Marriott Vacations Worldwide (NYSE:VAC) Trading Down 6.4% - What's Next?

Key Points

• Marriott Vacations Worldwide shares fell 6.4% to about $115.55 in mid-day trading, with volume roughly 79% below the average session level.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $97.80, despite Goldman Sachs maintaining a “Buy” rating with a $132 target.
• The company recently exceeded quarterly expectations, reporting $2.31 in EPS versus a $1.97 estimate and $1.32 billion in revenue, up 5.9% year over year. It also declared a quarterly dividend of $0.80, representing a 2.8% annualized yield.

Marriott Vacations Worldwide Corporation (NYSE:VAC - Get Free Report)'s stock price dropped 6.4% during mid-day trading on Monday . The stock traded as low as $115.58 and last traded at $115.5530. Approximately 112,433 shares were traded during mid-day trading, a decline of 79% from the average session volume of 548,245 shares. The stock had previously closed at $123.47.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Weiss Ratings upgraded Marriott Vacations Worldwide from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday. Wells Fargo & Company increased their price objective on Marriott Vacations Worldwide from $68.00 to $101.00 and gave the company an "underweight" rating in a research report on Friday. Morgan Stanley raised their price objective on shares of Marriott Vacations Worldwide from $51.00 to $52.00 and gave the stock an "underweight" rating in a research note on Friday, July 17th. Mizuho set a $103.00 target price on shares of Marriott Vacations Worldwide in a research note on Wednesday, May 6th. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $132.00 price target on shares of Marriott Vacations Worldwide in a report on Friday. Seven equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Marriott Vacations Worldwide currently has an average rating of "Hold" and an average target price of $97.80.

Marriott Vacations Worldwide Stock Performance

The firm has a fifty day simple moving average of $97.68 and a 200 day simple moving average of $77.64. The company has a current ratio of 3.56, a quick ratio of 2.99 and a debt-to-equity ratio of 2.65. The stock has a market cap of $3.96 billion, a price-to-earnings ratio of -11.85, a PEG ratio of 2.37 and a beta of 1.23.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $2.31 earnings per share for the quarter, topping the consensus estimate of $1.97 by $0.34. The company had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. Marriott Vacations Worldwide had a positive return on equity of 12.27% and a negative net margin of 6.47%.Marriott Vacations Worldwide's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.96 EPS. Marriott Vacations Worldwide has set its FY 2026 guidance at 8.250-9.050 EPS. As a group, sell-side analysts expect that Marriott Vacations Worldwide Corporation will post 8.65 earnings per share for the current year.

Marriott Vacations Worldwide Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 27th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, May 27th. Marriott Vacations Worldwide's payout ratio is -32.85%.

Hedge Funds Weigh In On Marriott Vacations Worldwide

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Advisory Services Network LLC acquired a new stake in shares of Marriott Vacations Worldwide during the 3rd quarter valued at about $27,000. IFP Advisors Inc lifted its stake in Marriott Vacations Worldwide by 1,828.0% during the third quarter. IFP Advisors Inc now owns 482 shares of the company's stock worth $32,000 after purchasing an additional 457 shares during the period. Leonteq Securities AG bought a new position in Marriott Vacations Worldwide during the fourth quarter worth about $35,000. Kestra Advisory Services LLC acquired a new stake in Marriott Vacations Worldwide during the fourth quarter valued at approximately $37,000. Finally, International Assets Investment Management LLC grew its stake in shares of Marriott Vacations Worldwide by 877.2% in the 1st quarter. International Assets Investment Management LLC now owns 557 shares of the company's stock valued at $38,000 after purchasing an additional 500 shares during the period. 89.52% of the stock is owned by institutional investors.

Marriott Vacations Worldwide Company Profile

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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