Global Business Travel Group (NYSE:GBTG) Shares Gap Down Following Weak Earnings

Global Business Travel Group, Inc. (NYSE:GBTG) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.68, but opened at $7.00. Global Business Travel Group shares last traded at $7.50, with a volume of 50,442 shares traded.

The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.14). Global Business Travel Group had a negative net margin of 1.66% and a negative return on equity of 1.26%. The company had revenue of $597.00 million for the quarter, compared to analysts’ expectations of $611.89 million. During the same quarter in the previous year, the company posted ($0.02) EPS.

Global Business Travel Group announced that its board has authorized a share repurchase program on Tuesday, November 5th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 8.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms have weighed in on GBTG. Citigroup increased their target price on Global Business Travel Group from $9.00 to $9.50 and gave the stock a “buy” rating in a research note on Friday, October 4th. Evercore ISI increased their target price on Global Business Travel Group from $9.00 to $10.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 7th.

Hedge Funds Weigh In On Global Business Travel Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Amalgamated Bank grew its position in shares of Global Business Travel Group by 299.1% during the 2nd quarter. Amalgamated Bank now owns 4,342 shares of the company’s stock worth $29,000 after buying an additional 3,254 shares in the last quarter. Principal Financial Group Inc. bought a new stake in Global Business Travel Group during the second quarter valued at about $108,000. ANTIPODES PARTNERS Ltd bought a new stake in Global Business Travel Group during the first quarter valued at about $109,000. Entropy Technologies LP bought a new stake in Global Business Travel Group during the third quarter valued at about $145,000. Finally, Susquehanna Fundamental Investments LLC bought a new stake in Global Business Travel Group during the second quarter valued at about $143,000. Institutional investors own 82.46% of the company’s stock.

Global Business Travel Group Stock Performance

The business has a 50-day moving average of $7.50 and a two-hundred day moving average of $6.81. The company has a market cap of $3.94 billion, a P/E ratio of -83.35 and a beta of 0.63. The company has a debt-to-equity ratio of 1.11, a current ratio of 1.65 and a quick ratio of 1.65.

Global Business Travel Group Company Profile

Global Business Travel Group, Inc provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies.