Hilton Grand Vacations Inc. $HGV Stock Acquired by Iridian Asset Management LLC CT

Key Points

• Iridian Asset Management increased its Hilton Grand Vacations stake by 54.5% in the third quarter, acquiring 251,068 shares for a total holding of 711,664 shares valued at approximately $24.7 million. Institutional investors collectively own 97.23% of HGV.
• Hilton Grand Vacations shares opened at $35.90, down 3.2%, and remain near their 52-week low of $33.99. The company’s latest quarterly results missed analyst expectations, with adjusted earnings of $0.89 per share versus a $0.94 consensus estimate.
• The board authorized a $600 million stock-repurchase program, allowing the company to buy back up to 17% of its outstanding shares. Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $50.40.

Iridian Asset Management LLC CT lifted its stake in shares of Hilton Grand Vacations Inc. (NYSE:HGV - Free Report) by 54.5% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 711,664 shares of the company's stock after acquiring an additional 251,068 shares during the period. Hilton Grand Vacations makes up about 8.8% of Iridian Asset Management LLC CT's investment portfolio, making the stock its 4th largest holding. Iridian Asset Management LLC CT owned about 0.92% of Hilton Grand Vacations worth $24,666,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Persistent Asset Partners Ltd bought a new stake in Hilton Grand Vacations in the 2nd quarter valued at approximately $63,000. Leonteq Securities AG lifted its stake in Hilton Grand Vacations by 189.7% in the first quarter. Leonteq Securities AG now owns 672 shares of the company's stock valued at $26,000 after acquiring an additional 440 shares during the last quarter. Nykredit A S bought a new position in Hilton Grand Vacations during the second quarter worth about $38,000. Allworth Financial LP bought a new position in shares of Hilton Grand Vacations during the 2nd quarter worth approximately $43,000. Finally, Public Employees Retirement System of Ohio bought a new position in Hilton Grand Vacations during the second quarter worth $85,000. Institutional investors and hedge funds own 97.23% of the company's stock.

Hilton Grand Vacations Stock Down 3.2%

Shares of NYSE HGV opened at $35.90 on Friday. The company has a market capitalization of $2.79 billion, a P/E ratio of 20.28, a price-to-earnings-growth ratio of 0.36 and a beta of 1.61. The company has a debt-to-equity ratio of 6.18, a quick ratio of 3.20 and a current ratio of 5.02. Hilton Grand Vacations Inc. has a 52-week low of $33.99 and a 52-week high of $55.40. The company's 50 day moving average price is $38.54 and its 200-day moving average price is $45.10.

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 return on equity of 20.40% and a net margin of 2.86%. The business had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the business posted $0.54 earnings per share. The business's revenue was up 7.3% on a year-over-year basis. Equities analysts forecast that Hilton Grand Vacations Inc. will post 4.48 earnings per share for the current year.

Hilton Grand Vacations announced that its board has approved a stock buyback plan on Thursday, August 20th that permits the company to repurchase $600.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 17% of its shares through open market purchases. Stock buyback plans are typically an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of Hilton Grand Vacations stock in a transaction 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 of the company's stock, 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 document filed with the SEC, which is accessible through this hyperlink. Insiders own 3.10% of the company's stock.

Wall Street Analyst Weigh In

HGV has been the subject of a number of research analyst reports. Zacks Research cut Hilton Grand Vacations from a "hold" rating to a "strong sell" rating in a report on Monday, October 5th. Susquehanna decreased their price target on Hilton Grand Vacations from $50.00 to $39.00 and set a "neutral" rating on the stock in a research report on Thursday, October 15th. Wall Street Zen downgraded shares of Hilton Grand Vacations from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Mizuho lowered their price target on Hilton Grand Vacations from $75.00 to $74.00 and set an "outperform" rating for the company in a report on Friday, July 31st. Finally, Weiss Ratings cut shares of Hilton Grand Vacations from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, October 19th. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Hilton Grand Vacations presently has a consensus rating of "Hold" and a consensus target price of $50.40.

Hilton Grand Vacations Profile

Hilton Grand Vacations Inc NYSE: HGV is a global vacation ownership company that markets and sells vacation intervals, points-based memberships and related travel experiences. Its portfolio includes branded vacation ownership resorts and accommodations in popular leisure destinations, with products designed to provide members with recurring access to vacation properties.

The company also provides resort management, reservation and customer services, financing for vacation ownership purchases, and exchange and travel-planning services.

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