Vail Resorts, Inc. $MTN Shares Sold by CenterBook Partners LP

Key Points

• CenterBook Partners LP reduced its Vail Resorts stake by 57.5% in the fourth quarter, selling 10,393 shares and leaving it with 7,681 shares worth about $1.02 million.
• Vail Resorts reported fiscal Q3 earnings that missed expectations, posting EPS of $8.81 versus $8.97 expected, while revenue of $1.21 billion was roughly in line with forecasts and down 7% year over year.
• The company declared a quarterly dividend of $2.22 per share, implying an annualized yield of 6.5%, even as analysts remain cautious with an overall Hold rating and an average price target of $151.45.

CenterBook Partners LP cut its stake in shares of Vail Resorts, Inc. (NYSE:MTN - Free Report) by 57.5% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,681 shares of the company's stock after selling 10,393 shares during the quarter. CenterBook Partners LP's holdings in Vail Resorts were worth $1,020,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in the company. Syon Capital LLC lifted its position in Vail Resorts by 24.9% during the 4th quarter. Syon Capital LLC now owns 1,672 shares of the company's stock worth $222,000 after acquiring an additional 333 shares during the period. Capital World Investors increased its holdings in shares of Vail Resorts by 6.1% in the fourth quarter. Capital World Investors now owns 3,196,445 shares of the company's stock valued at $424,488,000 after purchasing an additional 182,982 shares during the period. Capital International Inc. CA increased its holdings in shares of Vail Resorts by 4.3% in the fourth quarter. Capital International Inc. CA now owns 73,551 shares of the company's stock valued at $9,768,000 after purchasing an additional 3,032 shares during the period. XML Financial LLC purchased a new position in shares of Vail Resorts in the fourth quarter worth about $222,000. Finally, 111 Capital purchased a new position in shares of Vail Resorts in the fourth quarter worth about $389,000. 94.90% of the stock is owned by institutional investors and hedge funds.

Vail Resorts Stock Up 3.8%

Shares of MTN opened at $136.27 on Thursday. Vail Resorts, Inc. has a 52 week low of $118.51 and a 52 week high of $172.00. The company has a quick ratio of 0.51, a current ratio of 0.91 and a debt-to-equity ratio of 3.22. The company has a market capitalization of $4.86 billion, a price-to-earnings ratio of 30.97, a PEG ratio of 11.17 and a beta of 0.72. The stock's 50-day moving average price is $128.42 and its 200-day moving average price is $135.22.

Vail Resorts (NYSE:MTN - Get Free Report) last announced its quarterly earnings results on Monday, June 8th. The company reported $8.81 earnings per share for the quarter, missing the consensus estimate of $8.97 by ($0.16). Vail Resorts had a net margin of 5.38% and a return on equity of 21.88%. The company had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter in the prior year, the business posted $10.54 earnings per share. The firm's revenue was down 7.0% compared to the same quarter last year. On average, sell-side analysts predict that Vail Resorts, Inc. will post 4.76 EPS for the current year.

Vail Resorts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 25th will be issued a dividend of $2.22 per share. This represents a $8.88 annualized dividend and a dividend yield of 6.5%. The ex-dividend date of this dividend is Thursday, June 25th. Vail Resorts's payout ratio is 144.86%.

Insider Activity at Vail Resorts

In other news, CEO Robert A. Katz purchased 37,500 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were bought at an average price of $131.81 per share, for a total transaction of $4,942,875.00. Following the completion of the transaction, the chief executive officer owned 285,312 shares in the company, valued at $37,606,974.72. This represents a 15.13% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Angela A. Korch purchased 190 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were purchased at an average price of $131.85 per share, for a total transaction of $25,051.50. Following the transaction, the chief financial officer owned 5,539 shares of the company's stock, valued at $730,317.15. This trade represents a 3.55% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.20% of the stock is owned by insiders.

More Vail Resorts News

Here are the key news stories impacting Vail Resorts this week:

• Negative Sentiment: Vail Resorts reported fiscal Q3 earnings that missed estimates, with EPS of $8.81 versus $8.97 expected, even as revenue came in roughly in line at $1.21 billion. Article Title
• Negative Sentiment: Management said unusually poor snow conditions hurt visitation, with skier days down 12.5% and lift ticket revenue and pass sales under pressure. The company also warned that next season’s pass sales are running below last year, reducing confidence in a near-term recovery. Article Title
• Negative Sentiment: Several outlets highlighted that one of the worst snowfall seasons in decades and warmer-than-normal weather have weighed on Rockies ski traffic, reinforcing concerns that the business is highly dependent on weather and pass demand. Article Title
• Negative Sentiment: Analysts turned more cautious: JPMorgan raised its price target only modestly to $126 while keeping a neutral rating, and Deutsche Bank cut its target to $134. Seeking Alpha also downgraded the stock to sell, citing deteriorating fundamentals. Article Title
• Neutral Sentiment: Vail still pays a sizeable dividend, declaring $2.22 per share quarterly, which may support income-focused investors even as operating trends weaken. Article Title

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on MTN shares. Deutsche Bank Aktiengesellschaft dropped their target price on Vail Resorts from $143.00 to $134.00 and set a "hold" rating on the stock in a research report on Tuesday. Morgan Stanley reduced their price target on shares of Vail Resorts from $151.00 to $147.00 and set an "equal weight" rating for the company in a research report on Thursday, March 12th. Wells Fargo & Company started coverage on shares of Vail Resorts in a research note on Wednesday, March 11th. They set an "equal weight" rating and a $135.00 price objective for the company. Truist Financial dropped their price objective on shares of Vail Resorts from $212.00 to $195.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, JPMorgan Chase & Co. increased their price objective on shares of Vail Resorts from $124.00 to $126.00 and gave the stock a "neutral" rating in a research note on Tuesday. Five investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $151.45.

About Vail Resorts

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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