SVP & Chief Accounting Officer Of Expedia Group Sold $770K In Stock

A substantial insider sell was reported on August 20, by Lance Soliday, SVP & Chief Accounting Officer at Expedia Group EXPE, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Soliday executed a sale of 5,725 shares of Expedia Group with a total value of $770,454.

As of Wednesday morning, Expedia Group shares are up by 0.29%, currently priced at $133.91.

All You Need to Know About Expedia Group

Expedia is the world's second-largest online travel agency by bookings, offering services for lodging (80% of total 2023 sales), air tickets (3%), rental cars, cruises, in-destination, and other (11%), and advertising revenue (6%). Expedia operates a number of branded travel booking sites, but its three core online travel agency brands are Expedia, Hotels.com, and Vrbo. It also has a metasearch brand, Trivago. Transaction fees for online bookings account for the bulk of sales and profits.

Understanding the Numbers: Expedia Group's Finances

Revenue Growth: Expedia Group's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.96%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 89.83%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.92, Expedia Group showcases strong earnings per share.

Debt Management: Expedia Group's debt-to-equity ratio surpasses industry norms, standing at 7.37. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 24.06 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.44 is lower than the industry average, implying a discounted valuation for Expedia Group's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.72, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Unmasking the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Expedia Group's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.