Marriott Vacations Worldwide Corporation (NYSE:VAC) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst sentiment is mixed: Twelve brokerages give Marriott Vacations Worldwide an average “Hold” rating, with three sells, two holds, and seven buys. The average 12-month price target is $86.70, below the reported share price of $97.50.
• Institutional ownership is high: Hedge funds and other institutions own 89.52% of the company, with several major investors—including Vanguard, Arrowstreet Capital, and Quantinno Capital—recently increasing their positions.
• Results were mixed but the dividend remains attractive: The company missed quarterly EPS estimates ($1.24 versus $1.67 expected) despite revenue exceeding forecasts, while its $0.80 quarterly dividend implies a 3.3% annualized yield.

Shares of Marriott Vacations Worldwide Corporation (NYSE:VAC - Get Free Report) have received an average rating of "Hold" from the twelve ratings firms that are currently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a sell rating, two have assigned a hold rating and seven have assigned a buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $86.70.

Several brokerages have weighed in on VAC. Morgan Stanley lifted their target price on Marriott Vacations Worldwide from $51.00 to $52.00 and gave the company an "underweight" rating in a research note on Friday, July 17th. Barclays upped their price target on Marriott Vacations Worldwide from $80.00 to $94.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft increased their price target on Marriott Vacations Worldwide from $92.00 to $119.00 and gave the stock a "buy" rating in a report on Tuesday, June 30th. Zacks Research cut shares of Marriott Vacations Worldwide from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 2nd. Finally, Wells Fargo & Company upped their price objective on shares of Marriott Vacations Worldwide from $66.00 to $68.00 and gave the stock an "underweight" rating in a research report on Tuesday, July 14th.

Hedge Funds Weigh In On Marriott Vacations Worldwide

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in shares of Marriott Vacations Worldwide by 7.4% in the 4th quarter. Vanguard Group Inc. now owns 3,392,787 shares of the company's stock valued at $195,730,000 after buying an additional 234,105 shares during the period. Ananym Capital Management LP grew its holdings in Marriott Vacations Worldwide by 0.4% during the fourth quarter. Ananym Capital Management LP now owns 736,947 shares of the company's stock worth $42,514,000 after acquiring an additional 3,200 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in Marriott Vacations Worldwide by 11.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 705,629 shares of the company's stock worth $46,967,000 after acquiring an additional 69,652 shares during the period. Deprince Race & Zollo Inc. raised its position in Marriott Vacations Worldwide by 5.4% in the first quarter. Deprince Race & Zollo Inc. now owns 524,247 shares of the company's stock worth $34,139,000 after acquiring an additional 26,824 shares in the last quarter. Finally, Quantinno Capital Management LP raised its position in Marriott Vacations Worldwide by 12.3% in the first quarter. Quantinno Capital Management LP now owns 474,037 shares of the company's stock worth $30,869,000 after acquiring an additional 52,007 shares in the last quarter. Institutional investors and hedge funds own 89.52% of the company's stock.

Marriott Vacations Worldwide Price Performance

Shares of NYSE:VAC opened at $97.50 on Friday. Marriott Vacations Worldwide has a one year low of $44.58 and a one year high of $105.97. The stock has a market capitalization of $3.35 billion, a price-to-earnings ratio of -9.66, a PEG ratio of 2.21 and a beta of 1.22. The company has a 50-day simple moving average of $94.94 and a 200-day simple moving average of $75.87. The company has a debt-to-equity ratio of 2.80, a quick ratio of 2.77 and a current ratio of 3.30.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $1.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.67 by ($0.43). The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.20 billion. Marriott Vacations Worldwide had a negative net margin of 6.72% and a positive return on equity of 11.37%. The business's revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the firm earned $1.66 EPS. Marriott Vacations Worldwide has set its FY 2026 guidance at 7.050-7.800 EPS. On average, analysts predict that Marriott Vacations Worldwide will post 7.32 EPS for the current year.

Marriott Vacations Worldwide Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 27th were given a $0.80 dividend. The ex-dividend date was Wednesday, May 27th. This represents a $3.20 dividend on an annualized basis and a yield of 3.3%. Marriott Vacations Worldwide's dividend payout ratio (DPR) is presently -31.71%.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, headquartered in Orlando, Florida, specializes in the development, marketing and management of vacation ownership resorts and related products. Originally launched as a division of Marriott International in 1984, the company became a separate publicly traded entity in 2011. Since then, it has expanded its offerings through both organic growth and strategic acquisitions, establishing itself as a leading provider in the global timeshare industry.

The company's core business activities include selling vacation ownership interests, managing a growing portfolio of branded resorts and operating a loyalty program that allows members to exchange or use points at affiliated properties.

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