Marriott Vacations Worldwide (NYSE:VAC) Trading Down 5.6% - Here's What Happened

Key Points

• Marriott Vacations Worldwide shares fell 5.6% to about $97.28, with trading volume below average. The stock’s market capitalization is approximately $3.34 billion.
• Analyst sentiment remains mixed: the consensus rating is Hold with a $106.27 price target, despite recent Buy and Strong Buy upgrades. The company’s latest quarterly results exceeded expectations, with $2.31 in EPS and $1.32 billion in revenue.
• The company declared a quarterly dividend of $0.80, equivalent to a 3.3% annualized yield. Insiders recently sold shares, including a director’s sale of 750,000 shares for approximately $83.6 million.

Marriott Vacations Worldwide Corporation (NYSE:VAC - Get Free Report)'s share price fell 5.6% on Tuesday . The company traded as low as $97.60 and last traded at $97.2830. Approximately 434,719 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 540,473 shares. The stock had previously closed at $103.03.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on VAC. The Goldman Sachs Group reissued a "buy" rating and set a $132.00 price target on shares of Marriott Vacations Worldwide in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $134.00 price objective on shares of Marriott Vacations Worldwide in a research note on Wednesday, August 12th. Weiss Ratings raised Marriott Vacations Worldwide from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, August 7th. Zacks Research raised shares of Marriott Vacations Worldwide from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. Finally, Susquehanna began coverage on Marriott Vacations Worldwide in a research report on Tuesday, August 18th. They set a "neutral" rating and a $110.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $106.27.

Marriott Vacations Worldwide Stock Down 5.8%

The firm has a market cap of $3.34 billion, a PE ratio of -9.97, a PEG ratio of 1.96 and a beta of 1.24. The company has a debt-to-equity ratio of 2.65, a quick ratio of 2.99 and a current ratio of 3.56. The company's 50-day simple moving average is $105.90 and its two-hundred day simple moving average is $88.81.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $2.31 earnings per share for the quarter, topping the consensus estimate of $1.97 by $0.34. The business had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. Marriott Vacations Worldwide had a positive return on equity of 12.27% and a negative net margin of 6.47%.The business's revenue was up 5.9% on a year-over-year basis. During the same quarter last year, the business posted $1.96 EPS. Marriott Vacations Worldwide has set its FY 2026 guidance at 8.250-9.050 EPS. On average, analysts predict that Marriott Vacations Worldwide Corporation will post 8.7 earnings per share for the current fiscal year.

Marriott Vacations Worldwide Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be paid a $0.80 dividend. The ex-dividend date is Wednesday, September 16th. This represents a $3.20 annualized dividend and a dividend yield of 3.3%. Marriott Vacations Worldwide's dividend payout ratio is presently -32.85%.

Insider Activity

In other news, Director Christian Asmar sold 750,000 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $111.49, for a total transaction of $83,617,500.00. Following the completion of the sale, the director owned 3,380,818 shares of the company's stock, valued at $376,927,398.82. This represents a 18.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Kathleen A. Pighini sold 2,500 shares of Marriott Vacations Worldwide stock in a transaction on Monday, August 17th. The stock was sold at an average price of $120.00, for a total transaction of $300,000.00. Following the transaction, the insider owned 10,821 shares in the company, valued at $1,298,520. This represents a 18.77% decrease in their position. The SEC filing for this sale provides additional information. 13.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Marriott Vacations Worldwide

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. LSV Asset Management lifted its stake in Marriott Vacations Worldwide by 7.9% in the fourth quarter. LSV Asset Management now owns 204,657 shares of the company's stock worth $11,807,000 after purchasing an additional 15,025 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Marriott Vacations Worldwide in the second quarter worth approximately $17,975,000. Illinois Municipal Retirement Fund bought a new stake in shares of Marriott Vacations Worldwide during the 1st quarter worth approximately $868,000. Public Employees Retirement System of Ohio lifted its stake in shares of Marriott Vacations Worldwide by 51.2% during the 1st quarter. Public Employees Retirement System of Ohio now owns 65,679 shares of the company's stock worth $4,277,000 after acquiring an additional 22,236 shares during the last quarter. Finally, Deutsche Bank AG purchased a new position in Marriott Vacations Worldwide during the 2nd quarter valued at $10,966,000. 89.52% of the stock is owned by hedge funds and other institutional investors.

Marriott Vacations Worldwide Company Profile

Marriott Vacations Worldwide Corporation NYSE: VAC is a vacation ownership and leisure travel company. It develops, markets, sells, and manages vacation ownership interests, including timeshare and related membership products, that provide customers with access to resort accommodations and vacation experiences.

The company operates a portfolio of vacation ownership brands that includes Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, Grand Residences by Marriott, and Hyatt Vacation Club.

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