JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Marriott International Inc. (NASDAQ:MAR), currently valued at $77.8 billion, has issued $2 billion in new debt, according to a recent filing with the Securities and Exchange Commission. On Monday, the hotel giant entered into a terms agreement to issue $500 million of 5.100% Series RR Notes due 2032 and $1.5 billion of 5.500% Series SS Notes due 2037. According to InvestingPro data, the company operates with a moderate debt level, maintaining a strong financial health score of "GOOD."
The company announced that the net proceeds from the offering, which are approximately $1.96 billion after deducting underwriting discounts and estimated offering expenses, will be used for general corporate purposes. These may include working capital, capital expenditures, acquisitions, stock repurchases, or repayment of outstanding indebtedness. Notably, InvestingPro analysis reveals that management has been aggressively buying back shares, while maintaining impressive gross profit margins of 81.87%.
Interest payments for both the Series RR and SS Notes are scheduled semi-annually with the first payment due on October 15, 2025. The Series RR Notes will mature on April 15, 2032, and the Series SS Notes will mature on April 15, 2037. The company also retains the option to redeem the notes, either in whole or in part, under specific terms provided in the form of the note.
The debt issuance is governed by an indenture dated November 16, 1998, with The Bank of New York Mellon (NYSE:BK) serving as trustee. The public offering was made through a prospectus dated February 13, 2024, and a prospectus supplement dated February 24, 2025, which are part of Marriott’s Registration Statement on Form S-3.
This financial move comes as Marriott International continues to navigate the post-pandemic recovery of the hospitality industry. The company has not specified any immediate plans for the use of the proceeds beyond the broad categories mentioned.
Marriott’s financial strategy, as detailed in the SEC filing, reflects its ongoing efforts to strengthen its balance sheet and invest in its future growth. The information provided in this article is based on a press release statement.
In other recent news, Marriott International reported its fourth-quarter 2024 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $2.45, surpassing the forecasted $2.37. The company’s revenue also outperformed projections, reaching $6.43 billion compared to the anticipated $6.37 billion. Stifel analysts responded to these strong results by raising Marriott’s stock price target to $295 from $283, while maintaining a Hold rating. Additionally, Mizuho (NYSE:MFG) Securities adjusted its stance on Marriott by increasing the stock’s price target from $246 to $293, citing considerations of the company’s earnings algorithm and future implications.
Marriott’s financial performance was bolstered by a 7% increase in gross fee revenues and adjusted EBITDA, which also rose by 7% to $1.29 billion. The firm returned over $4.4 billion to shareholders through dividends and buybacks during the year. Despite these positive results, investor concerns about future growth prospects led to a 4.86% drop in Marriott’s stock in pre-market trading. Marriott projects a net rooms increase of 4-5% in 2025, with global revenue per available room (RevPAR) growth anticipated at 2-4%.
In related developments, Truist Securities reaffirmed its Buy rating on Marriott Vacations Worldwide, maintaining a price target of $142. This decision comes amid concerns over the company’s stock underperformance compared to its peers, with timeshare fees from Marriott Vacations expected to remain consistent in 2025. Truist highlighted Marriott Vacations as an ’idea stock’ for 2025, suggesting potential significant upside. Investors are keenly awaiting Marriott Vacations’ upcoming earnings report to assess the company’s financial health and future outlook.
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