BETHESDA, MD—Anthony Capuano, President and CEO of Marriott International Inc. (NASDAQ:MAR), reported a significant sale of company stock, according to a recent SEC filing. On November 12, Capuano sold 8,332 shares of Marriott's Class A common stock, with prices ranging from $284.48 to $284.56 per share, totaling approximately $2.37 million.
The transaction follows an earlier acquisition of 23,370 shares at a price of $284.57 per share, valued at around $6.65 million. These shares were acquired through the exercise of Stock Appreciation Rights (SARs), which were settled in Class A common stock.
Following these transactions, Capuano holds 93,323 shares of Marriott's Class A common stock directly. Additionally, he maintains an indirect ownership of 1,906 shares through a 401(k) account.
These moves are part of Capuano's ongoing management of his equity holdings in the company, reflecting routine financial planning and stock compensation practices. Investors often monitor such transactions to gauge insider sentiment and potential future performance of the company.
In other recent news, Marriott International has seen a series of financial changes and projections. TD Cowen maintained its Buy rating on Marriott but reduced the stock's price target from $295.00 to $283.00 based on the company's third-quarter performance and future expectations. Despite a slight decrease in its 2024 EBITDA estimate, the firm's outlook for 2025 remains optimistic, with an expected increase in the number of units by approximately 4-5%. Marriott's management also announced a significant cost reduction plan, aiming to cut $80-90 million in G&A expenses, which is expected to contribute positively to the company's financials.
BMO Capital Markets, Mizuho (NYSE:MFG) Securities, Baird, and Goldman Sachs (NYSE:GS) have all raised their price targets for Marriott, citing various factors such as cost-saving plans, algorithmic fee growth, 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
To complement the recent stock transactions by Marriott International's CEO Anthony Capuano, it's worth noting some key financial metrics and insights from InvestingPro. Marriott's market capitalization stands at an impressive $79.62 billion, underscoring its position as a major player in the hospitality industry.
The company's financial health appears robust, with a 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 strong margins often indicate efficient operations and pricing power within the industry.
Additionally, Marriott has been rewarding its shareholders, as evidenced by another InvestingPro Tip stating that the company "has raised its dividend for 3 consecutive years." This commitment to increasing shareholder value is further supported by the dividend growth rate of 21.15% over the last twelve months.
It's also noteworthy that Marriott's stock has shown strong performance, with a 32.33% price total return over the past three months. This aligns with the InvestingPro Tip indicating a "strong return over the last three months."
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Marriott International, providing a deeper understanding of the company's financial position and market performance.
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