Hilton Grand Vacations (NYSE:HGV) Stock Gets Price Target Cut from Barclays

Key Points

• Barclays cut Hilton Grand Vacations’ price target from $46 to $39 while maintaining an “equal weight” rating, implying roughly 4.8% downside from the reported share price.
• Analyst sentiment has weakened broadly: Citigroup downgraded the stock, while JPMorgan, Morgan Stanley, and Goldman Sachs also lowered their targets. MarketBeat reports an average rating of “Reduce” and a consensus price target of $49.10.
• Despite the cautious outlook, Hilton Grand Vacations reported quarterly revenue of $1.96 billion and EPS of $4.03, both above estimates, and authorized a $600 million share buyback covering up to 17% of outstanding shares.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) had its price target decreased by equities research analysts at Barclays from $46.00 to $39.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Barclays's price objective indicates a potential downside of 4.80% from the company's current price.

Several other research firms also recently issued reports on HGV. Citigroup downgraded shares of Hilton Grand Vacations from a "market outperform" rating to a "market perform" rating in a report on Monday. JPMorgan Chase & Co. decreased their price objective on Hilton Grand Vacations from $39.00 to $38.00 and set a "neutral" rating on the stock in a report on Friday. Morgan Stanley lowered their price objective on Hilton Grand Vacations from $58.00 to $54.00 and set an "equal weight" rating on the stock in a research report on Tuesday, August 18th. The Goldman Sachs Group cut their target price on Hilton Grand Vacations from $40.00 to $35.00 and set a "neutral" rating for the company in a research note on Friday. Finally, Wall Street Zen lowered Hilton Grand Vacations from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $49.10.

Hilton Grand Vacations Price Performance

Shares of HGV traded up $2.53 during trading hours on Monday, hitting $40.97. 2,969,104 shares of the company were exchanged, compared to its average volume of 1,004,115. The company has a debt-to-equity ratio of 5.29, a current ratio of 5.15 and a quick ratio of 3.35. The company has a market capitalization of $3.18 billion, a PE ratio of 7.89, a PEG ratio of 0.39 and a beta of 1.61. The firm has a fifty day simple moving average of $37.74 and a 200-day simple moving average of $44.61. Hilton Grand Vacations has a one year low of $33.99 and a one year high of $55.40.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last announced its quarterly earnings data 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 return on equity of 39.73% and a net margin of 7.02%. The firm had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the prior year, the business earned $0.60 EPS. The business's revenue for the quarter was up 50.8% on a year-over-year basis. As a group, sell-side analysts predict that Hilton Grand Vacations will post 4.48 earnings per share for the current year.

Hilton Grand Vacations announced that its board has approved a share buyback program on Thursday, August 20th that allows the company to buy back $600 million in outstanding shares. This buyback authorization allows the company to reacquire up to 17% of its shares through open market purchases. Share buyback programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $46.90, for a total transaction of $970,407.90. Following the completion of the transaction, the insider owned 47,924 shares of the company's stock, valued at $2,247,635.60. This represents a 30.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 3.10% of the company's stock.

Hedge Funds Weigh In On Hilton Grand Vacations

Several institutional investors and hedge funds have recently made changes to their positions in HGV. Covestor Ltd increased its stake in shares of Hilton Grand Vacations by 17.3% in the 3rd quarter. Covestor Ltd now owns 1,800 shares of the company's stock valued at $62,000 after acquiring an additional 265 shares in the last quarter. State of Wyoming grew its holdings in Hilton Grand Vacations by 71.9% in the third quarter. State of Wyoming now owns 10,226 shares of the company's stock worth $354,000 after purchasing an additional 4,278 shares during the period. Iridian Asset Management LLC CT grew its holdings in Hilton Grand Vacations by 54.5% in the third quarter. Iridian Asset Management LLC CT now owns 711,664 shares of the company's stock worth $24,666,000 after purchasing an additional 251,068 shares during the period. Sterling Capital Management LLC increased its stake in Hilton Grand Vacations by 912.6% in the third quarter. Sterling Capital Management LLC now owns 2,015 shares of the company's stock valued at $70,000 after purchasing an additional 1,816 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its stake in Hilton Grand Vacations by 63.3% in the third quarter. State of Alaska Department of Revenue now owns 9,611 shares of the company's stock valued at $333,000 after purchasing an additional 3,727 shares in the last quarter. 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.

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