Disclosed on June 23, CARY MCMILLAN, Director at Hyatt Hotels H, executed a substantial insider sell as per the latest SEC filing.
What Happened: MCMILLAN's decision to sell 1,000 shares of Hyatt Hotels was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $132,700.
The latest market snapshot at Tuesday morning reveals Hyatt Hotels shares up by 0.17%, trading at $132.88.
Unveiling the Story Behind Hyatt Hotels
Hyatt is an operator of owned (3% of total rooms) and managed and franchised (97%) properties across about 30 upscale luxury brands, which includes vacation brands (Apple Leisure Group, Hyatt Ziva, and Hyatt Zilara), the recently launched full-service lifestyle brand Hyatt Centric, the soft lifestyle brand Unbound, the wellness brand Miraval, and the midscale extended-stay brand Studios. Hyatt acquired Two Roads Hospitality in 2018 and Apple Leisure Group in 2021. The regional exposure as a percentage of total rooms is 63% Americas, 15% rest of world, and 22% Asia-Pacific.
Unraveling the Financial Story of Hyatt Hotels
Revenue Growth: Hyatt Hotels displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 0.23%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Holistic Profitability Examination:
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Gross Margin: The company faces challenges with a low gross margin of 19.32%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Hyatt Hotels exhibits below-average bottom-line performance with a current EPS of 0.2.
Debt Management: Hyatt Hotels's debt-to-equity ratio is below the industry average at 1.33, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: The current P/E ratio of 16.77 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.0, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 9.45, Hyatt Hotels could be considered undervalued.
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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The Impact of Insider Transactions on Investments
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Hyatt Hotels's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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