Hilton Grand Vacations Inc. $HGV is Apollo Management Holdings L.P.'s 4th Largest Position

Key Points

• Apollo Management Holdings cut its Hilton Grand Vacations stake by 31.5%, selling 5.75 million shares, but still owns 12.5 million shares worth approximately $654.4 million—16.08% of HGV and Apollo’s fourth-largest portfolio position.
• Analyst sentiment is largely neutral: HGV has a consensus “Hold” rating from 11 analysts, with an average price target of $54.89.
• Hilton Grand Vacations missed quarterly earnings and revenue estimates, though revenue rose 7.3% year over year. The company also authorized a $600 million share repurchase plan, covering up to 17% of outstanding shares.

Apollo Management Holdings L.P. reduced its position in Hilton Grand Vacations Inc. (NYSE:HGV - Free Report) by 31.5% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 12,495,825 shares of the company's stock after selling 5,750,000 shares during the quarter. Hilton Grand Vacations comprises about 7.3% of Apollo Management Holdings L.P.'s investment portfolio, making the stock its 4th biggest position. Apollo Management Holdings L.P. owned 16.08% of Hilton Grand Vacations worth $654,406,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in HGV. BlackRock Inc. acquired a new stake in shares of Hilton Grand Vacations in the second quarter worth $422,842,000. Dimensional Fund Advisors LP boosted its stake in shares of Hilton Grand Vacations by 1.6% in the first quarter. Dimensional Fund Advisors LP now owns 3,869,731 shares of the company's stock valued at $151,375,000 after purchasing an additional 60,624 shares during the period. Mudita Advisors LLP increased its stake in Hilton Grand Vacations by 11.7% during the 4th quarter. Mudita Advisors LLP now owns 2,607,012 shares of the company's stock worth $116,664,000 after buying an additional 273,866 shares during the period. UBS Group AG lifted its holdings in Hilton Grand Vacations by 34.4% in the 3rd quarter. UBS Group AG now owns 2,258,391 shares of the company's stock worth $94,423,000 after buying an additional 577,772 shares in the last quarter. Finally, Parsifal Capital Management LP purchased a new stake in shares of Hilton Grand Vacations during the second quarter worth about $108,863,038. Institutional investors and hedge funds own 97.23% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on HGV shares. Wall Street Zen cut shares of Hilton Grand Vacations from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Barclays decreased their price target on Hilton Grand Vacations from $51.00 to $46.00 and set an "equal weight" rating for the company in a research note on Friday, July 31st. Zacks Research cut Hilton Grand Vacations from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 9th. Truist Financial increased their target price on shares of Hilton Grand Vacations from $67.00 to $71.00 and gave the stock a "buy" rating in a report on Monday, May 18th. Finally, The Goldman Sachs Group decreased their target price on Hilton Grand Vacations from $55.00 to $47.00 and set a "neutral" rating for the company in a research note on Friday, July 31st. Three analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $54.89.

Insider Activity at Hilton Grand Vacations

In related news, insider Charles R. Jr. Corbin sold 20,691 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $46.90, for a total value of $970,407.90. Following the completion of the transaction, the insider owned 47,924 shares in the company, valued at $2,247,635.60. This trade represents a 30.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 3.10% of the stock is currently owned by corporate insiders.

Hilton Grand Vacations Price Performance

NYSE:HGV opened at $43.81 on Monday. The company has a quick ratio of 3.20, a current ratio of 5.02 and a debt-to-equity ratio of 6.18. The business's 50-day moving average price is $48.47 and its 200 day moving average price is $46.95. Hilton Grand Vacations Inc. has a 52-week low of $36.79 and a 52-week high of $55.40. The firm has a market cap of $3.40 billion, a P/E ratio of 24.75, a PEG ratio of 0.43 and a beta of 1.53.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.89 earnings per share for the quarter, missing analysts' consensus estimates of $0.94 by ($0.05). Hilton Grand Vacations had a net margin of 2.86% and a return on equity of 20.40%. The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the company posted $0.54 earnings per share. Hilton Grand Vacations's revenue was up 7.3% compared to the same quarter last year. As a group, sell-side analysts predict that Hilton Grand Vacations Inc. will post 4.61 earnings per share for the current fiscal year.

Hilton Grand Vacations declared that its board has authorized a stock repurchase plan on Thursday, August 20th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 17% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc is a leading developer and marketer of premium vacation ownership resorts. The company specializes in selling timeshare interests in vacation properties under the Hilton Grand Vacations brand, enabling members to purchase deeded real estate interests and utilize a points-based system for booking stays. Alongside new sales, the company provides ongoing management services for its portfolio of resorts, ensuring high standards of guest services, resort maintenance, and member engagement through its proprietary technology platform.

In addition to vacation ownership sales, Hilton Grand Vacations offers a comprehensive suite of membership benefits.

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