Vail Resorts, Inc. (NYSE:MTN) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts rate Vail Resorts “Hold” on average: Of 15 analysts, eight recommend holding the stock, five rate it a buy and two rate it a sell. The average 12-month price target is $149.83, with recent target cuts from Barclays, Deutsche Bank and Stifel.
• Operating results weakened: Vail Resorts reported quarterly earnings of $8.81 per share, below the $8.97 consensus estimate, while revenue fell 7% year over year to $1.21 billion. The stock opened at $132.54, down 3.2% in the reported session.
• The dividend is substantial but exceeds earnings: The company paid a quarterly dividend of $2.22, or $8.88 annualized, representing a 6.7% yield and a payout ratio of 201.82%. Institutional investors own approximately 94.9% of the shares.

Shares of Vail Resorts, Inc. (NYSE:MTN - Get Free Report) have been assigned a consensus recommendation of "Hold" from the fifteen research firms that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have given a buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $149.8333.

Several analysts have recently commented on MTN shares. Barclays lowered their target price on shares of Vail Resorts from $138.00 to $119.00 and set an "underweight" rating for the company in a report on Tuesday, June 9th. Weiss Ratings raised shares of Vail Resorts from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday. The Goldman Sachs Group initiated coverage on shares of Vail Resorts in a research note on Thursday, August 13th. They issued a "sell" rating and a $132.00 price objective for the company. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Vail Resorts from $143.00 to $134.00 and set a "hold" rating on the stock in a research report on Tuesday, June 9th. Finally, Stifel Nicolaus cut their target price on Vail Resorts from $172.00 to $167.00 and set a "buy" rating on the stock in a research note on Tuesday, June 9th.

Vail Resorts Stock Down 3.2%

Shares of NYSE:MTN opened at $132.54 on Wednesday. The stock has a market cap of $4.72 billion, a price-to-earnings ratio of 30.12, a PEG ratio of 9.03 and a beta of 0.69. The company has a quick ratio of 0.79, a current ratio of 0.91 and a debt-to-equity ratio of 3.22. Vail Resorts has a 12-month low of $118.51 and a 12-month high of $163.34. The business's 50 day moving average is $146.20 and its 200 day moving average is $137.05.

Vail Resorts (NYSE:MTN - Get Free Report) last released its quarterly earnings results on Monday, June 8th. The company reported $8.81 EPS for the quarter, missing analysts' consensus estimates of $8.97 by ($0.16). The company had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.20 billion. Vail Resorts had a net margin of 5.38% and a return on equity of 21.88%. The company's quarterly revenue was down 7.0% compared to the same quarter last year. During the same period in the previous year, the company posted $10.54 earnings per share. On average, sell-side analysts forecast that Vail Resorts will post 4.32 earnings per share for the current fiscal year.

Vail Resorts Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 25th were given a $2.22 dividend. The ex-dividend date of this dividend was Thursday, June 25th. This represents a $8.88 annualized dividend and a yield of 6.7%. Vail Resorts's payout ratio is currently 201.82%.

Institutional Investors Weigh In On Vail Resorts

Several large investors have recently made changes to their positions in the business. Bamco Inc. NY purchased a new position in shares of Vail Resorts in the 2nd quarter worth about $889,971,000. California State Teachers Retirement System grew its position in Vail Resorts by 12,999.3% during the second quarter. California State Teachers Retirement System now owns 5,519,521 shares of the company's stock valued at $751,483,000 after buying an additional 5,477,385 shares during the period. BlackRock Inc. purchased a new stake in Vail Resorts during the second quarter worth about $464,712,000. Capital World Investors increased its holdings in Vail Resorts by 6.1% during the fourth quarter. Capital World Investors now owns 3,196,445 shares of the company's stock worth $424,488,000 after buying an additional 182,982 shares during the last quarter. Finally, Oasis Management Co Ltd. raised its position in Vail Resorts by 8.3% in the fourth quarter. Oasis Management Co Ltd. now owns 1,851,234 shares of the company's stock worth $245,844,000 after acquiring an additional 141,500 shares during the period. 94.90% of the stock is owned by hedge funds and other institutional investors.

Vail Resorts Company Profile

Vail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company's signature Epic Pass program offers skiers and snowboarders season‐long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.

Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.

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