William P. Brown, Group President for the U.S. and Canada at Marriott International Inc. (NASDAQ:MAR), recently disclosed a sale of company shares. On November 22, Brown sold 1,707 shares of Class A Common Stock at an average price of $284.295 per share, totaling approximately $485,291.
Additionally, Brown acquired 6,600 shares through the exercise of Stock Appreciation Rights, which were priced at $142.05 per share. However, 4,893 shares were withheld to cover the exercise price and tax obligations, resulting in a net gain of 1,707 shares. Post these transactions, Brown's direct ownership stands at 18,184 shares of Class A Common Stock and 8,665 restricted stock units.
In other recent news, Marriott International has seen a series of financial adjustments and projections. TD Cowen retained its Buy rating on the company, despite a decrease in the stock's price target from $295.00 to $283.00, reflecting Marriott's third-quarter performance and future expectations. The company's Revenue per Available Room (RevPAR) increased by 3% in the third quarter, meeting the lower end of their guidance. The forecast for the fourth quarter anticipates a 2-3% increase in RevPAR.
BMO Capital Markets, Mizuho (NYSE:MFG) Securities, and Baird have all raised their price targets for Marriott, citing various factors such as cost-saving plans and anticipated improvements in organic net unit growth. Goldman Sachs also highlighted a new cost-saving initiative expected to generate $80-$90 million in savings in the next year.
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 provide additional context to William P. Brown's share transactions. According to InvestingPro data, Marriott's stock has shown strong momentum, with a 26.49% price total return over the past three months and a 37.42% return over the past year. The company is currently trading near its 52-week high, with its price at 99.45% of the peak.
Financially, Marriott demonstrates robust profitability with a gross profit margin of 81.95% for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip highlighting Marriott's "impressive gross profit margins." The company's revenue growth of 7.25% over the same period indicates steady expansion.
Investors should note that Marriott's P/E ratio stands at 30.02, which some may consider high. An InvestingPro Tip suggests that Marriott is "trading at a high P/E ratio relative to near-term earnings growth," which could be a factor for potential investors to consider.
For those seeking a deeper analysis, InvestingPro offers 16 additional tips on Marriott International, providing a more comprehensive view of the company's financial health and market position.
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