In a recent transaction, Dara Khosrowshahi, a director at Expedia (NASDAQ:EXPE) Group, Inc. (NASDAQ:EXPE), sold 10,000 shares of the company's common stock. The sale, which took place on October 4, 2024, amounted to a total of $1.5 million, with individual share prices ranging from $150.00 to $150.24.
The transaction was conducted under a Rule 10b5-1 trading plan, which Khosrowshahi had adopted on May 22, 2023. Such plans allow company insiders to sell shares at predetermined times to avoid accusations of trading on non-public information. The weighted average sale price for the shares was $150.1788.
Following the sale, Khosrowshahi still holds a significant amount of Expedia stock, owning 198,505 shares directly. Additionally, he is associated with a holding of 21,910 shares owned by a Children's Trust, over which he disclaims beneficial ownership, as per the regulatory filing.
Investors often monitor insider transactions for insights into a company's performance and the confidence levels of its executives. The sale by Khosrowshahi represents a notable move by a key figure within Expedia, a leading travel services company.
Expedia Group, Inc., headquartered in Seattle, Washington, operates within the transportation services sector and has been a prominent player in the online travel booking industry.
For those interested in the detailed figures of the transaction, Khosrowshahi has made it known that he will provide information regarding the number of shares sold at each price within the range upon request from the issuer, any security holder of the issuer, or the SEC staff.
In other recent news, Expedia Group has been the focus of several analyst notes. BTIG raised the company's share target to $175 based on robust performance and a positive outlook, maintaining a Buy rating. TD Cowen, however, downgraded Expedia from "Buy" to "Hold" due to concerns over the underperforming business-to-consumer sector. Truist Securities and Cantor Fitzgerald initiated coverage with a "Hold" and "Neutral" rating respectively, while B.Riley sustained its "Buy" rating, expressing optimism for the company's business-to-business offerings.
In terms of leadership, Expedia's Vice Chairman, Peter Kern, has stepped down from his role and the Board of Directors. Furthermore, the company's One Key loyalty program, which aimed to tie together Expedia, Hotels.com, and Vrbo in the US, has been paused internationally for reevaluation.
On the earnings front, 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. These recent developments highlight the ongoing changes within Expedia Group as it navigates the complex dynamics of the travel industry.
InvestingPro Insights
To complement the information about Dara Khosrowshahi's recent stock sale, let's delve into some key financial metrics and insights for Expedia Group, Inc. (NASDAQ:EXPE) provided by InvestingPro.
Expedia's market capitalization stands at $19.67 billion, reflecting its significant presence in the online travel industry. The company's financial performance has been robust, with a revenue of $13.26 billion over the last twelve months as of Q2 2024, showing a growth of 8.18% during this period.
One of the standout metrics is Expedia's impressive gross profit margin of 88.9%, which aligns with an InvestingPro Tip highlighting the company's "impressive gross profit margins." This high margin suggests that Expedia maintains strong pricing power and efficiency in its core operations.
Another noteworthy InvestingPro Tip indicates that "management has been aggressively buying back shares." This strategy often signals management's confidence in the company's value and can potentially boost earnings per share for remaining stockholders.
Despite these positive indicators, investors should be aware that Expedia is "trading at a high P/E ratio relative to near-term earnings growth," with a current P/E ratio of 25.49. This valuation metric suggests that the stock may be priced at a premium compared to its immediate growth prospects.
It's worth noting that Expedia has shown strong recent performance in the market, with a 13.96% price return over the last month and a 21.93% return over the last three months. This aligns with another InvestingPro Tip highlighting the company's "strong return over the last three months."
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Expedia, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.