In a recent transaction, ECI Trust - Julia, associated with a group holding more than 10% of Hyatt Hotels Corp (NYSE:H), sold a significant number of shares in the company. The sales, which took place on April 24 and 25, involved the disposal of Class B Common Stock, which is convertible into Class A Common Stock.
The transactions were executed at varying prices, with the weighted average sale price per share ranging from $151.78 to $155.42. The highest price at which shares were sold was $155.42, and the lowest was $151.31. On April 24, ECI Trust sold 10,896 shares at an average price of $151.78, 295 shares at $152.69, 3,311 shares at $153.73, 3,877 shares at $154.77, and 336 shares at $155.20. The following day, on April 25, an additional 44,000 shares were sold at $150.00 each.
The total value of the shares sold amounts to over $8.9 million, reflecting ECI Trust's significant divestment from Hyatt Hotels Corp. The trust has stated that, except for their pecuniary interest, they disclaim beneficial ownership of the reported securities, which may be due to voting agreements and limitations on the transfer of shares.
Investors monitoring insider transactions may find this sale noteworthy as it represents a substantial change in ECI Trust's holdings in Hyatt Hotels Corp. The company, known for its global hospitality services, is watched closely by those interested in the sector's performance and insider confidence levels.
InvestingPro Insights
As investors digest the news of ECI Trust's divestment from Hyatt Hotels Corp, it's important to consider the company's financial health and market performance. According to InvestingPro data, Hyatt Hotels Corp currently has a market capitalization of $15.33 billion. The company's gross profit margin remains impressive, sitting at 66.91% for the last twelve months as of Q4 2023. This indicates that Hyatt is maintaining its ability to manage costs effectively relative to its sales.
Despite the recent insider selling, shares of Hyatt Hotels Corp have experienced a large price uptick over the last six months, with a total return of 50.82%. This is complemented by a strong return over the last three months of 16.08%, which may suggest a positive market sentiment towards the company's stock. The price of the stock is also nearing its 52-week high, trading at 93.86% of that peak.
Turning to InvestingPro Tips, it's noted that Hyatt is trading at a high earnings multiple, with a P/E ratio of 72.18, and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 89.81. This could indicate that investors are expecting higher earnings growth in the future, justifying the current valuation. Analysts have also revised their earnings downwards for the upcoming period, which may warrant caution for potential investors.
For those looking to delve deeper into Hyatt Hotels Corp's financials and future prospects, InvestingPro offers additional insights. There are more InvestingPro Tips available for Hyatt at https://www.investing.com/pro/H. To gain access to these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, helping investors make more informed decisions.
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