Richard Tuttle, a director at Hyatt Hotels Corp (H), recently bought 1,250 shares. The buy increased his holdings by 4 percent, and came to a total cost of $130,615.
This marks the first insider buy at the company since December 2021. A number of company directors and executives have been periodic sellers of shares over the past two years, with about half of those trades coming from the exercise of stock options.
Overall, company insiders own about 2.2 percent of shares.
The hotel chain is up about 23 percent over the past year, beating out the stock market by about 8 points. Plus, hotel stocks held up well on Wednesday thanks to an update on room rates from competitor Marriott (MAR).
Shares look reasonably valued at about 20 times earnings, especially with revenues up about 10 percent over the past year and likely to continue higher.
Action to take: Investors may like shares here or on any further market weakness. Hyatt has a strong brand, and can likely continue to keep and grow its market share in the hotel space over time. At the moment, shares yield about 0.6 percent.
For traders, shares can likely continue higher into the end of the year. The January 2024 $110 calls, last going for about $4.80, could show traders mid-double-digit gains or better in the months ahead.
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.