Hilton Grand Vacations (NYSE:HGV) Stock Rating Lowered by Citizens Jmp

Key Points

• Citizens JMP downgraded Hilton Grand Vacations from “market outperform” to “market perform,” while other analysts also lowered price targets or ratings. The stock has an overall “Reduce” consensus rating and a $49.80 average target price.
• Hilton Grand Vacations reported strong quarterly results, with EPS of $4.03 versus the $1.08 consensus and revenue of $1.96 billion, up 50.8% year over year.
• The company authorized a $600 million share-repurchase program, allowing it to buy back up to 17% of outstanding shares; institutional investors own 97.23% of the stock.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) was downgraded by Citizens Jmp from a "market outperform" rating to a "market perform" rating in a note issued to investors on Monday, MarketBeat Ratings reports.

A number of other brokerages also recently issued reports on HGV. Mizuho reduced their price target on Hilton Grand Vacations from $75.00 to $74.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Morgan Stanley lowered their price target on Hilton Grand Vacations from $58.00 to $54.00 and set an "equal weight" rating for the company in a report on Tuesday, August 18th. Zacks Research cut Hilton Grand Vacations from a "hold" rating to a "strong sell" rating in a report on Monday, October 5th. The Goldman Sachs Group decreased their target price on shares of Hilton Grand Vacations from $40.00 to $35.00 and set a "neutral" rating for the company in a research note on Friday. Finally, Citigroup lowered Hilton Grand Vacations from a "market outperform" rating to a "market perform" rating in a research report on Monday. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Hilton Grand Vacations currently has an average rating of "Reduce" and a consensus target price of $49.80.

Hilton Grand Vacations Price Performance

Shares of HGV stock traded up $2.76 during trading on Monday, hitting $41.20. The company had a trading volume of 1,545,087 shares, compared to its average volume of 1,000,760. The company has a quick ratio of 3.35, a current ratio of 5.15 and a debt-to-equity ratio of 5.29. The stock's 50-day moving average is $37.74 and its two-hundred day moving average is $44.61. Hilton Grand Vacations has a 52 week low of $33.99 and a 52 week high of $55.40. The stock has a market capitalization of $3.20 billion, a price-to-earnings ratio of 7.94, a price-to-earnings-growth ratio of 0.39 and a beta of 1.61.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $4.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $2.95. Hilton Grand Vacations had a net margin of 7.02% and a return on equity of 39.73%. The company had revenue of $1.96 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same period last year, the business earned $0.60 EPS. Hilton Grand Vacations's quarterly revenue was up 50.8% compared to the same quarter last year. As a group, analysts predict that Hilton Grand Vacations will post 4.48 EPS for the current fiscal year.

Hilton Grand Vacations announced that its board has authorized a share buyback plan on Thursday, August 20th that allows the company to repurchase $600 million in shares. This buyback authorization allows the company to repurchase up to 17% of its stock through open market purchases. Share buyback plans are usually an indication that the company's board believes its stock is undervalued.

Insider Transactions at Hilton Grand Vacations

In other news, insider Charles Corbin, Jr. sold 20,691 shares of the firm's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $46.90, for a total value of $970,407.90. Following the transaction, the insider directly owned 47,924 shares in the company, valued at $2,247,635.60. This trade represents a 30.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 3.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hilton Grand Vacations

A number of hedge funds and other institutional investors have recently modified their holdings of HGV. BlackRock Inc. bought a new position in shares of Hilton Grand Vacations during the second quarter worth about $422,842,000. Parsifal Capital Management LP purchased a new stake in shares of Hilton Grand Vacations in the second quarter worth about $108,863,038. TrinityBridge Ltd bought a new position in shares of Hilton Grand Vacations in the second quarter worth $52,540,000. Bank of America Corp DE increased its holdings in shares of Hilton Grand Vacations by 411.4% in the 1st quarter. Bank of America Corp DE now owns 566,855 shares of the company's stock worth $22,175,000 after buying an additional 456,008 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Hilton Grand Vacations in the second quarter valued at about $18,750,000. Institutional investors and hedge funds own 97.23% of the company's stock.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc NYSE: HGV is a global vacation ownership company that markets and sells vacation intervals, points-based memberships and related travel experiences. Its portfolio includes branded vacation ownership resorts and accommodations in popular leisure destinations, with products designed to provide members with recurring access to vacation properties.

The company also provides resort management, reservation and customer services, financing for vacation ownership purchases, and exchange and travel-planning services.