Hilton Grand Vacations Inc. $HGV Shares Newly Purchased by Bank of America Corp DE

Key Points

• Bank of America purchased 247,217 Hilton Grand Vacations shares worth approximately $12.9 million in the second quarter, while institutional investors collectively owned 97.23% of HGV stock.
• Hilton Grand Vacations authorized a $600 million share buyback, allowing it to repurchase up to 17% of outstanding shares; an insider separately sold 20,691 shares for about $970,000.
• The company missed quarterly earnings and revenue estimates, reporting $0.89 EPS and $1.36 billion in revenue, while analysts maintain a consensus “Hold” rating with a $54.67 price target.

Bank of America Corp DE purchased a new position in Hilton Grand Vacations Inc. (NYSE:HGV - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 247,217 shares of the company's stock, valued at approximately $12,947,000. Bank of America Corp DE owned approximately 0.32% of Hilton Grand Vacations at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new stake in Hilton Grand Vacations during the 2nd quarter worth approximately $422,842,000. Parsifal Capital Management LP bought a new position in shares of Hilton Grand Vacations during the second quarter worth about $108,863,038. TrinityBridge Ltd bought a new position in shares of Hilton Grand Vacations during the second quarter worth about $52,540,000. Norges Bank acquired a new stake in Hilton Grand Vacations in the 4th quarter valued at approximately $32,871,000. Finally, Bank of New York Mellon Corp acquired a new stake in Hilton Grand Vacations in the 2nd quarter valued at approximately $18,750,000. Institutional investors own 97.23% of the company's stock.

Insider Activity at Hilton Grand Vacations

In other news, insider Charles Corbin, Jr. sold 20,691 shares of Hilton Grand Vacations stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $46.90, for a total value of $970,407.90. Following the completion of the sale, the insider directly owned 47,924 shares in the company, valued at approximately $2,247,635.60. The trade was a 30.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 3.10% of the company's stock.

Hilton Grand Vacations Trading Up 2.0%

HGV stock opened at $35.77 on Friday. The company has a debt-to-equity ratio of 6.18, a quick ratio of 3.20 and a current ratio of 5.02. The company's 50-day simple moving average is $43.31 and its 200 day simple moving average is $45.89. Hilton Grand Vacations Inc. has a 52 week low of $34.61 and a 52 week high of $55.40. The company has a market capitalization of $2.78 billion, a PE ratio of 20.21, a price-to-earnings-growth ratio of 0.35 and a beta of 1.50.

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

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

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on HGV. Mizuho decreased their price target on shares of Hilton Grand Vacations from $75.00 to $74.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Susquehanna began coverage on shares of Hilton Grand Vacations in a research report on Tuesday, August 18th. They issued a "neutral" rating and a $50.00 price objective on the stock. Zacks Research cut shares of Hilton Grand Vacations from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 9th. Barclays decreased their target price on shares of Hilton Grand Vacations from $51.00 to $46.00 and set an "equal weight" rating for the company in a research report on Friday, July 31st. Finally, Morgan Stanley reduced their price objective on shares of Hilton Grand Vacations from $58.00 to $54.00 and set an "equal weight" rating for the company in a research note on Tuesday, August 18th. Four analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $54.67.

About Hilton Grand Vacations

Hilton Grand Vacations Inc NYSE: HGV is a vacation ownership company that develops, markets, sells and manages timeshare interests and related vacation experiences. Its products generally provide members with an allotment of vacation time or points that can be used at participating resorts and accommodations.

The company serves vacation owners through resort properties and membership programs under brands including Hilton Grand Vacations, The Hilton Club and HGV Max. Its offerings may include access to resort accommodations, exchange programs, travel services and other member benefits.

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