Hilton Grand Vacations (NYSE:HGV) Reaches New 1-Year Low - Here's Why

Key Points

• Hilton Grand Vacations shares hit a new 52-week low of $33.99 and were last trading near $34.01, below both their 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with recent downgrades and price-target cuts; the stock carries a consensus “Hold” rating and an average target price of $54.67.
• The company reported quarterly earnings and revenue below analyst expectations but authorized a $600 million stock buyback, allowing repurchases of up to 17% of outstanding shares.

Hilton Grand Vacations Inc. (NYSE:HGV - Get Free Report)'s stock price reached a new 52-week low on Tuesday. The stock traded as low as $33.99 and last traded at $34.01, with a volume of 1201646 shares trading hands. The stock had previously closed at $34.86.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on HGV shares. Zacks Research downgraded Hilton Grand Vacations from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 9th. Weiss Ratings downgraded Hilton Grand Vacations from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday. Truist Financial reduced their price target 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. Morgan Stanley decreased their price target on shares of Hilton Grand Vacations from $58.00 to $54.00 and set an "equal weight" rating for the company in a report on Tuesday, August 18th. Finally, Wall Street Zen downgraded shares of Hilton Grand Vacations from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $54.67.

Hilton Grand Vacations Trading Down 2.4%

The business has a 50-day moving average of $41.61 and a 200-day moving average of $45.61. 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 stock has a market cap of $2.64 billion, a price-to-earnings ratio of 19.21, a PEG ratio of 0.36 and a beta of 1.61.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $0.89 earnings per share for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the company earned $0.54 earnings per share. The business's revenue for the quarter was up 7.3% on a year-over-year basis. As a group, research analysts forecast that Hilton Grand Vacations Inc. will post 4.4 earnings per share for the current year.

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

Insider Buying and Selling

In other 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 owned 47,924 shares in the company, valued at $2,247,635.60. This represents a 30.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 3.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hilton Grand Vacations

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

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc NYSE: HGV is a global vacation ownership company that develops, markets, sells and manages timeshare interests and related travel experiences. Through its vacation ownership programs, customers purchase points or interests that can be used for stays at a network of resorts and accommodations, often with access to exchange and reservation services.

The company operates a portfolio of vacation ownership brands and offerings, including Hilton Grand Vacations, Hilton Club, HGV Max and properties associated with Diamond Resorts and Bluegreen Vacations.

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