On September 15, 2023, Glenn Fogel, CEO and President of Booking Holdings Inc (BKNG, Financial), sold 750 shares of the company. This move is part of a broader trend of insider selling at Booking Holdings Inc, as we will explore in this article.
Glenn Fogel has been with Booking Holdings Inc since 2000, serving in various roles before becoming CEO and President. Under his leadership, the company has grown into a leading provider of online travel and related services to customers and partners in over 220 countries and territories through six primary brands: Booking.com, KAYAK, priceline, agoda.com, Rentalcars.com, and OpenTable.
Booking Holdings Inc operates in a highly competitive industry, with its success largely dependent on its ability to innovate and adapt to changing consumer behaviors and technological advancements. The company's business model is based on charging commissions for transactions facilitated through its platforms.
Over the past year, the insider has sold a total of 14,467 shares and purchased none. This recent sale of 750 shares is part of this larger trend. The insider's actions can often provide valuable insights into their view of the company's future prospects.
The insider transaction history for Booking Holdings Inc shows a clear trend of insider selling. Over the past year, there have been 34 insider sells and no insider buys. This could suggest that insiders believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sale, shares of Booking Holdings Inc were trading for $3,176.29, giving the company a market cap of $109.11 billion. The price-earnings ratio was 26.86, higher than the industry median of 19.04 but lower than the company’s historical median price-earnings ratio.
Despite the insider selling, the stock appears to be modestly undervalued based on its GF Value. With a price of $3,176.29 and a GuruFocus Value of $4,064.27, Booking Holdings Inc has a price-to-GF-Value ratio of 0.78.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sale of shares may raise some eyebrows, the stock's valuation according to the GF Value suggests that it may still be a good investment opportunity. As always, potential investors should conduct their own research and consider multiple factors before making investment decisions.
