara Khosrowshahi sells a portion of his shares, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a broader perspective on the company's current standing.
According to InvestingPro data, Expedia Group boasts a market capitalization of $19.26 billion, reflecting its significant presence in the online travel industry. The company's revenue for the last twelve months as of Q2 2024 stood at $13.26 billion, with a notable revenue growth of 8.18% over the same period.
One of the InvestingPro Tips highlights that Expedia has been aggressively buying back shares, which could be seen as a sign of confidence in the company's future prospects. This strategy often aims to increase shareholder value, aligning with the interests of investors like Khosrowshahi.
Another InvestingPro Tip points out Expedia's impressive gross profit margins. Indeed, the data shows a robust gross profit margin of 88.9% for the last twelve months as of Q2 2024, underscoring the company's efficiency in generating profit from its core business operations.
It's worth noting that while Khosrowshahi has sold some shares, Expedia's stock has shown strong performance recently. The 3-month price total return stands at 18.33%, and the 1-year return is an impressive 44.65%, suggesting overall positive market sentiment.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 12 more InvestingPro Tips available for Expedia Group, providing a deeper understanding of the company's financial health and market position.
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