Expedia CEO Ariane Gorin sells stock worth $10.37 million

In a recent transaction, Ariane Gorin, Chief Executive Officer of Expedia (NASDAQ:) Group, Inc. (NASDAQ:EXPE), sold a significant portion of her holdings in the company. On November 12, Gorin sold a total of 57,244 shares of common stock, generating approximately $10.37 million. The shares were sold at prices ranging from $180.59 to $182.05.

Prior to the sale, Gorin exercised options to acquire 57,244 shares of common stock at a price of $104.50 per share. Following these transactions, Gorin's direct ownership of Expedia stock stands at 60,969 shares.

These transactions come as part of Gorin's ongoing management of her equity holdings in the company. Investors often closely monitor such insider transactions for potential insights into the company's future performance.

In other recent news, Expedia Group Inc. reported a 3% increase in revenue to $4.1 billion and a 7% rise in gross bookings to $27.5 billion in its Q3 2024 financial results. The company's overhead expenses decreased by 3% and cost of sales reduced by 6%, thanks to disciplined cost management. Leadership changes were also announced, with CFO Julie Whalen stepping down and Ramana Thumu stepping in as Chief Technology Officer.

Furthermore, Expedia raised its full-year guidance, demonstrating confidence in its strategic execution and ongoing demand. The company's EBITDA rose to $1.25 billion, a 3% increase from the previous year, with a margin of 30.8%. Mizuho (NYSE:) Securities, following these developments, increased its price target for Expedia from $135.00 to $165.00, maintaining a Neutral rating on the stock.

These are recent developments showing Expedia Group's resilience amid challenging macroeconomic conditions. The company is focusing on operational efficiencies, enhancing its AI technology to improve customer service and conversion rates, and is making efforts to regain international market share.

InvestingPro Insights

Expedia Group's recent insider transaction by CEO Ariane Gorin aligns with several key metrics and trends highlighted by InvestingPro. The company's stock has shown impressive momentum, with InvestingPro data revealing a 39.76% price return over the past three months and a substantial 58.91% return over six months. This strong performance is reflected in an InvestingPro Tip noting that the stock is trading near its 52-week high, with the price currently at 95.72% of that peak.

The sale of shares by Gorin at prices around $180-$182 is particularly interesting when considering that the fair value based on analyst targets is $180, according to InvestingPro data. This suggests that the CEO's decision to sell might be influenced by the stock's current valuation relative to expert estimates.

Despite the insider sale, Expedia Group maintains some attractive financial characteristics. An InvestingPro Tip highlights the company's impressive gross profit margins, which is supported by the data showing a gross profit margin of 89.19% for the last twelve months as of Q3 2023. Additionally, the company's P/E ratio of 22.86 and adjusted P/E of 20.44 indicate a reasonable valuation relative to earnings, especially considering the PEG ratio of 0.55, which suggests the stock may be undervalued relative to its growth prospects.

For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Expedia Group, providing a deeper understanding of the company's financial health and market position.

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