Marriott CFO Kathleen Oberg sells $673,567 in stock

Kathleen K. Oberg, the Executive Vice President and Chief Financial Officer of Marriott International Inc. (NASDAQ:), recently executed a sale of company stock. According to a filing with the Securities and Exchange Commission, Oberg sold 2,360 shares of Class A Common Stock at a price of $285.41 per share, amounting to a total transaction value of $673,567.

Following this transaction, Oberg holds 17,676.849 shares of Marriott stock, as clarified in a footnote addressing a technical issue in the reporting software. The filing also indicates that she possesses additional holdings, including restricted stock units and shares held indirectly through a 401(k) account and jointly with her spouse.

This transaction is part of Oberg’s ongoing management of her investment in Marriott, a leading global hospitality company headquartered in Bethesda, Maryland.

In other recent news, Marriott International has been the focus of several analyst adjustments based on recent financial developments and future projections. TD Cowen maintained its Buy rating, adjusting the price target from $295.00 to $283.00, in response to Marriott’s third-quarter performance and future expectations. The company’s Revenue per Available Room (RevPAR) increased by 3% in the third quarter, and a 2-3% increase is anticipated for the fourth quarter.

BMO Capital Markets, Mizuho (NYSE:) Securities, Baird, and Goldman Sachs all increased their price targets for Marriott, citing factors such as cost-saving plans, anticipated improvements in organic net unit growth, and algorithmic fee growth. Notably, Marriott has announced a significant cost reduction plan, aiming to cut $80-90 million in General and Administrative (G&A) expenses.

Marriott’s third-quarter results included a nearly 6% year-over-year increase in net rooms and a 3% rise in global RevPAR. 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 Marriott’s third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS) falling short of expectations, the RevPAR environment is viewed as relatively stable. The company’s fourth-quarter guidance was described as soft, with various factors contributing to the tempered outlook. However, these challenges are expected to be balanced by the company’s cost-savings initiatives aimed at 2025.

InvestingPro Insights

Kathleen K. Oberg’s recent stock sale comes at a time when Marriott International Inc. (NASDAQ:MAR) is experiencing strong market performance. According to InvestingPro data, the company’s stock is trading near its 52-week high, with a robust 32.33% price total return over the past three months. This aligns with an InvestingPro Tip highlighting Marriott’s strong return over the last three months.

The company’s financial health appears solid, with a market capitalization of $79.62 billion and impressive gross profit margins of 81.95% for the last twelve months as of Q3 2024. This strength is reflected in another InvestingPro Tip, which notes Marriott’s “impressive gross profit margins.”

However, investors should be aware that the stock’s current P/E ratio of 29.89 suggests a relatively high valuation. An InvestingPro Tip cautions that Marriott is “trading at a high P/E ratio relative to near-term earnings growth,” which may be a consideration for potential investors.

For those interested in a more comprehensive analysis, InvestingPro offers 18 additional tips for Marriott International, providing a deeper insight into the company’s financial position and market outlook.

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