Airbnb Inc. [NASDAQ: ABNB] loss -1.50% or -2.69 points to close at $176.16 with a heavy trading volume of 4830414 shares. The company report on March 4, 2021 that Airbnb, Inc. Prices $2 Billion Convertible Senior Notes Offering.
Airbnb, Inc. (Nasdaq: ABNB) announced the pricing of its offering of $2,000,000,000 aggregate principal amount of 0% convertible senior notes due 2026 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The issuance and sale of the notes are scheduled to settle on March 8, 2021, subject to customary closing conditions.
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The notes will be senior, unsecured obligations of Airbnb. The notes will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on March 15, 2026, unless earlier repurchased, redeemed or converted. Before December 15, 2025, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and after December 15, 2025, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Airbnb will settle conversions by paying or delivering, as applicable, cash, shares of its Class A common stock or a combination of cash and shares of its Class A common stock, at Airbnb’s election. The initial conversion rate is 3.4645 shares of Class A common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $288.64 per share of Class A common stock. The initial conversion price represents a premium of approximately 60.0% over the last reported sale price of $180.40 per share of Airbnb’s Class A common stock on March 3, 2021. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
If we look at the average trading volume of 6.23M shares, ABNB reached to a volume of 4830414 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Airbnb Inc. [ABNB]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ABNB shares is $185.84 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ABNB stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for Airbnb Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 10, 2021. While these analysts kept the previous recommendation, Canaccord Genuity raised their target price from $175 to $270. The new note on the price target was released on February 26, 2021, representing the official price target for Airbnb Inc. stock. Previously, the target price had yet another raise from $150 to $240, while Loop Capital kept a Buy rating on ABNB stock.
The Average True Range (ATR) for Airbnb Inc. is set at 12.59, with the Price to Sales ratio for ABNB stock in the period of the last 12 months amounting to 30.78. The Price to Book ratio for the last quarter was 17.27, with the Price to Cash per share for the same quarter was set at 10.83.
Trading performance analysis for ABNB stock
Airbnb Inc. [ABNB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.99.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ABNB stock in for the last two-week period is set at 41.04, with the RSI for the last a single of trading hit 34.54, and the three-weeks RSI is set at 44.98 for Airbnb Inc. [ABNB]. The present Moving Average for the last 50 days of trading for this stock 190.68, while it was recorded at 186.31 for the last single week of trading.
Airbnb Inc. [ABNB]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Airbnb Inc. [ABNB] shares currently have an operating margin of -101.79 and a Gross Margin at +74.07. Airbnb Inc.’s Net Margin is presently recorded at -135.71.
Return on Total Capital for ABNB is now -85.35, given the latest momentum, and Return on Invested Capital for the company is -115.29. Return on Equity for this stock declined to -437.87, with Return on Assets sitting at -48.77. When it comes to the capital structure of this company, Airbnb Inc. [ABNB] has a Total Debt to Total Equity ratio set at 79.71. Additionally, ABNB Total Debt to Total Capital is recorded at 44.36, with Total Debt to Total Assets ending up at 22.05. Long-Term Debt to Equity for the company is recorded at 77.42, with the Long-Term Debt to Total Capital now at 43.08.
Reflecting on the efficiency of the workforce at the company, Airbnb Inc. [ABNB] managed to generate an average of -$819,138 per employee. Receivables Turnover for the company is 21.16 with a Total Asset Turnover recorded at a value of 0.36.Airbnb Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.70.
An analysis of insider ownership at Airbnb Inc. [ABNB]
There are presently around $14,096 million, or 65.10% of ABNB stock, in the hands of institutional investors. The top three institutional holders of ABNB stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 11,232,400, which is approximately New of the company’s market cap and around 11.40% of the total institutional ownership; FMR LLC, holding 5,769,377 shares of the stock with an approximate value of $1.02 billion in ABNB stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $855.34 million in ABNB stock with ownership of nearly New of the company’s market capitalization.
Positions in Airbnb Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 388 institutional holders increased their position in Airbnb Inc. [NASDAQ:ABNB] by around 80,020,107 shares. Additionally, 0 investors decreased positions by around 0 shares, while 0 investors held positions by with 0 shares. The mentioned changes placed institutional holdings at 80,020,107 shares, according to the latest SEC report filing. ABNB stock had 388 new institutional investments in for a total of 80,020,107 shares, while 0 institutional investors sold positions of 0 shares during the same period.