Hilton Grand Vacations (NYSE:HGV) Stock Price Down 12.6% After Earnings Miss

Key Points

• Hilton Grand Vacations shares fell 12.6% to about $44.96 after quarterly EPS came in at $0.89, below the $0.97 analyst consensus. Revenue also missed expectations at $1.36 billion versus $1.38 billion, though it rose 7.3% year over year.
• Analyst sentiment remains cautious, with four Buy ratings and seven Hold ratings producing an overall “Hold” consensus and an average price target of $57.22.
• Insiders have sold 229,315 shares worth approximately $11.7 million over the past 90 days, while institutional investors own a substantial 97.23% of the company.

Hilton Grand Vacations Inc. (NYSE:HGV - Get Free Report) dropped 12.6% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $45.11 and last traded at $44.9580. 213,053 shares traded hands during trading, a decline of 77% from the average session volume of 936,936 shares. The stock had previously closed at $51.42.

The company reported $0.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.97 by ($0.08). The firm had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.38 billion. Hilton Grand Vacations had a net margin of 3.16% and a return on equity of 17.62%. Hilton Grand Vacations's revenue was up 7.3% on a year-over-year basis. During the same period last year, the firm posted $0.54 EPS.

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Analyst Ratings Changes

HGV has been the subject of a number of research reports. Wall Street Zen cut Hilton Grand Vacations from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Morgan Stanley lifted their price target on shares of Hilton Grand Vacations from $55.00 to $58.00 and gave the company an "equal weight" rating in a research report on Friday, July 17th. Weiss Ratings reiterated a "hold (c)" rating on shares of Hilton Grand Vacations in a research note on Friday, May 29th. The Goldman Sachs Group raised shares of Hilton Grand Vacations from a "sell" rating to a "neutral" rating and set a $55.00 price objective for the company in a research report on Monday, June 1st. Finally, Truist Financial raised their target price on shares of Hilton Grand Vacations from $67.00 to $71.00 and gave the company a "buy" rating in a research note on Monday, May 18th. Four investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Hilton Grand Vacations presently has an average rating of "Hold" and a consensus price target of $57.22.

Insider Buying and Selling

In other news, insider Charles R. Jr. Corbin sold 32,907 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $47.66, for a total transaction of $1,568,347.62. Following the transaction, the insider directly owned 68,615 shares of the company's stock, valued at approximately $3,270,190.90. The trade was a 32.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Carlos Hernandez sold 5,595 shares of the business's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $46.69, for a total transaction of $261,230.55. Following the transaction, the insider directly owned 14,080 shares in the company, valued at approximately $657,395.20. The trade was a 28.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 229,315 shares of company stock valued at $11,738,497. Corporate insiders own 3.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of HGV. Geode Capital Management LLC increased its stake in shares of Hilton Grand Vacations by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 1,472,796 shares of the company's stock worth $65,919,000 after buying an additional 25,020 shares during the last quarter. Tudor Investment Corp ET AL acquired a new position in Hilton Grand Vacations during the 3rd quarter worth $6,956,000. Iridian Asset Management LLC CT grew its holdings in Hilton Grand Vacations by 69.7% during the 4th quarter. Iridian Asset Management LLC CT now owns 464,964 shares of the company's stock worth $20,807,000 after acquiring an additional 190,909 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Hilton Grand Vacations by 93,334.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 51,389 shares of the company's stock worth $2,300,000 after purchasing an additional 51,334 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Hilton Grand Vacations in the 4th quarter worth about $32,871,000. Institutional investors and hedge funds own 97.23% of the company's stock.

Hilton Grand Vacations Trading Down 12.5%

The firm has a market cap of $3.57 billion, a price-to-earnings ratio of 24.06, a price-to-earnings-growth ratio of 0.51 and a beta of 1.51. The business's 50 day moving average price is $50.93 and its 200-day moving average price is $47.15. The company has a debt-to-equity ratio of 5.41, a quick ratio of 2.64 and a current ratio of 4.33.

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.

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