Insider Activity Report: Marriott Vacations Worldwide (VAC)

John Geller, President and CEO at Marriott Vacations Worldwide (VAC) recently bought 5,000 shares. The buy increased his holdings by 5 percent, and came to a total cost of $564,200.

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  • He was joined by the company CFO, who bought 1,800 shares at a cost just under $205,000, and who increased his stake by 16 percent. These mark the only insider buys over the past two years. Company insiders have been periodic sellers of shares otherwise.

    Overall, company insiders own about 7.9 percent of shares.

    The vacation and resort operator has seen shares lose about a quarter of their value in the past year. Revenue has been flat, and earnings are down by one-third.

    Nevertheless, shares trade at about 10 times earnings, and the company’s properties stand to increase in value over time, which should help lead shares higher. Plus, demand for vacations has remained strong this year, even as other parts of consumer spending have declined.

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  • Action to take: Investors may like shares at current prices or on any further drop. The stock yields about 2.5 percent at current prices, and has a low payout ratio for future dividend increases.

    For traders, shares are near their 52-week low, but appear to be heading higher. The October $120 calls, last going for about $3.10, can likely see mid-double-digit returns in the weeks ahead on a rally in shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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