In a recent transaction, ACPS P.G. Trust, which is considered part of a group owning more than 10% of Hyatt Hotels Corp (NYSE:H), sold a significant number of shares in the company. On April 15, 2024, the trust sold 5,649 shares of Hyatt Hotels Corp's Class B Common Stock at an average price of $152.0059, with individual sale prices ranging from $152.00 to $152.15.
The total value of the shares sold by ACPS P.G. Trust amounted to approximately $858,800, based on the weighted average sale price. Following this transaction, the trust still holds a substantial position in the company, with 290,320 shares of Class B Common Stock remaining in its possession.
The sold Class B shares are convertible into Class A Common Stock at any time at the holder's discretion. Additionally, these shares automatically convert to Class A shares upon any transfer, barring certain exceptions as outlined in the company's Amended and Restated Certificate of Incorporation.
It's important to note that the trust has entered into voting agreements and has agreed to certain limitations on the transfer of Class A and Class B Common Stock, which is why it may be deemed a member of a 10% owner group. However, ACPS P.G. Trust has expressly disclaimed beneficial ownership of the securities reported herein, except to the extent of its pecuniary interest.
This sale was disclosed in a Form 4 filing with the Securities and Exchange Commission, dated April 17, 2024, with Zena Tamler signing on behalf of ACPS P.G. Trust. The trust has committed to providing full information regarding the number of shares sold at each separate price within the stated range upon request by Hyatt Hotels Corporation, any security holder, or the SEC staff.
InvestingPro Insights
As Hyatt Hotels Corp (NYSE:H) navigates the dynamic hospitality market, investors and stakeholders keep a close eye on the company's financial health and market performance. Here are some key metrics and insights from InvestingPro that shed light on Hyatt's current standing.
With a market capitalization of $15.05 billion, Hyatt Hotels Corp is a significant player in the industry. Its gross profit margin is notably impressive, standing at 66.91% for the last twelve months as of Q4 2023, reflecting the company's ability to maintain profitability amidst various market conditions. This is particularly relevant given the recent sale of shares by ACPS P.G. Trust, as it indicates the underlying financial strength of the company.
However, analysts have tempered expectations, with 4 analysts revising their earnings downwards for the upcoming period. This suggests that while the company has been performing well, there are concerns about its future earnings potential. Hyatt is also trading at a high earnings multiple, with a P/E ratio of 70.77 and an adjusted P/E ratio for the last twelve months of 87.99, which could indicate that the stock is valued optimistically by the market.
Despite these concerns, investors might be encouraged by Hyatt's recent stock performance. The company has seen a large price uptick over the last six months, with a 39.83% total return, and analysts predict the company will be profitable this year, as evidenced by the 10% profitability over the last twelve months.
For those looking to delve deeper into Hyatt's financials and stock performance, InvestingPro offers additional insights. There are more InvestingPro Tips available at https://www.investing.com/pro/H, which can provide a more comprehensive understanding of the company's position and potential. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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