Hyatt Hotels shares fall the most in 1 1/2 weeks on Tuesday, 1 300 employees to be laid off as pandemic bites

Hyatt Hotels Corp (H) said earlier this week that it would lay off 1 300 of its employees across the globe in an attempt to handle the COVID-19 crisis, which has crippled international travel.

Shares of Hyatt Hotels Corp closed lower for a second consecutive trading session in New York on Tuesday. It has also been the steepest single-session loss since May 1st. The stock went down 5.92% ($2.96) to $47.02, after touching an intraday low at $47.00, or a price level not seen since April 6th ($42.90).

Shares of Hyatt Hotels Corporation have retreated 47.59% so far this year, following a 32.71% gain in 2019.

Last week Hyatt Hotels reported a larger-than-anticipated loss for the latest fiscal quarter, while suspending its dividend and share repurchase program.

The company has also reduced remuneration for senior management, board members and all employees in relation with a restructuring plan.

“Due to the historic drop in travel demand and the expected slow pace of recovery, Hyatt has made the extremely difficult decision to implement layoffs and restructure roles across its global corporate functions, beginning June 1, 2020,” the hotel chain said in a statement, cited by Reuters.

Data by Refinitiv Eikon showed that 55 000 people had been employed with Hyatt as of December 31st 2019.

Analyst stock price forecast and recommendation

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Hyatt Hotels Corp’s stock price, have a median target of $53.25, with a high estimate of $73.00 and a low estimate of $46.00. The median estimate represents a 13.25% upside compared to the closing price of $47.02 on May 12th.

The same media also reported that at least 15 out of 19 surveyed investment analysts had rated Hyatt Hotels Corp’s stock as “Hold”, while 2 – as “Buy”.