Hilton Grand Vacations (NYSE:HGV) Shares Break Above 50 Day Moving Average Following Analyst Downgrade

Key Points

• Hilton Grand Vacations shares rose 7.8% and broke above their 50-day moving average, reaching $38.58 after Morgan Stanley raised its price target to $58 while maintaining an equal-weight rating.
• The company reported a major third-quarter beat, with adjusted EPS of $4.03 versus the $1.08 consensus and revenue of $1.96 billion, up 50.8% year over year. Analysts nevertheless maintain a consensus “Hold” rating with a $49.80 price target.
• HGV is supporting shareholders through a $600 million buyback authorization, including a $200 million accelerated repurchase agreement, while management projects 2026 adjusted EBITDA of approximately $1.165 billion to $1.180 billion.

Hilton Grand Vacations Inc. (NYSE:HGV - Get Free Report) passed above its 50 day moving average during trading on Friday after Morgan Stanley raised their price target on the stock from $55.00 to $58.00. The stock has a 50 day moving average of $37.74 and traded as high as $38.58. Morgan Stanley currently has an equal weight rating on the stock. Hilton Grand Vacations shares last traded at $38.4860, with a volume of 1,877,914 shares.

Other equities research analysts have also recently issued reports about the stock. Truist Financial boosted their price objective on shares of Hilton Grand Vacations from $67.00 to $71.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Wells Fargo & Company dropped their target price on shares of Hilton Grand Vacations from $49.00 to $47.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 16th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hilton Grand Vacations in a research report on Friday, May 29th. Zacks Research downgraded shares of Hilton Grand Vacations from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 9th. Finally, Wall Street Zen raised shares of Hilton Grand Vacations from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 2nd. Four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $49.80.

Insider Buying and Selling 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 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 in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through this link. Insiders own 3.10% of the company's stock.

More Hilton Grand Vacations News

Here are the key news stories impacting Hilton Grand Vacations this week:

• Positive Sentiment: Accelerated share buyback: HGV entered into an uncollared $200 million accelerated share-repurchase agreement with Deutsche Bank. The program should reduce shares outstanding, potentially support earnings per share, and signal management’s confidence in the stock’s valuation. Hilton Grand Vacations Starts Accelerated Share Buyback
• Positive Sentiment: Strong third-quarter earnings: Hilton Grand Vacations reported adjusted earnings of $4.03 per share, far above the $1.08 analyst consensus and up from $0.60 a year earlier. Revenue reached $1.96 billion versus the $1.39 billion estimate, increasing 50.8% year over year. The large earnings and revenue beats are the primary catalyst for the stock’s advance. Hilton Grand Vacations Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Updated outlook: Management forecast 2026 adjusted EBITDA of approximately $1.165 billion to $1.180 billion following a guidance reset, giving investors a clearer view of expected profitability. Hilton Grand Vacations Forecasts 2026 Adjusted EBITDA
• Neutral Sentiment: HGV appointed Mike Riley as executive vice president and chief sales and marketing officer. The change could influence future sales execution, but its near-term financial impact is unclear. Hilton Grand Vacations Appoints Mike Riley

Hedge Funds Weigh In On Hilton Grand Vacations

A number of large investors have recently bought and sold shares of the business. Persistent Asset Partners Ltd purchased a new position in shares of Hilton Grand Vacations in the 2nd quarter worth approximately $63,000. Oregon Public Employees Retirement Fund raised its stake in shares of Hilton Grand Vacations by 3.4% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 12,322 shares of the company's stock worth $482,000 after acquiring an additional 400 shares in the last quarter. Leonteq Securities AG lifted its position in Hilton Grand Vacations by 189.7% during the first quarter. Leonteq Securities AG now owns 672 shares of the company's stock valued at $26,000 after acquiring an additional 440 shares during the last quarter. Nykredit A S purchased a new stake in Hilton Grand Vacations during the second quarter valued at approximately $38,000. Finally, Allworth Financial LP purchased a new stake in Hilton Grand Vacations during the second quarter valued at approximately $43,000. Institutional investors own 97.23% of the company's stock.

Hilton Grand Vacations Trading Up 7.8%

The company has a market capitalization of $2.99 billion, a price-to-earnings ratio of 7.42, a P/E/G ratio of 0.36 and a beta of 1.61. The company has a quick ratio of 3.20, a current ratio of 5.15 and a debt-to-equity ratio of 5.29. The company's 50 day simple moving average is $37.74 and its two-hundred day simple moving average is $44.61.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $4.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $2.95. The business had revenue of $1.96 billion for the quarter, compared to analyst estimates of $1.39 billion. Hilton Grand Vacations had a net margin of 7.02% and a return on equity of 39.73%. The business's revenue for the quarter was up 50.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.60 earnings per share. As a group, research analysts anticipate that Hilton Grand Vacations Inc. will post 4.48 earnings per share for the current fiscal year.

Hilton Grand Vacations announced that its board has authorized a share buyback program on Thursday, August 20th that allows the company to repurchase $600 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 17% of its stock through open market purchases. Share repurchase programs are usually a sign that the company's board believes its shares are undervalued.

About Hilton Grand Vacations

Hilton Grand Vacations Inc NYSE: HGV is a global vacation ownership company that markets and sells vacation intervals, points-based memberships and related travel experiences. Its portfolio includes branded vacation ownership resorts and accommodations in popular leisure destinations, with products designed to provide members with recurring access to vacation properties.

The company also provides resort management, reservation and customer services, financing for vacation ownership purchases, and exchange and travel-planning services.

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