Booking Holdings: The Reverse Split Creates Opportunity

Treading SoftlyInvesting GroupFollow5ShareSavePlay(13min)Comments(9)SummaryBooking Holdings executed a 25-for-1 stock split, increasing accessibility for retail investors without changing underlying value.BKNG leads the $3 trillion global travel market, posting 16% YoY Q4 revenue growth and 17.4% adjusted EPS growth, outperforming consensus.Shares trade at a forward PE of 15.8, well below the 10-year average, with a fair value estimate of $6,089—27% upside potential.Risks include margin pressure from Google's AI initiatives and macroeconomic headwinds, but BKNG's asset-light model, dividend growth, and buybacks support long-term total returns.Looking for more investing ideas like this one? Get them exclusively at The Dividend Kings. Learn More » karandaev/iStock via Getty Images Co-authored by Kody's Dividends Many investors fear the term "reverse split." Usually, a reverse split occurs more often in the fund space or with smaller companies when the share value of the company has declined soThis article was written byTreading Softly4.41K FollowersFollowScott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BKNG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings teamSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.