William P. Brown, the Group President for the U.S. and Canada at Marriott International Inc. (NASDAQ:MAR), recently engaged in multiple stock transactions involving the company's Class A Common Stock. On November 8, Brown sold 2,037 shares at a price of $278.735 each, amounting to a total of approximately $567,783.
In addition to the sale, Brown acquired 5,483 shares and 1,462 shares at prices of $277.83 and $278.68, respectively, through stock appreciation rights. These acquisitions totaled approximately $1,930,772. Furthermore, a portion of the shares was withheld to cover the exercise price and tax obligations, resulting in additional transactions valued at $287,876 and $1,076,591. Following these transactions, Brown holds 18,184 shares of Marriott's Class A Common Stock directly.
In other recent news, Marriott International has seen a series of financial adjustments and projections. TD Cowen maintained its Buy rating but reduced the stock's 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 G&A expenses and lower fees, the firm's 2025 outlook remains optimistic, with the company's financials expected to benefit from a significant cost reduction plan of $80-90 million in G&A expenses.
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-savings initiatives aimed at 2025, which are expected to balance lower fee growth projections and provide significant savings opportunities. Mizuho (NYSE:MFG) Securities adjusted its outlook on Marriott, increasing the price target to $246.00 from the previous $233.00, maintaining a Neutral rating. The revision reflects a more optimistic view of the company's future performance, particularly in relation to its 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 G&A expense reductions expected to enhance earnings estimates. Goldman Sachs raised the hotel chain's price target from $267.00 to $280.00, highlighting Marriott's long-term prospects, including a new cost savings initiative expected to generate $80-$90 million in savings in the next year. These are the recent developments in the company's financial landscape.
InvestingPro Insights
Marriott International's recent stock transactions by Group President William P. Brown align with the company's strong market position and financial performance. According to InvestingPro data, Marriott boasts a substantial market capitalization of $79.7 billion, reflecting its status as a hospitality industry leader.
The company's financial health is underscored by its impressive gross profit margin of 81.95% for the last twelve months as of Q3 2024. This aligns with one of the InvestingPro Tips, which highlights Marriott's "impressive gross profit margins." Such robust profitability may contribute to the company's ability to reward shareholders, as evidenced by another InvestingPro Tip noting that Marriott "has raised its dividend for 3 consecutive years."
Investors should note that Marriott's stock has shown significant momentum, with a 33.56% price total return over the past three months and a 46.17% return over the past year. This performance has pushed the stock near its 52-week high, trading at 99.95% of that level. The strong recent performance aligns with the InvestingPro Tip indicating a "significant return over the last week."
For those interested in a deeper analysis, InvestingPro offers 18 additional tips on Marriott International, providing a comprehensive view of the company's financial health and market position.
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