What Happened?
Shares of vacation ownership company Marriott Vacations (NYSE:VAC) jumped 6.1% in the afternoon session after the company announced the departure of its President and CEO, John Geller, and a plan to buy back shares. The departure was made at the request of the company's board. In a move that signaled confidence, the company also announced plans to repurchase shares under its remaining $347 million program, with both the board and management stating their belief that the company's shares were undervalued. Matthew E. Avril, an independent director with over 30 years of experience in the industry, was appointed as the Interim President and CEO while the board began its search for a permanent replacement. Alongside these changes, Marriott Vacations reaffirmed its 2025 guidance but postponed its planned Investor Day.
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What Is The Market Telling Us
Marriott Vacations’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 20.8% on the news that the company reported mixed third-quarter 2025 results that saw it miss Wall Street's revenue and profitability expectations, although it did beat on adjusted earnings per share. The vacation ownership company's revenue fell 3.2% year-over-year to $1.26 billion, missing analyst estimates of $1.32 billion. Profitability was also a point of concern as Adjusted EBITDA, a measure of profit that excludes items like interest and taxes, came in at $170 million, nearly 8% below consensus. While the company's adjusted earnings per share of $1.69 was 5.6% ahead of expectations, the market appeared to focus on the top-line weakness and a miss on the number of conducted tours. Looking ahead, the company provided a mixed forecast, raising its full-year adjusted EPS guidance by 2.2% but issuing full-year EBITDA guidance that was below analyst expectations. The stock traded down significantly following the report.
Marriott Vacations is down 42.5% since the beginning of the year, and at $50.24 per share, it is trading 49.4% below its 52-week high of $99.25 from November 2024. Investors who bought $1,000 worth of Marriott Vacations’s shares 5 years ago would now be looking at an investment worth $388.16.
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