Marriott International (NASDAQ:MAR) Shares Down 5.7% - Should You Sell?

Key Points

• Marriott’s shares fell 5.7% to about $351.47 despite a second-quarter earnings beat, with adjusted EPS of $3.19 versus roughly $3.03–$3.08 expected.
• Operating results were broadly strong: global comparable RevPAR rose 3.4%, rooms grew 4.5% year over year, and the development pipeline reached nearly 629,000 rooms. However, international RevPAR declined 0.5% due partly to Middle East conflict-related travel weakness.
• Investor concerns include a high valuation, uncertainty around U.S. co-branded credit-card contract renegotiations, and insider selling. Analysts maintain a “Moderate Buy” consensus with an average price target of approximately $388.59.

Marriott International, Inc. (NASDAQ:MAR - Get Free Report)'s share price dropped 5.7% during trading on Monday . The stock traded as low as $348.58 and last traded at $351.4730. Approximately 588,321 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 1,540,359 shares. The stock had previously closed at $372.83.

Key Stories Impacting Marriott International

Here are the key news stories impacting Marriott International this week:

• Positive Sentiment: Marriott reported second-quarter adjusted EPS of $3.19, above the roughly $3.03–$3.08 analyst expectations and up from $2.65 a year earlier. Adjusted net income was $844 million, while adjusted EBITDA reached $1.592 billion. Marriott International Reports Second Quarter 2026 Results
• Positive Sentiment: Worldwide comparable RevPAR increased 3.4%, led by 5.0% growth in the U.S. and Canada. Marriott also added approximately 17,900 net rooms, with total rooms up 4.5% year over year, and its development pipeline reached a record nearly 629,000 rooms. The company repurchased 3 million shares for $1.1 billion during the quarter. Quarterly Results Release
• Neutral Sentiment: Management raised its annual room-revenue growth outlook, but investors appear to have expected stronger results after Marriott’s substantial prior stock run and elevated valuation. Analysts’ median recent price target was approximately $385.50, although targets varied widely.
• Negative Sentiment: International comparable RevPAR declined 0.5%, with the Middle East conflict—particularly the Iran-related disruption—hurting sales and travel demand. The regional weakness detracted from otherwise solid global operating trends. Marriott Says Middle East Conflict Weighed on Sales
• Negative Sentiment: The company’s outlook and commentary were viewed as less compelling than the earnings beat warranted. Investors are also monitoring uncertainty surrounding the renegotiation of Marriott’s U.S. co-branded credit-card arrangements, which was not included in prior guidance. Marriott Falls as Investors Weigh Earnings and Guidance
• Negative Sentiment: Reported insider activity showed 12 open-market sales and no purchases over the past six months, including sales by senior executives. While not necessarily a near-term fundamental signal, the pattern may add to investor caution.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on MAR shares. Barclays upped their price target on Marriott International from $376.00 to $379.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 21st. Mizuho upped their target price on shares of Marriott International from $343.00 to $384.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Morgan Stanley increased their target price on shares of Marriott International from $353.00 to $380.00 and gave the company an "overweight" rating in a report on Friday, July 17th. JPMorgan Chase & Co. boosted their price target on shares of Marriott International from $387.00 to $400.00 and gave the stock a "neutral" rating in a report on Tuesday, July 21st. Finally, Robert W. Baird reduced their price objective on shares of Marriott International from $388.00 to $386.00 and set a "neutral" rating for the company in a research report on Thursday, May 7th. Nine equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $388.59.

Marriott International Price Performance

The stock has a market capitalization of $91.85 billion, a P/E ratio of 36.48, a price-to-earnings-growth ratio of 2.92 and a beta of 1.11. The stock has a fifty day moving average price of $379.52 and a 200 day moving average price of $354.41.

Marriott International (NASDAQ:MAR - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The company reported $3.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.03 by $0.16. The business had revenue of $2.01 billion for the quarter, compared to analysts' expectations of $7.19 billion. Marriott International had a negative return on equity of 80.97% and a net margin of 9.72%.The firm's quarterly revenue was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.65 EPS. Research analysts anticipate that Marriott International, Inc. will post 11.66 earnings per share for the current year.

Marriott International Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 22nd were paid a $0.73 dividend. The ex-dividend date was Friday, May 22nd. This represents a $2.92 annualized dividend and a yield of 0.8%. This is a boost from Marriott International's previous quarterly dividend of $0.67. Marriott International's dividend payout ratio is currently 30.64%.

Insider Buying and Selling

In other news, EVP Peggy Roe sold 3,000 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $361.56, for a total transaction of $1,084,680.00. Following the completion of the transaction, the executive vice president directly owned 19,827 shares in the company, valued at $7,168,650.12. The trade was a 13.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 11.43% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Marriott International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MAR. Brighton Jones LLC grew its holdings in shares of Marriott International by 2.5% during the fourth quarter. Brighton Jones LLC now owns 8,887 shares of the company's stock worth $2,479,000 after purchasing an additional 218 shares in the last quarter. Empowered Funds LLC lifted its position in Marriott International by 39.1% during the first quarter. Empowered Funds LLC now owns 5,805 shares of the company's stock valued at $1,383,000 after purchasing an additional 1,631 shares during the last quarter. Woodline Partners LP increased its holdings in shares of Marriott International by 39.6% in the 1st quarter. Woodline Partners LP now owns 19,332 shares of the company's stock worth $4,605,000 after buying an additional 5,480 shares during the last quarter. Intech Investment Management LLC raised its position in shares of Marriott International by 21.8% during the 1st quarter. Intech Investment Management LLC now owns 6,035 shares of the company's stock valued at $1,438,000 after buying an additional 1,079 shares in the last quarter. Finally, Sei Investments Co. lifted its holdings in shares of Marriott International by 3.8% during the 2nd quarter. Sei Investments Co. now owns 137,329 shares of the company's stock worth $37,520,000 after acquiring an additional 5,007 shares during the last quarter. 70.70% of the stock is currently owned by hedge funds and other institutional investors.

Marriott International Company Profile

Marriott International is a global lodging company that develops, manages and franchises a broad portfolio of hotels and related lodging facilities. Its core activities include hotel and resort management, franchise operations, property development and the provision of centralized services such as reservations, marketing and loyalty program management. The company's brand architecture spans market segments from luxury and premium to select-service and extended-stay, enabling it to serve a wide range of business and leisure travelers as well as corporate and group customers.

The company traces its roots to the hospitality business founded by J.

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