Expedia Group Director Trades $1.85M In Company Stock

Making a noteworthy insider sell on January 2, DARA KHOSROWSHAHI, Director at Expedia Group EXPE, is reported in the latest SEC filing.

What Happened: KHOSROWSHAHI's recent move involves selling 10,000 shares of Expedia Group. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $1,851,527.

In the Friday's morning session, Expedia Group's shares are currently trading at $185.33, experiencing a down of 0.0%.

Discovering Expedia Group: A Closer Look

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.

Expedia Group's Economic Impact: An Analysis

Revenue Growth: Expedia Group displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 3.33%. This indicates a notable 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.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 90.44%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Expedia Group's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 5.28.

Debt Management: With a high debt-to-equity ratio of 4.96, Expedia Group faces challenges in effectively managing its debt levels, indicating potential financial strain.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.1, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.94 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 10.35, Expedia Group presents an attractive value opportunity.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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The Importance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key 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.

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