Global Business Travel Group (NYSE:GBTG) Shares Gap Down on Disappointing Earnings

Global Business Travel Group, Inc. (NYSE:GBTG) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. 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) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.14). The business had revenue of $597.00 million for the quarter, compared to the consensus estimate of $611.89 million. Global Business Travel Group had a negative return on equity of 1.26% and a negative net margin of 1.66%. During the same period in the prior year, the business posted ($0.02) earnings per share.

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

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Amalgamated Bank boosted its stake in Global Business Travel Group by 299.1% in the second quarter. Amalgamated Bank now owns 4,342 shares of the company’s stock valued at $29,000 after buying an additional 3,254 shares in the last quarter. Principal Financial Group Inc. bought a new stake in shares of Global Business Travel Group during the 2nd quarter valued at approximately $108,000. ANTIPODES PARTNERS Ltd acquired a new position in Global Business Travel Group during the 1st quarter worth approximately $109,000. Susquehanna Fundamental Investments LLC bought a new position in Global Business Travel Group in the 2nd quarter valued at approximately $143,000. Finally, Entropy Technologies LP acquired a new stake in Global Business Travel Group in the third quarter valued at approximately $145,000. 82.46% of the stock is owned by institutional investors.

Global Business Travel Group Trading Up 7.8 %

The business’s 50 day simple moving average is $7.50 and its two-hundred day simple moving average is $6.81. The stock 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 quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.11.

About Global Business Travel Group

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.