Breaking News: Marriott International Inc. Temporarily Suspends Trading Under Employee Benefit Plans - What Investors Need to Know
Marriott International Inc. (NASDAQ: MAR) has announced a temporary suspension of trading under its employee benefit plans, as per a recent SEC filing. The blackout period is set to start at 4 p.m. Eastern time on September 25, 2024, and is expected to end by October 18, 2024.
This suspension is due to the Marriott Retirement Savings Plan (RSP) transitioning to a new plan recordkeeper. During the blackout period, employees will not be able to make any changes to their investments or contribution rates. They will also be unable to take loans or distributions from their RSP accounts, including transactions involving Marriott International, Inc. Company Stock Fund.
Participants in the RSP, as well as Marriott's directors and executive officers, have been notified about the blackout period. Trading restrictions on Marriott common stock will apply to the directors and executive officers during this time, as mandated by regulations.
In other recent developments, Marriott International has entered into a licensing agreement with Sonder Holdings, adding over 9,000 rooms to its portfolio by year-end, with more in the pipeline. The company has also issued $1.5 billion in new debt securities for general corporate purposes.
Marriott reported strong second-quarter performance in 2024, with a 6% increase in net rooms and nearly a 5% rise in global revenue per available room (RevPAR). However, Mizuho has maintained a neutral stance on Marriott's stock due to various concerns.
InvestingPro Insights:
- Marriott boasts a high gross profit margin of 81.77% over the last twelve months, indicating operational efficiency.
- The company is trading at a high P/E ratio of 22.27, reflecting investor confidence in its earnings.
- Analysts have revised earnings expectations downwards, signaling potential challenges ahead.
For more insights and tips on Marriott's financials and market performance, visit InvestingPro. Stay informed during this transitional period for the company's employee benefit plans.
In conclusion, investors should monitor Marriott International Inc.'s performance closely during the blackout period and consider the company's financial health and market trends. The temporary suspension may impact employees' investment decisions and could have implications for Marriott's stock performance. Stay informed and seek expert advice to navigate through this period successfully.