Key Takeaways:
Booking Holdings (NASDAQ: BKNG) has completed its 25-for-1 stock split effective today, April 2, a move to make its shares more accessible after a more than 31,800% gain over the last 25 years.
HSBC analyst Meredith Prichard Jensen recently called Booking an "undervalued global leader," assigning a pre-split price target of $7,746 and citing the company's strong performance. Wall Street remains broadly positive, with 79% of the 38 analysts covering the stock rating it a buy or strong buy as of March.
Shareholders of record as of March 6 will receive 24 additional shares for each share owned, distributed after the market close on April 2. The stock is set to begin trading on a split-adjusted basis at the market open on April 6, which would notionally reduce the price from its March 27 close of $4,062.14 to approximately $184.
The split aims to make direct ownership more accessible for retail investors. Following a recent pullback, the company trades at 13 times its 2027 forecast earnings per share, a 42% discount to its average forward price-to-earnings ratio over the last five years.
The online travel giant's decision comes on the back of strong financial performance. In 2025, Booking Holdings generated $26.9 billion in revenue, a 13% year-over-year increase, with gross bookings growing 12% to $186.1 billion. The growth was fueled by 1.24 billion room nights booked, up 8% from the prior year.
This forward split marks a significant turnaround from the company's past. In 2003, then named Priceline, the company executed a 1-for-6 reverse stock split when its share price fell close to $1 following the dot-com bubble and travel industry struggles.
The lower share price could attract a new wave of retail investment into the travel industry leader. Investors will now watch for the company's first-quarter results for confirmation that booking momentum is continuing, with management previously guiding for revenue growth of 15%.
This article is for informational purposes only and does not constitute investment advice.
