Is Marriott International Inc. (NASDAQ: MAR) Proving The Doubters Wrong?


    The Vanguard Group, Inc. has recently announced that it has increased stake in Marriott International Inc. (NASDAQ:MAR) by 5.21%. After grabbing 20.56 million shares, the institutional investor is now in possession of 1.02 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 6.34% having worth around $1.72 billion. Moreover, Eagle Capital Management LLC increased its share by 0.14 million to have a control over 13.78 million shares. And Fidelity Management & Research Co.. raised its holdings to 5.27 million shares by acquiring 7.58 million shares or 2.34% of the stake.

    Marriott International Inc. (MAR) concluded trading on 08/27/20 at a closing price of $101.79, with 3.85 million shares of worth about $391.85 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 8.26% during that period and on Thursday the price saw a gain of about 4.53%. Currently the company’s common shares owned by public are about 325.60M shares, out of which, 270.39M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 25 analysts are covering the MAR stock and their offered price forecasts bring an average price target of $101.05. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $125.00 and could fall to a lowest price of $83.00. Analysts also issued an outlook of 2.70 for the Marriott International Inc. stock for next 12 months. The stock’s current price level is -1.89% below of average price target set by the analysts, while a dip to estimated low would result in loss of -22.64 for the stock. However, touching the estimated high of $125.00 would mean a gain of 18.57% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 91 times over the past 12 months. They bought 716,546 shares in 41 of the transactions. In 50 selling transactions, insiders dumped 593,315 shares.

    Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Invesco QQQ Trust are the top 3 mutual funds which are holding stakes in Marriott International Inc. Vanguard Total Stock Market Index is currently holding 6.91 million shares of worth totaling $579.33 million. The company recently came selling 12592.0 shares which brought its stake up to 2.13% of the company’s outstanding shares. Vanguard 500 Index Fund sold 32786.0 shares, after which its hold over company’s outstanding shares shrunk to 1.71%, leaving 5.55 million shares with the mutual fund that have a worth of about $465.23 million. Invesco QQQ Trust, after buying 3.66 million shares, have now control over 1.13% of the stake in the company. It holds 5460.0 shares of worth $306.65 million.

    Marriott International Inc. (NASDAQ: MAR) started trading at $99.2503, above $1.87 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $101.79, or with a gain of 4.53%. Stock saw a price change of 8.26% in past 5 days and over the past one month there was a price change of 16.81%. Year-to-date (YTD), MAR shares are showing a performance of -32.78% which decreased to -18.79% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $46.56 but also hit the highest price of $153.39 during that period. While comparing its average daily trading volume of 4.26 million shares, we see that about 3.85 million changed hands on the day. The stock is currently trading 9.42% above its 20-day simple moving average (SMA20), while that difference is up 12.78% for SMA50 and it goes to -6.61% lower than SMA200.

    The Vanguard Group, Inc. acquired 20.56 million shares of Marriott International Inc. having value of about $1.72 billion. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 1.02 million shares in the company valued at close to $103693473.0, or have control over 5.21% stake in the company. Marriott International Inc. (NASDAQ: MAR) currently have 325.60M outstanding shares and institutions hold larger chunk of about 60.60% of that. Holding of mutual funds in the company is about 26.19% while other institutional holders and individual stake holders have control over 33.86% and 18.58% of the stake respectively.

    The stock has a current market capitalization of $32.58B and its 3Y-monthly beta is at 1.63. PE ratio of stock for trailing 12 months is 73.34, while it has posted earnings per share of $1.39 in the same period. It has Quick Ratio of 0.70. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for MAR, volatility over the week remained 3.43% while standing at 3.59% over the month.

    Analysts are in expectations that Marriott International Inc. (MAR) stock would likely to be making an EPS of -$0.05 in the current quarter, while forecast for next quarter ESPS is $0.22 and it is $3.02 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.47 which is $0.35 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $1.47 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -27.90% while it is estimated to increase by 1261.50% in next year. EPS is likely to shrink at an annualized rate of -5.85% for next 5-years, compared to annual growth of 8.40% made by the stock over the past 5-years.

    Analysts at 25 brokerage firms have issued recommendations for the Marriott International Inc. (MAR)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.70. Out of those 25 Wall Street analysts, 6 recommended a “Buy” rating, while 17 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Jefferies on August 14, 2020 offering a Buy rating for the stock and assigned a target price range of between $88 and $125 to it. Coverage by Gordon Haskett stated Marriott International Inc. (MAR) stock as a Hold in their note to investors on June 26, 2020, suggesting a price target of $89 for the stock. On June 22, 2020, Barclays Upgrade their recommendations, while on April 09, 2020, Wolfe Research Downgrade their ratings for the stock with a price target of. Stock get an Overweight rating from Wells Fargo on April 07, 2020.


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