JPMorgan Chase & Co. Has Lowered Expectations for Hilton Grand Vacations (NYSE:HGV) Stock Price

Key Points

• JPMorgan lowered Hilton Grand Vacations’ price target from $39 to $38 while maintaining a neutral rating, implying roughly 1.26% downside from the reported share price.
• Analyst sentiment remains mixed-to-cautious: the stock has a consensus “Hold” rating and a $49.80 average price target, with four Buy, six Hold, and three Sell ratings.
• Despite the cautious outlook, Hilton Grand Vacations reported strong quarterly results, including $4.03 in EPS versus the $1.08 consensus and revenue growth of 50.8% year over year. The company also authorized a $600 million share repurchase plan.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) had its price target cut by stock analysts at JPMorgan Chase & Co. from $39.00 to $38.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price would indicate a potential downside of 1.26% from the company's current price.

Other research analysts have also issued reports about the stock. Wall Street Zen lowered shares of Hilton Grand Vacations from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Zacks Research downgraded Hilton Grand Vacations from a "hold" rating to a "strong sell" rating in a report on Monday, October 5th. Citigroup restated a "market outperform" rating on shares of Hilton Grand Vacations in a research note on Friday, September 4th. 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. Finally, Mizuho dropped their price target on shares of Hilton Grand Vacations from $75.00 to $74.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Hilton Grand Vacations presently has a consensus rating of "Hold" and a consensus target price of $49.80.

Hilton Grand Vacations Stock Performance

Shares of Hilton Grand Vacations stock traded up $2.78 on Friday, reaching $38.49. 1,877,914 shares of the stock were exchanged, compared to its average volume of 998,713. The firm has a market capitalization of $2.99 billion, a PE ratio of 21.74, a PEG ratio of 0.36 and a beta of 1.61. The business has a fifty day moving average price of $37.74 and a two-hundred day moving average price of $44.61. Hilton Grand Vacations has a 1-year low of $33.99 and a 1-year high of $55.40. The company has a current ratio of 5.02, a quick ratio of 3.20 and a debt-to-equity ratio of 6.18.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $4.03 EPS for the quarter, topping analysts' consensus estimates of $1.08 by $2.95. Hilton Grand Vacations had a net margin of 2.86% and a return on equity of 20.40%. The firm had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the previous year, the firm earned $0.60 earnings per share. The firm's revenue was up 50.8% on a year-over-year basis. As a group, research analysts anticipate that Hilton Grand Vacations will post 4.48 earnings per share for the current fiscal year.

Hilton Grand Vacations declared that its Board of Directors has initiated a share buyback plan on Thursday, August 20th that authorizes the company to repurchase $600 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 17% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at Hilton Grand Vacations

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of the business's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $46.90, for a total value of $970,407.90. Following the sale, the insider directly owned 47,924 shares in the company, valued at approximately $2,247,635.60. The trade was a 30.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.10% of the stock is owned by corporate insiders.

Institutional Trading of Hilton Grand Vacations

Hedge funds have recently bought and sold shares of the company. Persistent Asset Partners Ltd purchased a new position in shares of Hilton Grand Vacations during the second quarter valued at $63,000. Leonteq Securities AG lifted its stake in shares of Hilton Grand Vacations by 189.7% in the 1st quarter. Leonteq Securities AG now owns 672 shares of the company's stock valued at $26,000 after purchasing an additional 440 shares during the last quarter. Nykredit A S acquired a new position in shares of Hilton Grand Vacations during the 2nd quarter valued at about $38,000. Allworth Financial LP acquired a new position in Hilton Grand Vacations during the second quarter valued at approximately $43,000. Finally, Public Employees Retirement System of Ohio acquired a new position in Hilton Grand Vacations in the 2nd quarter valued at $85,000. 97.23% of the stock is owned by hedge funds and other institutional investors.

Key Hilton Grand Vacations News

Here are the key news stories impacting Hilton Grand Vacations this week:

• Positive Sentiment: Accelerated share buyback: HGV entered into an uncollared $200 million accelerated share-repurchase agreement with Deutsche Bank. The program should reduce shares outstanding, potentially support earnings per share, and signal management’s confidence in the stock’s valuation. Hilton Grand Vacations Starts Accelerated Share Buyback
• Positive Sentiment: Strong third-quarter earnings: Hilton Grand Vacations reported adjusted earnings of $4.03 per share, far above the $1.08 analyst consensus and up from $0.60 a year earlier. Revenue reached $1.96 billion versus the $1.39 billion estimate, increasing 50.8% year over year. The large earnings and revenue beats are the primary catalyst for the stock’s advance. Hilton Grand Vacations Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Updated outlook: Management forecast 2026 adjusted EBITDA of approximately $1.165 billion to $1.180 billion following a guidance reset, giving investors a clearer view of expected profitability. Hilton Grand Vacations Forecasts 2026 Adjusted EBITDA
• Neutral Sentiment: HGV appointed Mike Riley as executive vice president and chief sales and marketing officer. The change could influence future sales execution, but its near-term financial impact is unclear. Hilton Grand Vacations Appoints Mike Riley

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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