Marriott Vacations Worldwide Corporation (VAC) - What Are Analysts Saying About This Stock?

Key Points

• Analyst sentiment is mixed: Fourteen analysts give Marriott Vacations Worldwide a consensus “Hold” rating, with eight buys, four holds and two sells; the average one-year price target is $111.91.
• Quarterly results were mixed: Earnings per share of $2.64 beat estimates of $2.57, while revenue of $1.37 billion fell short of expectations; revenue nevertheless rose 8.2% year over year.
• Recent operating indicators were positive, with third-quarter contract sales up 29% year over year to $565 million and volume per guest up 30% to $4,822. Analysts’ target changes were varied: some maintained positive ratings despite modest cuts, while Wells Fargo kept an Underweight rating.

Marriott Vacations Worldwide Corporation (NYSE:VAC - Get Free Report) has earned a consensus rating of "Hold" from the fourteen research firms that are presently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and eight have assigned a buy rating to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $111.91.

VAC has been the subject of several research reports. Weiss Ratings upgraded shares of Marriott Vacations Worldwide from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, November 2nd. Barclays decreased their target price on Marriott Vacations Worldwide from $140.00 to $139.00 and set an "overweight" rating on the stock in a research report on Thursday. Susquehanna upped their target price on Marriott Vacations Worldwide from $110.00 to $115.00 and gave the company a "neutral" rating in a research report on Thursday, October 15th. Wall Street Zen upgraded Marriott Vacations Worldwide from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $132.00 price target on shares of Marriott Vacations Worldwide in a report on Friday, August 7th.

Marriott Vacations Worldwide Price Performance

NYSE:VAC opened at $110.47 on Monday. The company has a market cap of $3.80 billion, a P/E ratio of -14.87, a P/E/G ratio of 2.36 and a beta of 1.31. The firm's fifty day moving average price is $106.35 and its two-hundred day moving average price is $87.54. Marriott Vacations Worldwide has a one year low of $44.58 and a one year high of $131.34. The company has a debt-to-equity ratio of 2.55, a current ratio of 3.78 and a quick ratio of 3.18.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) last posted its earnings results on Wednesday, November 4th. The company reported $2.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.57 by $0.07. The company had revenue of $1.37 billion during the quarter, compared to analysts' expectations of $1.42 billion. Marriott Vacations Worldwide had a negative net margin of 4.75% and a positive return on equity of 14.36%. Marriott Vacations Worldwide's quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter last year, the company posted $1.69 EPS. Equities analysts expect that Marriott Vacations Worldwide will post 9.07 earnings per share for the current year.

Marriott Vacations Worldwide Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were given a dividend of $0.80 per share. The ex-dividend date was Wednesday, September 16th. This represents a $3.20 annualized dividend and a yield of 2.9%. Marriott Vacations Worldwide's dividend payout ratio (DPR) is presently -43.07%.

Marriott Vacations Worldwide News Summary

Here are the key news stories impacting Marriott Vacations Worldwide this week:

• Positive Sentiment: Contract sales rose 29% year over year to $565 million in the third quarter, while volume per guest increased 30% to $4,822. These operating gains support the long-term growth case. Marriott Vacations: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: A Zacks article highlighted VAC as a potential long-term growth stock, drawing on its stock-style scoring framework. Why Marriott Vacations Worldwide Is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Barclays lowered its target from $140 to $139 but maintained an Overweight rating; JPMorgan trimmed its target from $125 to $124 and also remained Overweight. The modest cuts temper, but do not reverse, their positive stance. Barclays price target update
• Negative Sentiment: Wells Fargo cut its target from $100 to $97 and kept an Underweight rating, signaling downside risk in its view. Wells Fargo price target update

Insiders Place Their Bets

In other news, Director Christian Asmar sold 750,000 shares of Marriott Vacations Worldwide stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $111.49, for a total transaction of $83,617,500.00. Following the completion of the sale, the director owned 3,380,818 shares of the company's stock, valued at approximately $376,927,398.82. This trade represents a 18.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Kathleen A. Pighini sold 2,500 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $120.00, for a total transaction of $300,000.00. Following the completion of the sale, the insider directly owned 10,821 shares of the company's stock, valued at approximately $1,298,520. The trade was a 18.77% decrease in their position. The SEC filing for this sale provides additional information. 13.30% of the stock is currently owned by company insiders.

Institutional Trading of Marriott Vacations Worldwide

A number of institutional investors have recently bought and sold shares of VAC. Quantinno Capital Management LP grew its holdings in shares of Marriott Vacations Worldwide by 12.3% during the 1st quarter. Quantinno Capital Management LP now owns 474,037 shares of the company's stock worth $30,869,000 after purchasing an additional 52,007 shares in the last quarter. Penn Capital Management Company LLC increased its position in shares of Marriott Vacations Worldwide by 23.4% in the third quarter. Penn Capital Management Company LLC now owns 200,801 shares of the company's stock worth $20,576,000 after purchasing an additional 38,061 shares during the period. Bank of New York Mellon Corp acquired a new position in Marriott Vacations Worldwide in the second quarter valued at about $17,975,000. Ancora Advisors LLC acquired a new position in Marriott Vacations Worldwide in the second quarter valued at about $16,002,000. Finally, Bamco Inc. NY bought a new stake in Marriott Vacations Worldwide during the second quarter worth about $14,751,000. Institutional investors own 89.52% of the company's stock.

Marriott Vacations Worldwide Company Profile

Marriott Vacations Worldwide Corporation is a global vacation ownership and leisure company. It develops, markets and sells vacation ownership interests, and operates and manages resorts and related vacation programs. Its portfolio includes Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club and other vacation ownership brands.

The company also offers vacation exchange, rental and membership services, including through Interval International. Its resorts and programs serve travelers in destinations across the Americas, the Caribbean, Europe and the Asia-Pacific region.

Marriott Vacations Worldwide became an independent, publicly traded company after its 2011 spin-off from Marriott International.

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