Marriott Stock Takes a Breather Following Q4 Revenue Miss

The company also reported its first annual loss in over a decade

Assistant Editor
Feb 18, 2021 at 9:24 AM
facebook twitter linkedin

The shares of Marriott International Inc (NASDAQ:MAR), are marginally lower, despite the company reporting better-than-expected fourth-quarter earnings. Dragging the equity is down is the company's revenue, which missed Wall Street's forecasts as the hotel operating giant continues to struggle amid the Covid-19 pandemic. Additionally, Marriot reported a $267 million loss in 2020, the company's first annual loss since 2009. Ahead of the opening bell, MAR is down 0.3% to trade at $130.92.

On the charts, MAR has notched three straight gains this week, slowly working its way toward the $134 level -- an area the equity briefly broke above in early December. The 50-day moving average has stepped back up as a level of support for Marriott stock, though the security has shed 9.4% year-over-year.

Analysts are less than optimistic toward MAR, as 10 of the 17 in coverage recommend a tepid "hold," though the remaining seven do sport a "strong buy" rating. Meanwhile, the 12-month consensus price target of $128.97 is a 1.8% discount to last night's close. 

The options pits have been bullish during the past 10 weeks. MAR's 50-day call/put volume ratio of 1.28 at the Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 89% of all readings from the last year. This means long calls are being picked up at a much faster-than-usual rate.  

And it looks like options may be a good way to go when weighing in on the hotel stock's next move. Marriott's Schaeffer's Volatility Index (SVI) 43% stands higher than just 9% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

Bernie's Best Stock Bets for Summer 2021



Special Offers from Schaeffer's Trading Partners