Marriott Beats Estimates as Institutional and Insider Share Sales Emerge

Institutional investors have recently adjusted their holdings in Marriott International, Inc. According to regulatory filings, Lockheed Martin Investment Management Co. reduced its stake in the lodging company by 31.6% during the third quarter by selling 7,380 shares, leaving it with 15,970 shares valued at $5,680,000. In addition, Pictet Asset Management Holding SA trimmed its position by 1.1% to 449,874 shares, while Candriam S.C.A. cut its investment by 4.0% to 110,606 shares. Overall, institutional investors and hedge funds control 70.70% of the company's shares.

The institutional portfolio adjustments coincide with recent insider selling at the hotel chain. On Wednesday, November 4th, Chief Executive Officer Anthony Capuano sold 63,355 shares at an average price of $420.12, totaling $26,616,702.60 and reducing his direct holding by 55.47%. On the same day, Executive Vice President Benjamin T. Breland sold 2,500 shares at $423.32 for $1,058,300.00, while Executive Vice President Rena Reiss disposed of 4,969 shares at $423.32 for $2,103,477.08. Across the prior three months, company insiders sold 77,824 shares worth $32,243,110 and currently retain an 11.43% stake.

These sales followed Marriott's recent quarterly financial report on Monday, November 2nd. The hospitality company posted earnings per share of $3.02, exceeding the consensus analyst projection of $2.84. Revenue for the period increased 8.0% year over year to $7 billion, surpassing expectations of $6.93 billion. Marriott recorded a net margin of 9.68% alongside a negative return on equity of 69.94%. Looking at the full year, analysts anticipate earnings of 12.10 per share.

Following earnings, Marriott announced a quarterly dividend of $0.73 per share, which represents $2.92 annualized and a yield of 0.7%. The payout is scheduled for Thursday, December 31st, to stockholders of record as of Thursday, November 19th. The company also expanded its international presence by introducing a Luxury Collection property in Laos.

Analyst reactions following the results have been mixed. Wells Fargo & Company lifted its target price from $426.00 to $463.00 with an overweight rating, and Barclays raised its target from $363.00 to $409.00 with an equal weight rating. Conversely, Freedom Broker downgraded the shares from strong buy to hold. Across 27 brokerages monitored by MarketBeat, the stock holds a Moderate Buy consensus with an average target price of $399.04.