In a recent transaction reported to the Securities and Exchange Commission, Peggy Fang Roe, Executive Vice President and Chief Customer Officer of Marriott International Inc. (NASDAQ:MAR), sold 3,000 shares of the company's Class A Common Stock. The shares were sold at a price of $276.13 each, totaling approximately $828,390. Following this transaction, Roe holds 17,443 shares of Marriott's common stock directly. Additionally, she retains 6,222 shares of restricted stock units. This transaction reflects a continued trend of executive stock sales at the hotel giant.
In other recent news, Marriott International's financial landscape has seen several updates. TD Cowen maintained its Buy rating on Marriott, adjusting its stock price target to $283.00 in response to the company's third-quarter performance. Despite the 3% increase in Revenue per Available Room (RevPAR) and a forecasted 2-3% increase for the fourth quarter, the firm slightly decreased its 2024 EBITDA estimate by 1% due to higher General and Administrative expenses. However, the firm's outlook for 2025 remains optimistic, expecting an increase in units by approximately 4-5% and a significant cut in G&A expenses amounting to $80-90 million.
BMO Capital Markets, Mizuho (NYSE:MFG) Securities, and Baird have also updated their outlooks on Marriott, highlighting cost-saving plans and potential improvements in organic net unit growth. Despite falling short of expectations in EBITDA and EPS in the third quarter, the company's RevPAR environment is viewed as stable. Goldman Sachs (NYSE:GS), on the other hand, raised Marriott's price target to $280.00, emphasizing the company's new cost-saving initiative expected to generate $80-$90 million in savings next year.
These are recent developments in Marriott's financial landscape, with various factors such as cost-saving initiatives and anticipated improvements in unit growth playing significant roles. Analysts' expectations and adjustments reflect the evolving financial situation of the company.
InvestingPro Insights
As Marriott International Inc. (NASDAQ:MAR) executives continue to engage in stock transactions, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a broader perspective on the company's performance and valuation.
According to InvestingPro data, Marriott boasts a market capitalization of $77.97 billion, reflecting its significant presence in the hospitality industry. The company's P/E ratio stands at 29.18, indicating that investors are willing to pay a premium for Marriott's earnings. This valuation is further supported by the company's impressive gross profit margin of 81.95% for the last twelve months as of Q3 2024, highlighting Marriott's ability to maintain strong profitability in its operations.
InvestingPro Tips reveal that Marriott has been aggressively buying back shares, which could be seen as a positive signal about the company's financial health and management's confidence in its future prospects. Additionally, the stock has shown a strong return over the last three months, with a price total return of 29.04% during this period.
It's worth noting that Marriott is trading near its 52-week high, with its current price at 99.35% of the highest point over the past year. This performance aligns with the InvestingPro Tip indicating a high return over the last decade, suggesting a long-term trend of value creation for shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips that could provide deeper insights into Marriott's financial position and market performance.
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