Stephen Holmes, a director at Wyndham (NYSE:WH) Hotels & Resorts, Inc. (NYSE:WH), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Holmes sold a total of 80,000 shares of common stock on October 25, 2024. The transactions were executed at prices ranging from $90.75 to $91.32 per share, resulting in a total sale value of approximately $7.28 million.
Following these transactions, Holmes retains direct ownership of 365,371 shares of Wyndham Hotels' common stock. Additionally, Holmes made a charitable donation of 1,000 shares, which were transferred as a gift and carried no monetary value. The director also holds deferred and restricted stock units, totaling 20,800 shares.
These transactions provide insight into Holmes' current investment strategy and his involvement with Wyndham Hotels & Resorts as a director.
In other recent news, Wyndham Hotels & Resorts has reported a successful third quarter in 2024. The company announced a 7% increase in adjusted EBITDA and a 10% rise in adjusted EPS. Furthermore, Wyndham expanded by opening over 17,000 rooms and improved franchisee retention. In terms of international growth, particularly in EMEA and Latin America, the figures were strong. The company also launched the Microtel brand in India, planning to add 40 new hotels by 2031.
Despite a slight decline in U.S. RevPAR, international figures grew, and the company remains optimistic about the future with a record development pipeline and a strategy focused on shareholder and franchisee value. Wyndham also added over 2 million new Wyndham Rewards members, now totalling over 112 million globally. The company increased its full-year adjusted diluted EPS guidance to $4.22 to $4.34.
These are recent developments, demonstrating the company's robust growth and optimistic outlook. Wyndham plans to continue leveraging its growth strategy for shareholder and franchisee value, aiming for a net room growth of 3% to 5% and RevPAR returning to a 2% to 3% range by 2026. The company has allocated $100 million to Project ECHO with capital deployment ramping up in 2025 and 2026.
InvestingPro Insights
The recent stock sale by Stephen Holmes, a director at Wyndham Hotels & Resorts, Inc. (NYSE:WH), comes at a time when the company's stock is trading near its 52-week high. According to InvestingPro data, Wyndham's stock price is currently at 98.62% of its 52-week high, with a closing price of $90.02 as of the last trading session.
This sale aligns with an InvestingPro Tip indicating that WH's RSI suggests the stock is in overbought territory. Additionally, the company has shown a significant return over the last week, with a 9.56% price total return, and an impressive 18.94% return over the last three months.
Despite the director's sale, Wyndham Hotels & Resorts maintains strong fundamentals. The company boasts an impressive gross profit margin of 68.84% for the last twelve months as of Q3 2024, reflecting its operational efficiency. Furthermore, Wyndham has been rewarding its shareholders, with an InvestingPro Tip noting that the company has raised its dividend for 3 consecutive years. The current dividend yield stands at 1.68%.
It's worth noting that Wyndham's management has been actively engaged in share repurchases, as another InvestingPro Tip highlights that management has been aggressively buying back shares. This strategy often signals confidence in the company's future prospects and can potentially increase shareholder value.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Wyndham Hotels & Resorts, providing a deeper understanding of the company's financial health and market position.
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