JPMorgan Chase & Co. Initiates Coverage on Hilton Grand Vacations (NYSE:HGV)

Key Points

• JPMorgan initiated coverage of Hilton Grand Vacations with a “neutral” rating and a $39 price target, implying 12.68% upside from the prior close.
• Analyst sentiment remains mixed: HGV has an overall “Hold” consensus rating and an average price target of $53.10, based on four Buys, eight Holds, and one Sell.
• HGV shares opened at $34.61 and recently traded near their 12-month low, while the company approved a $600 million stock buyback covering up to 17% of outstanding shares.

Analysts at JPMorgan Chase & Co. initiated coverage on shares of Hilton Grand Vacations (NYSE:HGV - Get Free Report) in a research report issued to clients and investors on Thursday, Briefing.com reports. The brokerage set a "neutral" rating and a $39.00 price target on the stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 12.68% from the stock's previous close.

A number of other analysts have also recently issued reports on HGV. Citigroup reissued a "market outperform" rating on shares of Hilton Grand Vacations in a report on Friday, September 4th. The Goldman Sachs Group decreased their price target on Hilton Grand Vacations from $55.00 to $47.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. Susquehanna assumed coverage on shares of Hilton Grand Vacations in a report on Tuesday, August 18th. They issued a "neutral" rating and a $50.00 price target on the stock. Weiss Ratings lowered shares of Hilton Grand Vacations from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 2nd. Finally, Zacks Research cut shares of Hilton Grand Vacations from a "hold" rating to a "strong sell" rating in a research note on Monday. Four equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $53.10.

Hilton Grand Vacations Stock Down 0.3%

HGV opened at $34.61 on Thursday. The company has a 50 day moving average of $40.92 and a 200 day moving average of $45.52. 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 has a 12 month low of $33.99 and a 12 month high of $55.40. The company has a market cap of $2.69 billion, a PE ratio of 19.55, a price-to-earnings-growth ratio of 0.36 and a beta of 1.61.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $0.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.05). The company had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.38 billion. Hilton Grand Vacations had a return on equity of 20.40% and a net margin of 2.86%.The company's revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.54 EPS. On average, sell-side analysts expect that Hilton Grand Vacations will post 4.4 EPS for the current year.

Hilton Grand Vacations declared that its board has approved a stock buyback program on Thursday, August 20th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the company to purchase up to 17% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of the company's stock in a transaction dated 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 represents a 30.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of HGV. BlackRock Inc. bought a new stake in shares of Hilton Grand Vacations in the 2nd quarter worth approximately $422,842,000. Parsifal Capital Management LP bought a new stake in Hilton Grand Vacations during the 2nd quarter valued at $108,863,038. TrinityBridge Ltd bought a new stake in Hilton Grand Vacations during the 2nd quarter valued at $52,540,000. Bank of America Corp DE boosted its position in Hilton Grand Vacations by 411.4% during the 1st quarter. Bank of America Corp DE now owns 566,855 shares of the company's stock valued at $22,175,000 after buying an additional 456,008 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Hilton Grand Vacations in the 2nd quarter worth $18,750,000. 97.23% of the stock is currently owned by institutional investors.

About Hilton Grand Vacations

Hilton Grand Vacations Inc NYSE: HGV is a global vacation ownership company that develops, markets, sells and manages timeshare interests and related travel experiences. Through its vacation ownership programs, customers purchase points or interests that can be used for stays at a network of resorts and accommodations, often with access to exchange and reservation services.

The company operates a portfolio of vacation ownership brands and offerings, including Hilton Grand Vacations, Hilton Club, HGV Max and properties associated with Diamond Resorts and Bluegreen Vacations.

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