Stifel Nicolaus Forecasts Strong Price Appreciation for Wyndham Hotels & Resorts (NYSE:WH) Stock

Key Points

• Stifel Nicolaus raised Wyndham Hotels & Resorts’ price target to $99 from $98 and maintained a “buy” rating, implying 26.83% potential upside. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $95.17.
• Wyndham exceeded quarterly expectations with $410 million in revenue and $1.43 adjusted EPS versus the $1.32 consensus, while revenue increased 7.3% year over year. However, adjusted EBITDA and EPS declined from the prior-year quarter, and international RevPAR fell 3%.
• The company authorized a $400 million share-repurchase program, allowing it to buy back up to 7.6% of outstanding shares; institutional investors own 93.46% of the stock.

Wyndham Hotels & Resorts (NYSE:WH - Get Free Report) had its price target hoisted by stock analysts at Stifel Nicolaus from $98.00 to $99.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Stifel Nicolaus' price objective would suggest a potential upside of 26.83% from the company's current price.

WH has been the subject of several other reports. JPMorgan Chase & Co. decreased their price target on shares of Wyndham Hotels & Resorts from $100.00 to $97.00 and set an "overweight" rating for the company in a research report on Tuesday, July 21st. Morgan Stanley raised their price target on shares of Wyndham Hotels & Resorts from $91.00 to $92.00 and gave the company an "overweight" rating in a research note on Monday, October 12th. Weiss Ratings reiterated a "hold (c)" rating on shares of Wyndham Hotels & Resorts in a report on Friday, October 2nd. Susquehanna cut their price target on shares of Wyndham Hotels & Resorts from $90.00 to $80.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. Finally, Wells Fargo & Company boosted their price objective on shares of Wyndham Hotels & Resorts from $96.00 to $98.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 16th. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $95.17.

Wyndham Hotels & Resorts Stock Performance

NYSE:WH opened at $78.06 on Thursday. The stock has a market cap of $5.79 billion, a P/E ratio of 28.70, a price-to-earnings-growth ratio of 2.00 and a beta of 0.67. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 5.53. The stock's 50-day moving average is $72.34 and its 200-day moving average is $77.88. Wyndham Hotels & Resorts has a 1-year low of $66.87 and a 1-year high of $90.35.

Wyndham Hotels & Resorts (NYSE:WH - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The company reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.32 by $0.11. Wyndham Hotels & Resorts had a net margin of 14.67% and a return on equity of 74.22%. The business had revenue of $410.00 million during the quarter, compared to analyst estimates of $408.99 million. During the same quarter last year, the business earned $1.46 EPS. The firm's quarterly revenue was up 7.3% on a year-over-year basis. Equities research analysts anticipate that Wyndham Hotels & Resorts will post 4.81 earnings per share for the current year.

Wyndham Hotels & Resorts declared that its board has initiated a stock repurchase program on Tuesday, September 29th that permits the company to repurchase $400.00 million in outstanding shares. This buyback authorization permits the company to buy up to 7.6% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insider Activity

In other news, CEO Geoffrey Ballotti sold 19,414 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $72.71, for a total value of $1,411,591.94. Following the sale, the chief executive officer directly owned 549,323 shares of the company's stock, valued at approximately $39,941,275.33. This represents a 3.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.33% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Fifth Third Wealth Advisors LLC grew its stake in Wyndham Hotels & Resorts by 4.4% during the first quarter. Fifth Third Wealth Advisors LLC now owns 3,043 shares of the company's stock worth $247,000 after purchasing an additional 129 shares during the period. GAMMA Investing LLC increased its holdings in Wyndham Hotels & Resorts by 14.2% in the second quarter. GAMMA Investing LLC now owns 1,858 shares of the company's stock worth $156,000 after purchasing an additional 231 shares in the last quarter. State of Michigan Retirement System lifted its stake in Wyndham Hotels & Resorts by 1.7% in the first quarter. State of Michigan Retirement System now owns 18,153 shares of the company's stock valued at $1,475,000 after buying an additional 300 shares during the period. Oregon Public Employees Retirement Fund lifted its stake in Wyndham Hotels & Resorts by 2.7% in the first quarter. Oregon Public Employees Retirement Fund now owns 15,472 shares of the company's stock valued at $1,257,000 after buying an additional 400 shares during the period. Finally, Continuum Advisory LLC acquired a new position in Wyndham Hotels & Resorts in the second quarter valued at approximately $36,000. 93.46% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Wyndham Hotels & Resorts

Here are the key news stories impacting Wyndham Hotels & Resorts this week:

• Positive Sentiment: Wyndham reported third-quarter revenue of $410 million, up 7.3% year over year and slightly ahead of analysts’ expectations. Adjusted EPS of $1.43 exceeded the $1.32 consensus estimate. Wyndham Hotels Q3 Earnings Surpass Estimates
• Positive Sentiment: The company raised its full-year 2026 outlook for global RevPAR growth, adjusted EBITDA and adjusted diluted EPS. The EPS forecast was increased to $4.84-$4.92, while revenue guidance remained $1.48-$1.50 billion. Wyndham Reports Strong Third Quarter Results
• Positive Sentiment: Operating trends were favorable in the United States: U.S. RevPAR rose 6% year over year, the hotel system expanded 4%, and Wyndham returned $123 million to shareholders through buybacks and dividends. Wyndham Reports Third-Quarter Revenue as U.S. RevPAR Rises
• Neutral Sentiment: Robert W. Baird maintained its Buy rating, providing continued analyst support for WH ahead of and following the earnings report. Baird Maintains Buy Rating
• Negative Sentiment: Despite the revenue increase, adjusted EBITDA declined to $207 million from $213 million and year-over-year EPS fell from $1.46. Global RevPAR increased only 2% in constant currency, while international RevPAR declined 3%. Wyndham Q3 Adjusted Earnings Fall
• Negative Sentiment: Insider-selling activity may weigh on sentiment: CEO Geoffrey Ballotti has sold shares in recent months, including 19,295 shares in the latest reported transaction, with no disclosed insider purchases. Insider Geoffrey Ballotti Sells Shares

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc is a global hotel franchising company that operates an asset-light lodging business. Rather than owning and managing most of its hotels, the company licenses its brands and provides franchisees with support in areas such as marketing, reservations, technology, training and operational standards.

Its portfolio includes a range of economy, midscale and upscale hotel brands, including Super 8, Days Inn, Ramada, La Quinta, Microtel, Baymont, Wingate, AmericInn, Wyndham, Wyndham Garden, Registry Collection Hotels and ECHO Suites Extended Stay by Wyndham.

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