By Levi Sumagaysay
Stock trading lower than first day of trading as insiders receive right to sell shares
Airbnb Inc.'s stock fell sharply Monday as the company's post-IPO lockup expired, meaning insiders can now sell shares.
Before this lockup expiration, about 40% of shares held by Airbnb (ABNB) insiders had already been unlocked, analysts from Susquehanna International Group said in a note to investors.
Airbnb shares were down more than 6% in Monday trading, hovering around $132.10. That's about 8.7% lower than the closing price of $144.71 on IPO day. The company's stock is off 9% year to date and has fallen about 34% in the past three months. Meanwhile, the S&P 500 index is seeing a more than 10% increase so far this year.
The lodging-booking platform went public in December (), several months after it lost about 80% of its business during the early days of the COVID-19 pandemic that wiped out travel around much of the world. Since then, though, the San Francisco-based company has recovered as its customers booked stays closer to home, or long-term rentals for working remotely. Last week, Airbnb reported first-quarter results ( ) that included sales and booking growth, and Chief Executive Brian Chesky said he expected a rebound "unlike anything we've seen before."
Out of 26 analysts surveyed by FactSet, 11 have a buy rating on Airbnb stock, 13 say hold, one rates it a sell, and one considers it overweight. The average price target Monday was $166.04.
-Levi Sumagaysay; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 17, 2021 14:04 ET (18:04 GMT)
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