Despite growing anxiety over an impending recession and higher interest rates forcing consumers to cut their spending budgets, especially travel budgets, insiders are making major positive moves at Playa Hotels & Resorts (PLYA).
Based in Virginia, U.S., Playa Hotels & Resorts, together with its subsidiaries, owns, develops, and operates resorts in prime beachfront locations in Mexico and the Caribbean.
On Wednesday, Director Mahmood Khimji, Chairman of Sagicor Financial Co. Ltd., was immensely positive on the stock with his informative Buy. Through Sagicor Financial, he acquired 200,000 shares of the PLYA stock in a transaction wherein Sagicor Financial spent $1.51 million at $7.54 price levels.
With the latest Buys and current holding of 10.95 million shares worth $83.01 million, Sagicor Financial now owns 6.6% of the total shares outstanding.
According to the Tipranks Insider Trading Tool, insiders at PLYA Hotels & Resorts International are clearly optimistic about the stock’s near-term prospects and have bought stock for a whopping $1.6 million over the last three months.
It is important to note that Sagicor Financial has been a major buyer of PLYA shares with a success rate of 75% and an average profit of 33.9%.
Recent Developments
Last month, the company reported stellar quarterly earnings of $0.19 per share, significantly higher than analysts’ estimates of $0.11 per share.
Similarly, revenue climbed a whopping 182.4% year-over-year to $219.57 million and outpaced the Street’s estimate by $22.81 million.
Wall Street’s Take
Overall, the Street has a Strong Buy consensus rating on the stock based on three unanimous Buys. The average Playa Hotels & Resorts price target of $13 implies an upside potential of 77.11%.
Conclusion
PLYA shares have gained 5% over the past six months, massively outperforming the benchmark indices that are down over 20% over the same period.
Further, the company’s upbeat Q1 results in May and positive commentary from CEO Bruce D. Wardinski regarding the robust bookings bode well for the stock.
Meanwhile, the recent insider Buys signal also bodes well for the company.
