Morgan Stanley Issues Pessimistic Forecast for Hilton Grand Vacations (NYSE:HGV) Stock Price

Key Points

• Morgan Stanley lowered Hilton Grand Vacations’ price target from $58 to $54 while maintaining an “equal weight” rating. The new target implies roughly 20% upside from the prior close.
• Analyst sentiment remains cautious, with three “buy” ratings and eight “hold” ratings; the consensus rating is “Hold” with an average price target of $54.89.
• Hilton Grand Vacations missed quarterly expectations, reporting $0.89 in EPS versus a $0.94 estimate and $1.36 billion in revenue versus $1.38 billion expected. Insiders also sold 244,411 shares worth approximately $12.4 million over the past three months.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) had its price target lowered by equities research analysts at Morgan Stanley from $58.00 to $54.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target suggests a potential upside of 20.21% from the company's previous close.

A number of other research analysts have also recently weighed in on HGV. The Goldman Sachs Group dropped their price objective on shares of Hilton Grand Vacations from $55.00 to $47.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Truist Financial increased their target price on shares of Hilton Grand Vacations from $67.00 to $71.00 and gave the stock a "buy" rating in a report on Monday, May 18th. Susquehanna began coverage on shares of Hilton Grand Vacations in a research report on Tuesday. They issued a "neutral" rating and a $50.00 price target for the company. Mizuho cut their price objective on Hilton Grand Vacations from $75.00 to $74.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Finally, Wall Street Zen lowered Hilton Grand Vacations from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Three investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Hilton Grand Vacations currently has an average rating of "Hold" and an average target price of $54.89.

Hilton Grand Vacations Stock Performance

Shares of Hilton Grand Vacations stock opened at $44.92 on Tuesday. The stock has a market capitalization of $3.49 billion, a price-to-earnings ratio of 25.38, a price-to-earnings-growth ratio of 0.44 and a beta of 1.53. The company has a debt-to-equity ratio of 6.18, a current ratio of 5.02 and a quick ratio of 3.20. The business has a 50-day moving average of $49.65 and a 200 day moving average of $47.03. Hilton Grand Vacations has a 12 month low of $36.79 and a 12 month high of $55.40.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.94 by ($0.05). The business had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.38 billion. Hilton Grand Vacations had a return on equity of 20.40% and a net margin of 2.86%.The firm's revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter last year, the company earned $0.54 earnings per share. As a group, sell-side analysts forecast that Hilton Grand Vacations will post 4.79 earnings per share for the current year.

Insider Buying and Selling at Hilton Grand Vacations

In other Hilton Grand Vacations news, insider Charles R. Jr. Corbin sold 32,907 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $47.66, for a total value of $1,568,347.62. Following the sale, the insider directly owned 68,615 shares in the company, valued at $3,270,190.90. This trade represents a 32.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark D. Wang sold 190,813 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $51.93, for a total value of $9,908,919.09. Following the transaction, the insider directly owned 904,241 shares of the company's stock, valued at approximately $46,957,235.13. This represents a 17.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 244,411 shares of company stock worth $12,447,675 in the last three months. 3.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Hilton Grand Vacations

Several large investors have recently bought and sold shares of HGV. Leonteq Securities AG boosted its position in shares of Hilton Grand Vacations by 189.7% in the 1st quarter. Leonteq Securities AG now owns 672 shares of the company's stock valued at $26,000 after purchasing an additional 440 shares during the period. EverSource Wealth Advisors LLC raised its position in Hilton Grand Vacations by 743.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 641 shares of the company's stock valued at $27,000 after purchasing an additional 565 shares during the last quarter. Bard Associates Inc. purchased a new position in Hilton Grand Vacations during the 4th quarter worth $29,000. Allworth Financial LP acquired a new position in Hilton Grand Vacations in the second quarter valued at $43,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Hilton Grand Vacations during the fourth quarter worth about $44,000. Institutional investors and hedge funds own 97.23% of the company's stock.

About Hilton Grand Vacations

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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