Read This Before Buying Airbnb, Inc. Stock (NASDAQ: ABNB)


We often see insiders buying back shares of companies that are performing well over the long term. The flip side is that there are more than a few examples of insiders giving up their stocks before a period of poor performance. Shareholders might therefore want to know if any insiders bought or sold shares of Airbnb, Inc. (NASDAQ: ABNB).

What is insider selling?

It is perfectly legal for company insiders, including members of the board of directors, to buy and sell shares in a company. However, these insiders should disclose their trading activities and not trade on the basis of inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have done. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Columbia University study found that “insiders are more likely to engage in open market purchases of their own company’s stocks when the company is about to reveal new deals with customers and suppliers.”

See our latest analysis for Airbnb

Airbnb Insider Transactions in the Last Year

Co-founder Nathan Blecharczyk had the biggest insider sale in the past 12 months. This one-time transaction involved shares valued at US $ 68 million priced at US $ 140 each. This means that an insider was selling shares around the current price of US $ 134. We generally don’t like to see insider sales, but the lower the selling price, the more it concerns us. We note that this sale took place at roughly the current price, so this is not a major concern, although it is not a good sign.

In the past year, Airbnb insiders have not purchased any shares in the company. You can see insider trading (by companies and individuals) over the past year illustrated in the graph below. If you want to know exactly who sold, for how much and when, just click on the graph below!

NasdaqGS: ABNB Insider Trading Volume July 19, 2021

If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).

Airbnb insiders sold shares recently

The past three months have seen significant insider sales at Airbnb. In total, insiders dumped $ 76 million in stock during that time, and we didn’t make any purchases. Overall, that makes us a little cautious, but that’s not the end.

Does Airbnb pride itself on high insider ownership?

I like to look at how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. We generally like to see fairly high levels of insider ownership. It’s great to see Airbnb insiders own 33% of the company, worth around $ 27 billion. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.

What might insider trading at Airbnb tell us?

Insiders sold Airbnb shares recently, but they haven’t bought any. And there haven’t been any purchases to comfort us in the past year. The company prides itself on a strong insider participation, but we’re a little hesitant, given the history of share sales. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. To help you, we have discovered 2 warning signs that you should run your eye to get a better picture of Airbnb.

Of course Airbnb may not be the best stock to buy. So you might want to see this free collection of high quality companies.

For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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