BETHESDA, MD—Breland Benjamin T., Executive Vice President and Chief Human Resources Officer at Marriott International Inc. (NASDAQ:MAR), recently sold a portion of his holdings in the company. According to a recent SEC filing, Mr. Breland sold 500 shares of Class A Common Stock at a price of $274.49 per share, totaling approximately $137,245. Following the transaction, Mr. Breland retains direct ownership of 12,285.527 shares of Class A Common Stock.
In addition to his direct holdings, Mr. Breland holds 13,583 restricted stock units and has indirect ownership of 1,213.363 shares through a 401(k) account. This transaction provides insight into the executive's current stock position and financial strategy.
In other recent news, Marriott International has been the focus of several financial analysts. TD Cowen maintained its Buy rating on the hotel chain, despite reducing the stock's price target from $295.00 to $283.00 due to Marriott's third-quarter performance and future expectations. The company's Revenue per Available Room (RevPAR) increased by 3%, while a 2-3% increase is anticipated for the fourth quarter. A significant cost reduction plan of $80-90 million in general and administrative expenses was announced, expected to contribute positively to Marriott's financials.
BMO Capital Markets, Mizuho (NYSE:MFG) Securities, Baird, and Goldman Sachs (NYSE:GS) have all revised their price targets for Marriott, citing factors such as cost-saving plans, algorithmic fee growth, and anticipated improvements in organic net unit growth. Goldman Sachs highlighted a new cost-saving initiative expected to generate $80-$90 million in savings in the next year. Despite Marriott's third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS) falling short of expectations, the revenue per available room (RevPAR) environment is viewed as relatively stable.
Marriott's third-quarter results showed a nearly 6% year-over-year increase in net rooms and a 3% rise in global revenue per available room. The company also launched a new mid-scale brand, City Express by Marriott, and reported a record 219 million members in its loyalty program. Despite challenges in Greater China and flat leisure demand, Marriott has implemented cost-saving initiatives and anticipates restructuring charges in the fourth quarter. These are the recent developments in the company's financial landscape.
InvestingPro Insights
Marriott International's recent stock performance and financial metrics offer additional context to Executive Vice President Breland Benjamin T.'s decision to sell a portion of his holdings. According to InvestingPro data, Marriott's stock has shown strong momentum, with a 29% price total return over the past three months and a 43.49% return over the past year. The stock is currently trading near its 52-week high, with a price that is 99.78% of its peak.
InvestingPro Tips highlight that Marriott has been aggressively buying back shares, which could be seen as a positive signal for the company's financial health and confidence in its future prospects. Additionally, the company boasts impressive gross profit margins, which stood at 81.95% for the last twelve months as of Q3 2024. This strong profitability metric aligns with the company's solid financial position.
However, it's worth noting that 16 analysts have revised their earnings downwards for the upcoming period, which may indicate some caution about near-term performance. The stock's current P/E ratio of 28.75 suggests it may be trading at a premium compared to its peers or historical levels.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Marriott International, providing a deeper understanding of the company's financial health and market position.
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