Marriott Vacations Worldwide (NYSE:VAC) Hits New 1-Year High on Strong Earnings

Key Points

• Marriott Vacations Worldwide beat quarterly expectations, reporting EPS of $2.31 versus the $1.97 consensus and revenue of $1.32 billion, up 5.9% year over year. The results pushed shares to a new 52-week high.
• The company announced a quarterly dividend of $0.80 per share, equivalent to $3.20 annually and a 2.9% yield.
• Analyst sentiment remains mixed: seven analysts rate the stock a Buy, two a Hold and three a Sell, producing an overall “Hold” rating and an average price target of $86.70.

Shares of Marriott Vacations Worldwide Corporation (NYSE:VAC - Get Free Report) reached a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $108.00 and last traded at $111.2850, with a volume of 1726 shares trading hands. The stock had previously closed at $101.74.

The company reported $2.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.97 by $0.34. The firm had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.30 billion. Marriott Vacations Worldwide had a negative net margin of 6.72% and a positive return on equity of 11.37%. The firm's quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.96 earnings per share. Marriott Vacations Worldwide has set its FY 2026 guidance at 8.250-9.050 EPS.

Marriott Vacations Worldwide Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th were paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Wednesday, May 27th. Marriott Vacations Worldwide's dividend payout ratio is presently -31.71%.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Morgan Stanley lifted their price target 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. Deutsche Bank Aktiengesellschaft upped their target price on Marriott Vacations Worldwide from $92.00 to $119.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. Mizuho set a $103.00 price objective on shares of Marriott Vacations Worldwide in a research note on Wednesday, May 6th. Weiss Ratings reissued a "sell (d)" rating on shares of Marriott Vacations Worldwide in a research note on Friday, June 12th. Finally, Wells Fargo & Company increased their price target on Marriott Vacations Worldwide from $66.00 to $68.00 and gave the company an "underweight" rating in a report on Tuesday, July 14th. Seven investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell 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 $86.70.

Hedge Funds Weigh In On Marriott Vacations Worldwide

Several institutional investors and hedge funds have recently bought and sold shares of the company. Capital World Investors purchased a new position in Marriott Vacations Worldwide during the 3rd quarter valued at about $226,000. Vanguard Group Inc. increased its stake in Marriott Vacations Worldwide by 7.4% during the fourth quarter. Vanguard Group Inc. now owns 3,392,787 shares of the company's stock worth $195,730,000 after purchasing an additional 234,105 shares during the period. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Marriott Vacations Worldwide during the fourth quarter worth about $12,633,000. AQR Capital Management LLC boosted its stake in shares of Marriott Vacations Worldwide by 157.8% in the fourth quarter. AQR Capital Management LLC now owns 351,552 shares of the company's stock valued at $20,281,000 after purchasing an additional 215,202 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in shares of Marriott Vacations Worldwide by 41.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 399,668 shares of the company's stock valued at $23,057,000 after purchasing an additional 117,030 shares during the period. 89.52% of the stock is currently owned by institutional investors and hedge funds.

Marriott Vacations Worldwide Stock Up 7.5%

The company has a quick ratio of 2.77, a current ratio of 3.30 and a debt-to-equity ratio of 2.80. The stock has a market cap of $3.76 billion, a price-to-earnings ratio of -10.94, a PEG ratio of 2.23 and a beta of 1.23. The business's fifty day moving average is $96.12 and its two-hundred day moving average is $76.73.

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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