Kathleen K. Oberg, Executive Vice President and Chief Financial Officer of Marriott International Inc. (NASDAQ:MAR), recently sold shares of the company's Class A Common Stock, according to a regulatory filing. The sale involved 4,170 shares at a price of $283.30 per share, amounting to a total transaction value of approximately $1.18 million.
In addition to the sale, Oberg acquired 14,980 shares at prices ranging from $282.37 to $282.42, totaling approximately $6.23 million. These acquisitions were part of transactions involving stock appreciation rights.
Following these transactions, Oberg's direct ownership of Marriott shares has been adjusted, reflecting her continued involvement in the company’s equity structure.
In other recent news, Marriott International has been the focus of several analyst updates following its third-quarter earnings report. TD (TSX:TD) Cowen maintained its Buy rating but adjusted the price target from $295.00 to $283.00, reflecting Marriott's third-quarter performance and future expectations. Despite a slight decrease in its 2024 EBITDA estimate due to higher General and Administrative expenses and lower fees, the firm remains optimistic about 2025, expecting a unit growth of 4-5%.
BMO (TSX:BMO) Capital Markets increased Marriott's price target from $255.00 to $265.00, maintaining a Market Perform rating. The firm highlighted Marriott's cost-saving initiatives aimed at 2025, expected to balance lower fee growth projections. Mizuho (NYSE:MFG) Securities also revised its outlook on Marriott, increasing the price target to $246.00, maintaining a Neutral rating. The adjustment reflects optimism about the company's future performance, particularly in relation to algorithmic fee growth and the contribution of MGM rooms to net unit growth in 2024.
Baird raised Marriott's price target from $258.00 to $264.00, maintaining a Neutral rating. The firm anticipates improvements in Marriott's organic net unit growth starting in 2025, with the company's General and Administrative expense reductions expected to enhance earnings estimates. Goldman Sachs (NYSE:GS) increased Marriott's price target from $267.00 to $280.00, highlighting Marriott's long-term prospects, including a new cost-saving initiative expected to generate $80-$90 million in savings in the next year.
These are the recent developments in the company's financial landscape, and investors will be closely monitoring the company's future performance.
InvestingPro Insights
Marriott International's recent stock performance aligns with the insider transactions reported. According to InvestingPro data, the company's stock has shown a strong return of 33.56% over the last three months and is currently trading near its 52-week high, with a price that is 99.95% of its highest point in the past year.
These robust returns are supported by Marriott's solid financial fundamentals. The company boasts impressive gross profit margins of 81.95% for the last twelve months as of Q3 2024, reflecting its operational efficiency. This aligns with an InvestingPro Tip highlighting Marriott's "impressive gross profit margins."
Moreover, Marriott has demonstrated a commitment to shareholder returns. An InvestingPro Tip notes that the company "has raised its dividend for 3 consecutive years," with a current dividend yield of 0.88% and a significant dividend growth of 21.15% over the last twelve months.
Despite these positive indicators, investors should be aware that Marriott is trading at a relatively high P/E ratio of 28.51 (adjusted for the last twelve months as of Q3 2024). This valuation metric suggests that the stock may be priced at a premium compared to its earnings potential.
For readers interested in a more comprehensive analysis, InvestingPro offers 18 additional tips for Marriott International, providing a deeper understanding of the company's financial health and market position.
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