Marriott International Inc. (NASDAQ:MAR) has announced a temporary suspension of trading under its employee benefit plans, according to a recent SEC filing. The blackout period is set to commence at 4 p.m. Eastern time on September 25, 2024, and is expected to conclude by October 18, 2024.
This suspension is due to the Marriott Retirement Savings Plan (RSP) transitioning to a new plan recordkeeper. During the blackout period, employees will not be able to make any changes to their investments or contribution rates. They will also be unable to take loans or distributions from their RSP accounts. This includes transactions involving Marriott International, Inc. Company Stock Fund, which is an available investment option within the RSP.
Participants in the RSP were notified of this upcoming blackout period on Monday. The notice also extended to Marriott's directors and executive officers, who will be subject to trading restrictions on their Marriott common stock during this time, as required by the Sarbanes-Oxley Act of 2002 and Rule 104 of Regulation BTR.
The filing also included a copy of the notice sent to directors and executive officers, which is incorporated by reference and dated Monday, August 19, 2024. This notice is a regulatory requirement to ensure that insiders are aware of and comply with trading restrictions during the blackout period.
The article is based on an 8K filing.
In other recent news, Marriott International has seen significant developments. The company entered a long-term licensing agreement with Sonder Holdings, expanding its portfolio with over 9,000 rooms from Sonder's properties by year-end and an additional 1,500 rooms in the pipeline. This partnership is projected to boost Marriott's net room growth to between 6 to 6.5 percent by 2024.
Marriott also issued $1.5 billion in new debt securities, with net proceeds totaling approximately $1.48 billion, intended for general corporate purposes. This move aligns with Marriott's broader financial strategy and follows the filing of a Prospectus and Prospectus Supplement with the Securities and Exchange Commission.
The company reported robust second-quarter performance in 2024, with a 6% year-over-year increase in net rooms and nearly a 5% rise in global revenue per available room (RevPAR). However, Mizuho maintained a neutral stance on Marriott's stock, adjusting the price target due to concerns including a slowdown in China, deceleration in hotel leisure spending, and questions regarding the sustainability of Marriott's earnings algorithm.
These are recent developments that highlight Marriott's strategic partnerships, financial maneuvers, and performance metrics.
InvestingPro Insights
As Marriott International Inc. (NASDAQ:MAR) navigates through its upcoming blackout period due to the transition of its Retirement Savings Plan, investors and employees alike may be considering the company’s financial health and market performance. Here are some key insights from InvestingPro that could provide valuable context:
Marriott boasts an impressive gross profit margin, with real-time data showing a margin of 81.77% over the last twelve months as of Q2 2024. This indicates strong operational efficiency and an ability to retain a significant portion of revenue after accounting for the cost of goods sold. Additionally, the company has been actively managing its share count, as evidenced by aggressive share buybacks, which could signal management's confidence in the company's value.
On the valuation front, Marriott is trading at a high P/E ratio of 22.27, suggesting that investors are willing to pay a premium for its earnings. This is further supported by the company's market capitalization of $63.11 billion USD, reflecting its substantial size within the hospitality industry. However, it's important to note that 14 analysts have revised their earnings expectations downwards for the upcoming period, which could indicate potential headwinds or a reassessment of the company's growth trajectory.
For those interested in a deeper dive into Marriott's financials and market performance, InvestingPro offers additional insights and tips. Currently, there are 10 more InvestingPro Tips available for Marriott, which can be found at https://www.investing.com/pro/MAR. These tips could provide further guidance for those looking to make informed decisions regarding their investment in Marriott International Inc. during this transitional time for the company's employee benefit plans.
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