Hilton Grand Vacations (NYSE:HGV) Board Authorizes Share Repurchase Plan

Key Points

• Hilton Grand Vacations approved a $600 million share-repurchase program, authorizing buybacks of up to 17% of outstanding shares—an indication management may view the stock as undervalued.
• Analysts remain cautious, with three Buy ratings and eight Holds, producing an average rating of Hold and a $54.89 target price. HGV shares recently traded at $44.83, down 1.1%.
• The company’s latest quarterly results fell slightly short of expectations, with EPS of $0.89 versus a $0.94 estimate and revenue of $1.36 billion versus $1.38 billion expected; insiders have also recently sold shares.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) announced that its Board of Directors has approved a stock repurchase program on Thursday, August 20th, RTT News reports. The company plans to buyback $600.00 million in shares. This buyback authorization authorizes the company to buy up to 17% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Zacks Research lowered shares of Hilton Grand Vacations from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 9th. Wall Street Zen lowered shares of Hilton Grand Vacations from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Mizuho decreased their price objective 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. Barclays lowered their target price on Hilton Grand Vacations from $51.00 to $46.00 and set an "equal weight" rating on the stock in a research report on Friday, July 31st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Hilton Grand Vacations in a report on Friday, May 29th. Three analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $54.89.

Hilton Grand Vacations Stock Down 1.1%

Shares of NYSE:HGV traded down $0.49 during midday trading on Thursday, hitting $44.83. 1,276,876 shares of the company's stock were exchanged, compared to its average volume of 1,178,784. The company has a debt-to-equity ratio of 6.18, a current ratio of 5.02 and a quick ratio of 3.20. Hilton Grand Vacations has a 12 month low of $36.79 and a 12 month high of $55.40. The company has a market cap of $3.48 billion, a PE ratio of 25.33, a price-to-earnings-growth ratio of 0.45 and a beta of 1.53. The stock has a 50 day moving average price of $49.33 and a 200-day moving average price of $47.03.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last announced its quarterly earnings results 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 the consensus estimate of $1.38 billion. Hilton Grand Vacations had a net margin of 2.86% and a return on equity of 20.40%. Hilton Grand Vacations's revenue was up 7.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.54 EPS. On average, sell-side analysts anticipate that Hilton Grand Vacations will post 4.61 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Charles R. Jr. Corbin sold 20,691 shares of the company's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $46.90, for a total transaction of $970,407.90. Following the completion of the sale, the insider owned 47,924 shares in the company, valued at approximately $2,247,635.60. This represents a 30.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Mark D. Wang sold 190,813 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $51.93, for a total value of $9,908,919.09. Following the completion of the sale, the insider directly owned 904,241 shares of the company's stock, valued at $46,957,235.13. The trade was a 17.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.10% of the stock is owned by company insiders.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc is a leading developer and marketer of premium vacation ownership resorts. The company specializes in selling timeshare interests in vacation properties under the Hilton Grand Vacations brand, enabling members to purchase deeded real estate interests and utilize a points-based system for booking stays. Alongside new sales, the company provides ongoing management services for its portfolio of resorts, ensuring high standards of guest services, resort maintenance, and member engagement through its proprietary technology platform.

In addition to vacation ownership sales, Hilton Grand Vacations offers a comprehensive suite of membership benefits.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source