MAR Moves Lower on Revenue Miss

The stock has found a floor at the $140 level over the past few months

Deputy Editor
May 10, 2021 at 10:44 AM
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The shares of Marriott International Inc (NASDAQ:MAR) are down 3% to trade at $142.33 at last check, after the company's first-quarter report. The hotel name announced earnings of 10 cents per share, which is higher than the 3 cents expected by analysts. However, Marriot's revenue came in below expectations, putting pressure on the stock today.

MAR has been middling on the charts since late February, with several pullbacks caught by a consistent floor at the $140 level. Long-term support at the 80-day moving average swooped in to join that trendline last week as well. Year-to-date, the equity is up 8%. 

Analysts are split on Marriott stock. Of the 17 in coverage, eight carry a "strong buy" rating, while the remaining nine sport a tepid "hold." Meanwhile, the 12-month consensus price target of $143.67 is a 2.1% discount to last night's close. 

Over in the options pits, MAR sports a 50-day call/put volume ratio of 2.01 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 86% of readings from the past year, indicating a stronger-than-usual penchant for calls of late.

Today, options traders have been quick to chime in, with overall volume running at three times what's typically seen at this point. So far, MAR has seen 2,251 calls and 1,273 puts cross the tape. The July 150 call is the most popular, followed by the weekly 5/14 105-strike put, with new positions being opened at the latter.

That said, speculating on the equity's next move with options could be a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 37% stands higher than just 15% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

 

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