Hilton Grand Vacations (NYSE:HGV) Shares Up 6.7% Following Better-Than-Expected Earnings

Key Points

• Hilton Grand Vacations shares rose 6.7% after the company reported adjusted EPS of $4.03, far above the $1.08 consensus estimate, while revenue reached $1.96 billion, up 50.8% year over year.
• The company authorized a $600 million share-repurchase plan, including a $200 million accelerated buyback agreement with Deutsche Bank, potentially reducing shares outstanding and supporting per-share results.
• Analyst sentiment remains mixed: HGV has an average “Hold” rating and a $49.90 average price target, while management forecast 2026 adjusted EBITDA of $1.165 billion to $1.180 billion.

Shares of Hilton Grand Vacations Inc. (NYSE:HGV - Get Free Report) rose 6.7% during trading on Friday following a stronger than expected earnings report. The company traded as high as $38.02 and last traded at $38.1180. 1,156,774 shares were traded during mid-day trading, an increase of 16% from the average daily volume of 994,811 shares. The stock had previously closed at $35.71.

The company reported $4.03 EPS for the quarter, topping the consensus estimate of $1.08 by $2.95. Hilton Grand Vacations had a return on equity of 20.40% and a net margin of 2.86%. The business had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the business earned $0.60 EPS. Hilton Grand Vacations's revenue was up 50.8% compared to the same quarter last year.

Hilton Grand Vacations declared that its board has authorized a share buyback plan on Thursday, August 20th that authorizes the company to buy back $600 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 17% of its stock through open market purchases. Share repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Key Headlines Impacting Hilton Grand Vacations

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

• Positive Sentiment: Hilton Grand Vacations entered into an uncollared $200 million accelerated share repurchase agreement with Deutsche Bank. The transaction is expected to reduce shares outstanding and provide near-term support for per-share results. Hilton Grand Vacations Signs $200 Million Accelerated Share Repurchase Deal With Deutsche Bank
• Positive Sentiment: Third-quarter results significantly exceeded expectations: adjusted earnings were $4.03 per share versus consensus estimates near $1.01-$1.08, while revenue reached $1.96 billion against estimates of approximately $1.39 billion. Revenue rose 50.8% year over year, compared with $0.60 per share in the prior-year quarter. Hilton Grand Vacations Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management forecast 2026 adjusted EBITDA of $1.165 billion to $1.180 billion following a guidance reset, giving investors a clearer outlook for profitability and cash generation. Hilton Grand Vacations Forecasts 2026 Adjusted EBITDA
• Neutral Sentiment: Hilton Grand Vacations appointed Mike Riley as executive vice president and chief sales and marketing officer. The change could support future sales execution, although its financial impact is not yet clear. Hilton Grand Vacations Appoints Mike Riley

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Zacks Research downgraded shares of Hilton Grand Vacations from a "hold" rating to a "strong sell" rating in a report on Monday, October 5th. Truist Financial dropped their target price on Hilton Grand Vacations from $71.00 to $69.00 and set a "buy" rating on the stock in a research report on Thursday, September 10th. Citigroup reaffirmed a "market outperform" rating on shares of Hilton Grand Vacations in a research note on Friday, September 4th. JPMorgan Chase & Co. assumed coverage on shares of Hilton Grand Vacations in a research note on Thursday, October 8th. They set a "neutral" rating and a $39.00 price objective for the company. Finally, The Goldman Sachs Group lowered their target price on Hilton Grand Vacations from $40.00 to $35.00 and set a "neutral" rating on the stock in a research report on Friday. Four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $49.90.

Insider Transactions at Hilton Grand Vacations

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of the business's 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 sale, the insider directly owned 47,924 shares of the company's stock, valued at $2,247,635.60. The trade was a 30.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 3.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. State of Wyoming increased its position in shares of Hilton Grand Vacations by 71.9% during the third quarter. State of Wyoming now owns 10,226 shares of the company's stock valued at $354,000 after acquiring an additional 4,278 shares during the last quarter. Iridian Asset Management LLC CT boosted its position in Hilton Grand Vacations by 54.5% during the third quarter. Iridian Asset Management LLC CT now owns 711,664 shares of the company's stock worth $24,666,000 after purchasing an additional 251,068 shares during the period. Sterling Capital Management LLC lifted its stake in shares of Hilton Grand Vacations by 912.6% during the 3rd quarter. Sterling Capital Management LLC now owns 2,015 shares of the company's stock valued at $70,000 after buying an additional 1,816 shares in the last quarter. State of Alaska Department of Revenue boosted its holdings in shares of Hilton Grand Vacations by 63.3% in the third quarter. State of Alaska Department of Revenue now owns 9,611 shares of the company's stock worth $333,000 after acquiring an additional 3,727 shares during the period. Finally, Tidal Investments LLC purchased a new position in Hilton Grand Vacations during the 2nd quarter valued at about $231,000. Institutional investors own 97.23% of the company's stock.

Hilton Grand Vacations Stock Up 7.0%

The company's 50 day simple moving average is $37.87 and its 200-day simple moving average is $44.66. The company has a debt-to-equity ratio of 6.18, a quick ratio of 3.20 and a current ratio of 5.02. The firm has a market capitalization of $2.97 billion, a PE ratio of 21.58, a PEG ratio of 0.36 and a beta of 1.61.

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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