Hilton Grand Vacations (NYSE:HGV) Hits New 52-Week Low - What's Next?

Key Points

• Hilton Grand Vacations fell to a new 52-week low of $34.95, with the stock trading near $35.56 and down significantly below its 50-day and 200-day moving averages.
• Analysts maintain a broadly cautious view: four rate HGV a “Buy” and eight a “Hold,” producing an average “Hold” rating and a consensus price target of $54.67. Several firms recently lowered their targets.
• The company missed quarterly earnings and revenue expectations, despite year-over-year revenue growth, while its board authorized a $600 million share buyback covering up to 17% of outstanding shares.

Hilton Grand Vacations Inc. (NYSE:HGV - Get Free Report) reached a new 52-week low during trading on Tuesday . The company traded as low as $34.95 and last traded at $35.56, with a volume of 1667499 shares. The stock had previously closed at $35.59.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. The Goldman Sachs Group cut 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 dropped their target price on shares of Hilton Grand Vacations from $71.00 to $69.00 and set a "buy" rating for the company in a research report on Thursday, September 10th. Mizuho cut 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 research note on Friday, July 31st. Barclays reduced their target price on Hilton Grand Vacations from $51.00 to $46.00 and set an "equal weight" rating on the stock in a report on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hilton Grand Vacations in a research note on Wednesday, August 26th. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $54.67.

Hilton Grand Vacations Trading Down 0.1%

The firm has a market cap of $2.76 billion, a PE ratio of 20.09, a P/E/G ratio of 0.35 and a beta of 1.50. The company has a quick ratio of 3.20, a current ratio of 5.02 and a debt-to-equity ratio of 6.18. The company's 50 day moving average price is $44.49 and its two-hundred day moving average price is $46.15.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last released its quarterly earnings results 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 return on equity of 20.40% and a net margin of 2.86%.The firm had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.38 billion. During the same period in the prior year, the firm posted $0.54 earnings per share. Hilton Grand Vacations's revenue for the quarter was up 7.3% on a year-over-year basis. As a group, sell-side analysts forecast that Hilton Grand Vacations Inc. will post 4.61 EPS for the current year.

Hilton Grand Vacations declared that its Board of Directors has initiated a stock buyback plan on Thursday, August 20th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the company to reacquire up to 17% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Hilton Grand Vacations

In other news, insider Charles Corbin, Jr. sold 20,691 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $46.90, for a total value of $970,407.90. Following the sale, the insider directly owned 47,924 shares in the company, valued at approximately $2,247,635.60. This represents a 30.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 3.10% of the company's stock.

Institutional Trading of Hilton Grand Vacations

A number of large investors have recently modified their holdings of HGV. Persistent Asset Partners Ltd bought a new stake in shares of Hilton Grand Vacations in the second quarter valued at about $63,000. Oregon Public Employees Retirement Fund increased its holdings in shares of Hilton Grand Vacations by 3.4% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 12,322 shares of the company's stock valued at $482,000 after acquiring an additional 400 shares during the period. Leonteq Securities AG raised its holdings in Hilton Grand Vacations by 189.7% in the first quarter. Leonteq Securities AG now owns 672 shares of the company's stock worth $26,000 after purchasing an additional 440 shares in the last quarter. Bard Associates Inc. bought a new position in shares of Hilton Grand Vacations during the 4th quarter worth approximately $29,000. Finally, Nykredit A S acquired a new position in shares of Hilton Grand Vacations during the second quarter worth $38,000. Hedge funds and other institutional investors own 97.23% of the company's stock.

Hilton Grand Vacations Company Profile

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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