#2 - Marriott (NASDAQ:MAR)
It was going to be a brutal earnings season. But it really hurts when you have to be one of the first companies to report. Marriott (NASDAQ:MAR) was one of those companies and the preliminary numbers it provided for the first quarter were gruesome. The “highlights” such as they were are a 23% drop in revenue per available room (RevPAR) with a 60% drop in RevPAR just in the month of March.
Marriott stock initially rose on a forecast that, while grim, seemed to be in-line and perhaps even less bad than expected. But the stock has since struggled to hold those gains and is still sitting on a 40% loss in 2020. In the last two weeks, five analysts have offered opinions on MAR stock. Although only one of those analysts gave the stock a positive report (raising their price target), the consensus price target among those five analysts has the stock around $86 per share.
Of particular interest to prospective investors is the company’s dividend. Marriott has increased its dividend every year for the last 9 years. The company did issue a quarterly dividend on March 31, 2020. The company’s next dividend is scheduled for May.
Like many travel stocks investors will be watching closely to see if Marriott suspends its dividend. However, the company pays out only 32% of its earnings as a dividend so a cut in the dividend may be more likely than an outright suspension of the dividend.
The hotel chain still has 25% of its 7,300 properties closed due to the novel coronavirus pandemic.
About Marriott International
Marriott International, Inc engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, and City Express by Marriott brand names, as well as operates residences, timeshares, and yachts.
Read More - Current Price
- $240.84
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $236.69 (1.7% Downside)
