Insiders Are Selling Airbnb (ABNB) Stock. Here’s Why.

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Despite a heavy few days of insider selling, shares of Airbnb (NASDAQ:ABNB) are up over 4% this week and nearly 2% today. What’s more, ABNB stock has so far outperformed the S&P 500 and Nasdaq Composite during 2022.

meone holds the Airbnb logo in front of Dresden, Germany landscape. ABNB stock.
Source: AlesiaKan / Shutterstock

The recent insider sales of this stock can be attributed to director Belinda Johnson, cofounder Joe Gebbia and Chief Technology Officer (CTO) Aristotle Balogh.

According to a Form 4 received by the U.S. Securities and Exchange Commission (SEC) yesterday, CTO Aristotle Balogh sold 1,000 shares of ABNB on March 29. The shares were sold at an average price of $174, resulting in a transaction amount of $174,000. After the sale, Balogh still owns 290,468 shares. Investors should also note that the executive’s shares were sold as part of a 10b5-1 trading plan, which allows insiders to sell stock on a prearranged schedule in order to comply with trading laws.

However, Balogh isn’t the only insider who has sold shares of ABNB stock recently.

More Airbnb Insiders Sell ABNB Stock

Who else is selling ABNB stock? Based on another Form 4 received by the SEC on March 28, director Belinda Johnson sold 20,000 shares on March 24. The shares were sold at an average price of $165, amounting to a total value of $3.3 million. After the purchase, Johnson still owns 79,327 shares. Like Balogh, the sale was also done in accordance with a 10b5-1 plan.

Finally, company cofounder Joe Gebbia has been selling shares of Airbnb, too, although mainly through Sycamore Trust. Gebbia serves on Sycamore’s board. On March 28, Sycamore Trust sold 488,643 shares at prices ranging between $162 and $169. After the sale, the trust still owns more than 5 million shares. Furthermore, the March 28 sale was Sycamore’s fourth sale this month. On March 7, 14 and 21, the trust sold 300,000 shares on each date.

Gebbia also directly exercised 15,523 share stock options he received as compensation this month. The options were granted at a price of $40.18 and Gebbia sold them at prices ranging between $165 and $169. In addition, all of Gebbia’s sales — both indirect and direct — were transacted based on a 10b5-1 plan.

Why are all of these insiders selling stock? Well, insider sales are not as conclusive as insider buys. Insiders may sell stock for a variety of reasons, whether it be for personal expenses, taxes or a loss of faith in the company. On the contrary, insiders only buy stock when they believe the price will go up. Still, insiders are not required to disclose a reason for insider sales.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/insiders-are-selling-airbnb-abnb-stock-heres-why/.

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