SEATTLE - Expedia (NASDAQ:EXPE) Group, Inc. (NASDAQ:EXPE), a leader in the online travel industry, announced the results of its 2024 Annual Meeting of Stockholders held on Monday, where all proposed items were passed, including the election of directors and executive compensation.
The meeting saw the election of 13 individuals to the company's Board of Directors. Four directors, designated as Common Stock Nominees, were elected solely by holders of the company’s common stock, while nine directors, known as Combined Stock Nominees, were elected by holders of both common stock and Class B common stock voting together. The elected directors will serve until the next annual meeting or until their successors are elected and qualified.
Stockholders also gave a nod to the company's executive compensation plan with a majority advisory vote. The detailed compensation plan for named executive officers was outlined in the proxy statement previously filed with the SEC.
Additionally, the appointment of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified by stockholders.
The quorum for the meeting was achieved with a significant turnout. Holders of 108,691,464 shares of the company’s common stock and 5,523,452 shares of the company’s Class B common stock were represented in person or by proxy, which amounted to an aggregate voting power of 163,925,984 votes.
In other recent news, Expedia Group has been making significant strides in its operations. A key development is the launch of an AI-powered travel assistant named Romie, aimed at enhancing the customer experience. This introduction is part of a broader industry trend where online travel agencies are integrating artificial intelligence to offer personalized services.
Simultaneously, the company is expanding into new business areas, including the launch of the Retail Media Network and the integration of social content through Travel Shops. These moves are designed to tap into the growing trend of retail media spending and influencer marketing.
Analysts have provided varying outlooks on the company. BMO Capital Markets and Barclays have maintained a "Market Perform" and "Equal Weight" rating on Expedia, respectively, with price targets set at $145.00 and $138.00. Meanwhile, BTIG reaffirms a 'Buy' rating on the stock, emphasizing the strong growth potential of Expedia's Business-to-Business (B2B) segment.
On the other hand, DA Davidson and TD Cowen have lowered their price targets for Expedia to $135.00 and $130.00, respectively, following the company's first-quarter 2024 earnings report and an unexpected reduction in the company's full-year guidance.
InvestingPro Insights
In light of Expedia Group, Inc.'s recent annual meeting, shareholders may find the following InvestingPro Insights particularly relevant. The company's aggressive share buyback strategy and high shareholder yield are indications of management's confidence in the company's value. These actions often signal a bullish outlook from the company's leadership, suggesting they believe the stock is undervalized.
Additionally, Expedia's impressive gross profit margins, which stand at a robust 88.39% for the last twelve months as of Q1 2024, highlight the company's efficiency in retaining revenue after the cost of goods sold. This metric is essential for investors to consider as it reflects the company's potential for sustainable growth and profitability.
Despite 19 analysts revising their earnings downwards for the upcoming period, the stock has demonstrated a strong return over the last month with a 15.46% increase. This could suggest a market sentiment that is more positive than the analysts' forecasts. Moreover, with a P/E ratio of 21.82 and an adjusted P/E ratio of 13.56 for the last twelve months as of Q1 2024, the company is trading at a low multiple relative to near-term earnings growth, which might appeal to value investors.
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