Hilton Grand Vacations (NYSE:HGV) Hits New 12-Month Low - Time to Sell?

Key Points

• Hilton Grand Vacations shares hit a new 52-week low, falling 2.3% to approximately $36.97 and trading well below their 50- and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with a $54.67 target price, despite several recent target-price reductions. The company’s latest quarterly results also fell slightly short of earnings and revenue expectations.
• HGV authorized a $600 million share-repurchase program, covering up to 17% of outstanding shares, while institutional investors own roughly 97% of the stock.

Hilton Grand Vacations Inc. (NYSE:HGV - Get Free Report)'s stock price hit a new 52-week low on Wednesday . The stock traded as low as $36.63 and last traded at $36.9710, with a volume of 540377 shares traded. The stock had previously closed at $37.91.

Wall Street Analysts Forecast Growth

HGV has been the subject of a number of recent research reports. Barclays reduced their price target on shares of Hilton Grand Vacations from $51.00 to $46.00 and set an "equal weight" rating for the company in a research report on Friday, July 31st. Weiss Ratings reiterated a "hold (c)" rating on shares of Hilton Grand Vacations in a research note on Wednesday, August 26th. Mizuho reduced their target price on shares of Hilton Grand Vacations from $75.00 to $74.00 and set an "outperform" rating for the company in a report on Friday, July 31st. Susquehanna began coverage on shares of Hilton Grand Vacations in a report on Tuesday, August 18th. They set a "neutral" rating and a $50.00 target price for the company. Finally, Morgan Stanley decreased their target price on shares of Hilton Grand Vacations from $58.00 to $54.00 and set an "equal weight" rating for the company in a research report on Tuesday, August 18th. Four equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Hilton Grand Vacations currently has a consensus rating of "Hold" and a consensus target price of $54.67.

Hilton Grand Vacations Stock Down 2.3%

The company has a market cap of $2.88 billion, a price-to-earnings ratio of 21.00, a PEG ratio of 0.38 and a beta of 1.50. The business has a fifty day moving average of $45.58 and a two-hundred day moving average of $46.39. The company has a current ratio of 5.02, a quick ratio of 3.20 and a debt-to-equity ratio of 6.18.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.89 EPS for the quarter, missing analysts' consensus estimates of $0.94 by ($0.05). Hilton Grand Vacations had a net margin of 2.86% and a return on equity of 20.40%. The business had revenue of $1.36 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter last year, the firm earned $0.54 earnings per share. The firm's quarterly revenue was up 7.3% compared to the same quarter last year. As a group, equities analysts anticipate that Hilton Grand Vacations Inc. will post 4.61 EPS for the current fiscal year.

Hilton Grand Vacations announced that its Board of Directors has approved a stock repurchase program on Thursday, August 20th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the company to buy up to 17% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board believes its shares are undervalued.

Insider Transactions at Hilton Grand Vacations

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $46.90, for a total transaction of $970,407.90. Following the transaction, the insider directly owned 47,924 shares of the company's stock, valued at $2,247,635.60. This trade represents a 30.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 3.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Hilton Grand Vacations during the second quarter valued at approximately $422,842,000. Dimensional Fund Advisors LP lifted its holdings in Hilton Grand Vacations by 1.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,869,731 shares of the company's stock valued at $151,375,000 after purchasing an additional 60,624 shares in the last quarter. Parsifal Capital Management LP purchased a new position in Hilton Grand Vacations in the 2nd quarter valued at $108,863,038. Geode Capital Management LLC boosted its stake in Hilton Grand Vacations by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 1,472,796 shares of the company's stock worth $65,919,000 after purchasing an additional 25,020 shares during the last quarter. Finally, TrinityBridge Ltd purchased a new stake in shares of Hilton Grand Vacations during the second quarter worth $52,540,000. 97.23% of the stock is owned by hedge funds and other institutional investors.

About Hilton Grand Vacations

Hilton Grand Vacations Inc NYSE: HGV is a vacation ownership company that develops, markets, sells and manages timeshare interests and related vacation experiences. Its products generally provide members with an allotment of vacation time or points that can be used at participating resorts and accommodations.

The company serves vacation owners through resort properties and membership programs under brands including Hilton Grand Vacations, The Hilton Club and HGV Max. Its offerings may include access to resort accommodations, exchange programs, travel services and other member benefits.

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