Hyatt Hotels (NYSE:H) Shares Gap Down - Time to Sell?

Key Points

• Hyatt Hotels shares fell sharply, opening at $173.00 versus a prior close of $186.02 and last trading near $172.34.
• Despite the decline, analysts maintain a generally positive view: nine rate the stock a Buy and six a Hold, producing a “Moderate Buy” consensus and an average price target of $198.29.
• Hyatt exceeded quarterly expectations with adjusted EPS of $1.12 versus $0.91 expected and revenue of $1.83 billion, though insiders sold 23,224 shares worth about $4.17 million over the past three months.

Hyatt Hotels Corporation (NYSE:H - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $186.02, but opened at $173.00. Hyatt Hotels shares last traded at $172.3360, with a volume of 240,573 shares changing hands.

Analysts Set New Price Targets

Several research firms recently commented on H. Stifel Nicolaus set a $182.00 target price on shares of Hyatt Hotels in a research note on Friday, May 29th. Sanford C. Bernstein raised their price objective on Hyatt Hotels from $186.00 to $202.00 and gave the stock an "outperform" rating in a research note on Friday, May 15th. Truist Financial boosted their target price on Hyatt Hotels from $181.00 to $187.00 and gave the stock a "buy" rating in a research report on Tuesday, May 26th. Morgan Stanley lifted their price target on Hyatt Hotels from $208.00 to $218.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Hyatt Hotels in a report on Wednesday, June 24th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $198.29.

Hyatt Hotels Stock Performance

The stock has a market cap of $16.46 billion, a P/E ratio of -498.55 and a beta of 1.32. The firm's 50-day moving average is $190.41 and its two-hundred day moving average is $170.55. The company has a quick ratio of 0.60, a current ratio of 0.60 and a debt-to-equity ratio of 1.03.

Hyatt Hotels (NYSE:H - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $0.91 by $0.21. The company had revenue of $1.83 billion during the quarter, compared to the consensus estimate of $1.82 billion. Hyatt Hotels had a negative net margin of 0.48% and a positive return on equity of 6.01%. The company's revenue for the quarter was up 1.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.68 earnings per share. As a group, research analysts expect that Hyatt Hotels Corporation will post 3.58 EPS for the current year.

Insider Buying and Selling

In related news, Director Cary D. Mcmillan sold 1,119 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $174.96, for a total value of $195,780.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Peter Sears sold 10,217 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $185.66, for a total value of $1,896,888.22. Following the sale, the insider directly owned 6,374 shares of the company's stock, valued at $1,183,396.84. The trade was a 61.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 23,224 shares of company stock valued at $4,173,605 in the last three months. 23.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Los Angeles Capital Management LLC bought a new stake in Hyatt Hotels during the fourth quarter valued at about $26,000. Johnson Financial Group Inc. lifted its position in shares of Hyatt Hotels by 450.0% during the 3rd quarter. Johnson Financial Group Inc. now owns 176 shares of the company's stock worth $25,000 after purchasing an additional 144 shares during the last quarter. DV Equities LLC bought a new stake in Hyatt Hotels during the 4th quarter valued at approximately $32,000. Ares Financial Consulting LLC acquired a new stake in Hyatt Hotels in the 4th quarter valued at approximately $34,000. Finally, NewEdge Advisors LLC increased its position in Hyatt Hotels by 121.4% in the 4th quarter. NewEdge Advisors LLC now owns 228 shares of the company's stock worth $37,000 after buying an additional 125 shares during the period. 73.54% of the stock is currently owned by institutional investors and hedge funds.

About Hyatt Hotels

Hyatt Hotels Corporation NYSE: H is a global hospitality company that develops, owns, manages and franchises luxury and business hotels, resorts and vacation properties. Its portfolio spans a range of price points and styles under brands such as Park Hyatt, Grand Hyatt, Andaz, Hyatt Regency, Hyatt Centric, Hyatt Place, Hyatt House, Thompson Hotels, Alila and Destination by Hyatt. In addition to accommodations, the company provides meeting and event spaces, food and beverage outlets, spa and wellness centers, and a variety of guest services designed to cater to both leisure and business travelers.

Hyatt's business model combines property ownership, management contracts and third-party franchising.

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