David Udell, Executive Vice President and Group President-ASPAC at Hyatt Hotels Corp (NYSE:H), recently disclosed a significant sale of company stock. According to a recent SEC filing, Udell sold a total of 2,218 shares of Hyatt's Class A common stock on November 13, 2024, at a price of $158 per share, amounting to approximately $350,444.
In addition to this sale, Udell also reported exercising stock appreciation rights, acquiring 3,445 shares at an exercise price of $56.27 per share. Following these transactions, Udell holds 7,761 shares of Hyatt stock.
In other recent news, Hyatt Hotels Corporation disclosed potential changes in stock ownership, with the Pritzker family stockholders potentially selling up to 15,360,573 restricted shares in the public market. The financial services firm Baird revised its price target for Hyatt slightly upwards to $158.00 from $157.00, maintaining a neutral stance on the stock. In their Third Quarter 2024 Earnings Conference Call, Hyatt reported a system-wide RevPAR increase of 3% and a 10% expansion in its hotel pipeline. The World of Hyatt membership saw a significant increase, reaching a record 51 million, a 22% increase from the previous year. Strategic joint ventures and acquisitions, such as the partnership with Grupo Pinero and the purchase of Standard International, have bolstered Hyatt's position in the hospitality industry. Hyatt also completed significant asset sales, including the Hyatt Regency Orlando for $1.07 billion. The company anticipates full-year system-wide RevPAR growth of 3% to 4% and net rooms growth of 7.75% to 8.25%. These are among the recent developments in Hyatt's operational and financial performance.
InvestingPro Insights
David Udell's recent stock sale at Hyatt Hotels Corp (NYSE:H) comes at a time when the company's financial metrics and market performance present an intriguing picture for investors. According to InvestingPro data, Hyatt's stock has shown remarkable strength, with a 40.85% price total return over the past year. This robust performance aligns with the company's impressive gross profit margins, which stand at 68.97% for the last twelve months as of Q3 2024.
InvestingPro Tips highlight that Hyatt has been aggressively buying back shares, a strategy that often signals management's confidence in the company's value. This buyback activity, coupled with the stock's strong return over the last five years, suggests a long-term positive outlook that may have influenced Udell's decision to exercise stock appreciation rights.
However, investors should note that Hyatt's stock price movements are quite volatile, which could explain the timing of Udell's partial sale. The company's P/E ratio of 11.33 and its market capitalization of $14.71 billion indicate that the market values Hyatt's earnings at a relatively moderate level compared to some of its peers in the hospitality industry.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Hyatt Hotels Corp, providing deeper insights into the company's financial health and market position.
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