Vanguard Group Inc. Sells 112,304 Shares of Vail Resorts, Inc. $MTN

Key Points

• Vanguard trimmed its stake in Vail Resorts by 3.1%, selling 112,304 shares and leaving it with 3,508,036 shares (9.80% ownership) valued at about $465.9 million.
• CEO Robert A. Katz purchased 37,500 shares at an average $131.81, a 15.13% increase in his position, representing a notable insider buy.
• Vail missed quarterly estimates (EPS $5.87 vs. $6.06; revenue $1.08B vs. $1.11B) and recently paid a $2.22 quarterly dividend (annualized $8.88, yield 7.2%) with a payout ratio of 144.86%, raising questions about dividend sustainability amid weaker results.

Vanguard Group Inc. cut its holdings in Vail Resorts, Inc. (NYSE:MTN - Free Report) by 3.1% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 3,508,036 shares of the company's stock after selling 112,304 shares during the quarter. Vanguard Group Inc. owned 9.80% of Vail Resorts worth $465,867,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of MTN. BOKF NA lifted its position in Vail Resorts by 833.3% during the third quarter. BOKF NA now owns 168 shares of the company's stock valued at $25,000 after purchasing an additional 150 shares during the last quarter. NBT Bank N A NY increased its holdings in shares of Vail Resorts by 450.0% in the 3rd quarter. NBT Bank N A NY now owns 176 shares of the company's stock worth $26,000 after buying an additional 144 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in shares of Vail Resorts by 815.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 174 shares of the company's stock valued at $27,000 after buying an additional 155 shares in the last quarter. Danske Bank A S purchased a new stake in shares of Vail Resorts during the 3rd quarter valued at about $30,000. Finally, Employees Retirement System of Texas bought a new position in shares of Vail Resorts in the 3rd quarter valued at about $46,000. Institutional investors own 94.90% of the company's stock.

Insider Buying and Selling

In related news, CEO Robert A. Katz bought 37,500 shares of Vail Resorts stock in a transaction dated Monday, March 16th. The shares were acquired at an average cost of $131.81 per share, with a total value 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. The trade was a 15.13% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Angela A. Korch purchased 190 shares of the firm's stock in a transaction dated Monday, March 16th. The shares were bought at an average cost of $131.85 per share, with a total value of $25,051.50. Following the purchase, the chief financial officer directly owned 5,539 shares of the company's stock, valued at approximately $730,317.15. This represents a 3.55% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.20% of the company's stock.

Vail Resorts Stock Performance

MTN stock opened at $123.03 on Wednesday. Vail Resorts, Inc. has a twelve month low of $118.51 and a twelve month high of $175.51. The firm has a market cap of $4.38 billion, a price-to-earnings ratio of 20.07, a PEG ratio of 10.42 and a beta of 0.70. The business's fifty day simple moving average is $131.72 and its two-hundred day simple moving average is $138.69. The company has a quick ratio of 0.51, a current ratio of 0.62 and a debt-to-equity ratio of 4.43.

Vail Resorts (NYSE:MTN - Get Free Report) last posted its quarterly earnings results on Monday, March 9th. The company reported $5.87 EPS for the quarter, missing analysts' consensus estimates of $6.06 by ($0.19). The company had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.11 billion. Vail Resorts had a return on equity of 29.72% and a net margin of 7.89%.The company's revenue for the quarter was down 4.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $6.56 earnings per share. Analysts predict that Vail Resorts, Inc. will post 4.79 earnings per share for the current year.

Vail Resorts Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Thursday, March 26th were paid a $2.22 dividend. This represents a $8.88 dividend on an annualized basis and a yield of 7.2%. The ex-dividend date was Thursday, March 26th. Vail Resorts's dividend payout ratio is currently 144.86%.

Analysts Set New Price Targets

Several brokerages have weighed in on MTN. Zacks Research cut Vail Resorts from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 28th. Mizuho lowered their price objective on Vail Resorts from $202.00 to $200.00 and set an "outperform" rating for the company in a research note on Tuesday, March 10th. JPMorgan Chase & Co. dropped their target price on Vail Resorts from $172.00 to $156.00 and set a "neutral" rating for the company in a report on Tuesday, March 10th. Wall Street Zen downgraded Vail Resorts from a "hold" rating to a "sell" rating in a research report on Saturday, January 10th. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on Vail Resorts from $159.00 to $151.00 and set a "hold" rating for the company in a research report on Friday, March 6th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $161.82.

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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