Pershing Square Capital Management L.P. Cuts Holdings in Hilton Worldwide Holdings Inc. $HLT

Key Points

• Pershing Square Capital Management L.P. has reduced its holdings in Hilton Worldwide by 44.8%, owning approximately 3 million shares valued at $682.83 million.
• Several institutional investors have increased their stakes in Hilton, with GAMMA Investing LLC raising its position by an extraordinary 23,543.6%.
• Hilton Worldwide's stock has experienced a 52-week range of $196.04 to $279.81, with its recent quarterly results showing revenue growth of 6.3% year-over-year.

Pershing Square Capital Management L.P. trimmed its holdings in Hilton Worldwide Holdings Inc. (NYSE:HLT - Free Report) by 44.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,000,770 shares of the company's stock after selling 2,439,776 shares during the period. Hilton Worldwide comprises approximately 5.7% of Pershing Square Capital Management L.P.'s holdings, making the stock its 9th largest holding. Pershing Square Capital Management L.P. owned about 1.26% of Hilton Worldwide worth $682,825,000 as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in HLT. ORG Partners LLC raised its position in shares of Hilton Worldwide by 78.7% in the 1st quarter. ORG Partners LLC now owns 168 shares of the company's stock valued at $38,000 after purchasing an additional 74 shares in the last quarter. Beacon Capital Management LLC raised its position in shares of Hilton Worldwide by 76.0% during the 1st quarter. Beacon Capital Management LLC now owns 176 shares of the company's stock valued at $40,000 after acquiring an additional 76 shares in the last quarter. Valley National Advisers Inc. raised its position in shares of Hilton Worldwide by 244.8% during the 1st quarter. Valley National Advisers Inc. now owns 200 shares of the company's stock valued at $45,000 after acquiring an additional 142 shares in the last quarter. Wayfinding Financial LLC acquired a new stake in shares of Hilton Worldwide during the 1st quarter valued at approximately $54,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Hilton Worldwide during the 1st quarter valued at approximately $61,000. 95.90% of the stock is owned by institutional investors and hedge funds.

Hilton Worldwide Price Performance

Hilton Worldwide stock traded down $1.14 during mid-day trading on Tuesday, hitting $276.66. The company's stock had a trading volume of 61,548 shares, compared to its average volume of 1,971,238. The firm's 50 day moving average is $271.32 and its 200 day moving average is $249.82. The company has a market cap of $65.07 billion, a PE ratio of 42.52, a price-to-earnings-growth ratio of 2.68 and a beta of 1.21. Hilton Worldwide Holdings Inc. has a 52-week low of $196.04 and a 52-week high of $279.80.

Hilton Worldwide (NYSE:HLT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.04 by $0.16. The firm had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.09 billion. Hilton Worldwide had a negative return on equity of 46.13% and a net margin of 13.84%.The business's revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the prior year, the business earned $1.91 EPS. Hilton Worldwide has set its Q3 2025 guidance at 1.980-2.040 EPS. FY 2025 guidance at 7.830-8.000 EPS. As a group, analysts forecast that Hilton Worldwide Holdings Inc. will post 7.89 EPS for the current year.

Hilton Worldwide Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Friday, August 29th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.60 dividend on an annualized basis and a yield of 0.2%. Hilton Worldwide's dividend payout ratio (DPR) is presently 9.22%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on HLT. Jefferies Financial Group raised Hilton Worldwide from a "hold" rating to a "buy" rating and increased their target price for the stock from $228.00 to $296.00 in a research report on Monday, May 12th. Raymond James Financial increased their price target on Hilton Worldwide from $275.00 to $300.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. JPMorgan Chase & Co. began coverage on Hilton Worldwide in a research note on Monday, June 23rd. They issued an "overweight" rating and a $282.00 price target for the company. Barclays decreased their price target on Hilton Worldwide from $296.00 to $291.00 and set an "overweight" rating for the company in a research note on Thursday, July 24th. Finally, Macquarie lifted their target price on Hilton Worldwide from $240.00 to $258.00 and gave the stock a "neutral" rating in a report on Wednesday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $264.40.

Insider Activity

In related news, insider Christopher W. Silcock sold 11,905 shares of the business's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $269.40, for a total value of $3,207,207.00. Following the completion of the sale, the insider owned 79,451 shares of the company's stock, valued at approximately $21,404,099.40. The trade was a 13.03% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 2.60% of the stock is currently owned by corporate insiders.

Hilton Worldwide Company Profile

Hilton Worldwide Holdings Inc, a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations.