In a recent transaction, an insider of Hyatt Hotels Corp (NYSE:H) sold a significant number of shares, resulting in over $3.9 million in total sales. The transactions occurred on April 22 and 23, with prices ranging from $146.50 to $150.16 per share.
On April 22, two separate sales were made by the insider, with one lot of 9,661 shares sold at an average price of approximately $146.60, ranging between $146.50 and $146.88. The second lot consisted of 11,432 shares, sold at an average price of $147.23, with prices ranging from $146.89 to $147.88. The total value of the shares sold on this day exceeded $3 million.
The following day, the insider continued to sell shares, with a lot of 879 shares going for an average price of $149.08, within a narrow range of $149.02 to $149.11. Another lot of 16,121 shares was sold at an average price of $149.61, with the highest price reaching $150.16 and the lowest at $149.17. The combined sales on April 23 amounted to nearly $900,000.
The insider involved in these transactions was a member of a group that may be deemed to own more than 10% of Hyatt Hotels Corp due to certain voting agreements and restrictions on share transfers. The insider has disclaimed beneficial ownership of the reported securities, except to the extent of their pecuniary interest.
Following the transactions, the insider still retains a substantial number of shares in the company, indicating a continued vested interest in Hyatt's performance. The sales were carried out in a manner consistent with SEC regulations, and the insider has committed to providing full information regarding the number of shares sold at each separate price upon request.
Investors often monitor insider transactions as they can provide insights into how the company's executives and significant shareholders view the stock's value and future prospects. These recent sales by a Hyatt Hotels insider represent a notable change in ownership and could be of interest to current and potential shareholders.
InvestingPro Insights
As investors digest the news of the recent insider transactions at Hyatt Hotels Corp (NYSE:H), current and potential shareholders may find additional context through real-time data and analysis from InvestingPro. The company's robust gross profit margin stands out, with a remarkable 66.91% for the last twelve months as of Q1 2023. This indicates a strong ability to control costs relative to revenue, an essential factor in assessing the company's financial health.
Despite the insider sales, the market valuation of Hyatt Hotels Corp remains significant with a market capitalization of $15.34 billion. However, the company is trading at a high earnings multiple, with a P/E ratio of 72.32 and an adjusted P/E ratio for the last twelve months as of Q1 2023 at 89.76, suggesting that the stock may be priced optimistically relative to its earnings.
InvestingPro Tips reveal that analysts have revised their earnings expectations downwards for the upcoming period, which could be a point of consideration for those looking at the long-term investment potential of Hyatt. Additionally, the company has experienced a large price uptick over the last six months, with a total return of 46.92%, reflecting a strong market performance that shareholders may want to take into account.
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