Hilton Grand Vacations (NYSE:HGV) Stock Rating Raised to Hold at Zacks Research

Key Points

• Zacks Research upgraded Hilton Grand Vacations from “strong sell” to “hold.” The analyst consensus is also “hold,” with an average price target of $49.10.
• The company reported quarterly EPS of $4.03, well above the $1.08 consensus estimate, while revenue rose 50.8% year over year to $1.96 billion.
• Hilton Grand Vacations authorized a $600 million share repurchase program, allowing it to buy back up to 17% of its outstanding shares; an insider also purchased 12,200 shares in November.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Tuesday, Zacks reports.

A number of other brokerages have also recently issued reports on HGV. The Goldman Sachs Group lowered their price objective on Hilton Grand Vacations from $40.00 to $35.00 and set a "neutral" rating for the company in a research note on Friday, October 30th. Truist Financial reduced their price target on Hilton Grand Vacations from $71.00 to $69.00 and set a "buy" rating for the company in a report on Thursday, September 10th. Wells Fargo & Company lowered their price target on Hilton Grand Vacations from $51.00 to $38.00 and set a "cautious" rating for the company in a research report on Monday, October 19th. Susquehanna dropped their price target on shares of Hilton Grand Vacations from $50.00 to $39.00 and set a "neutral" rating on the stock in a research note on Thursday, October 15th. Finally, Wall Street Zen downgraded shares of Hilton Grand Vacations from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Two analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $49.10.

Hilton Grand Vacations Price Performance

Shares of HGV opened at $43.89 on Tuesday. Hilton Grand Vacations has a fifty-two week low of $33.99 and a fifty-two week high of $55.40. The firm's 50-day simple moving average is $37.57 and its two-hundred day simple moving average is $44.53. The stock has a market cap of $3.33 billion, a PE ratio of 8.46, a price-to-earnings-growth ratio of 0.30 and a beta of 1.60. The company has a debt-to-equity ratio of 5.29, a quick ratio of 3.35 and a current ratio of 5.15.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last released its earnings results on Thursday, October 29th. The company reported $4.03 earnings per share (EPS) for the quarter, beating 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 firm 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 earnings per share. The business's revenue was up 50.8% on a year-over-year basis. Analysts anticipate that Hilton Grand Vacations will post 6.38 earnings per share for the current fiscal year.

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

Insider Buying and Selling at Hilton Grand Vacations

In other Hilton Grand Vacations news, insider Mark Wang purchased 12,200 shares of the stock in a transaction dated Monday, November 2nd. The shares were purchased at an average cost of $40.92 per share, with a total value of $499,224.00. Following the completion of the acquisition, the insider directly owned 916,715 shares in the company, valued at $37,511,977.80. This trade represents a 1.35% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 3.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Hilton Grand Vacations

Several hedge funds and other institutional investors have recently bought and sold shares of HGV. Fulcrum Asset Management LLP boosted its stake in shares of Hilton Grand Vacations by 58.2% in the 3rd quarter. Fulcrum Asset Management LLP now owns 5,180 shares of the company's stock worth $185,000 after buying an additional 1,906 shares during the last quarter. Allspring Global Investments Holdings LLC increased its position in Hilton Grand Vacations by 4.4% during the third quarter. Allspring Global Investments Holdings LLC now owns 24,070 shares of the company's stock valued at $838,000 after acquiring an additional 1,018 shares during the last quarter. Covestor Ltd increased its position in Hilton Grand Vacations by 17.3% during the third quarter. Covestor Ltd now owns 1,800 shares of the company's stock valued at $62,000 after acquiring an additional 265 shares during the last quarter. State of Wyoming lifted 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 valued at $354,000 after acquiring an additional 4,278 shares during the period. Finally, Iridian Asset Management LLC CT lifted 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 valued at $24,666,000 after acquiring an additional 251,068 shares during the period. Institutional investors own 97.23% of the company's stock.

About Hilton Grand Vacations

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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