Wyndham Hotels & Resorts (NYSE:WH) Stock Price Breaks Above Two Hundred Day Moving Average - Here's Why

Key Points

• Wyndham Hotels & Resorts shares broke above their 200-day moving average, reaching $79.51 and last trading near $78.49, compared with the moving average of $77.85.
• Analysts remain broadly positive, with nine Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $94.67.
• The company exceeded quarterly earnings expectations, reporting $1.43 in EPS and $410 million in revenue, while also maintaining a $0.43 quarterly dividend and authorizing a $400 million share-repurchase plan.

Wyndham Hotels & Resorts (NYSE:WH - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $77.85 and traded as high as $79.51. Wyndham Hotels & Resorts shares last traded at $78.4850, with a volume of 1,471,443 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on WH shares. Stifel Nicolaus boosted their target price on Wyndham Hotels & Resorts from $98.00 to $99.00 and gave the stock a "buy" rating in a research note on Thursday, October 22nd. Truist Financial reduced their price target on Wyndham Hotels & Resorts from $107.00 to $104.00 and set a "buy" rating on the stock in a research report on Thursday, September 10th. Mizuho set a $95.00 price objective on Wyndham Hotels & Resorts in a research note on Friday, October 23rd. JPMorgan Chase & Co. decreased their price objective on Wyndham Hotels & Resorts from $100.00 to $97.00 and set an "overweight" rating for the company in a research note on Tuesday, July 21st. Finally, Weiss Ratings downgraded Wyndham Hotels & Resorts from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 23rd. Nine investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $94.67.

Wyndham Hotels & Resorts Price Performance

The firm has a market capitalization of $5.72 billion, a PE ratio of 29.18, a P/E/G ratio of 1.75 and a beta of 0.67. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 5.69. The company has a fifty day moving average price of $72.46 and a two-hundred day moving average price of $77.85.

Wyndham Hotels & Resorts (NYSE:WH - Get Free Report) last announced its earnings results on Wednesday, October 21st. The company reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.11. The business had revenue of $410.00 million for the quarter, compared to analysts' expectations of $408.99 million. Wyndham Hotels & Resorts had a net margin of 13.97% and a return on equity of 77.43%. The company's quarterly revenue was up 7.3% on a year-over-year basis. During the same period in the previous year, the company posted $1.46 EPS. Sell-side analysts forecast that Wyndham Hotels & Resorts will post 4.88 earnings per share for the current year.

Wyndham Hotels & Resorts Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Tuesday, September 15th. Wyndham Hotels & Resorts's dividend payout ratio (DPR) is currently 63.94%.

Wyndham Hotels & Resorts announced that its board has approved a share repurchase plan on Tuesday, September 29th that allows the company to repurchase $400 million in outstanding shares. This repurchase authorization allows the company to buy up to 7.6% of its shares through open market purchases. Share repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Wyndham Hotels & Resorts news, CEO Geoffrey Ballotti sold 19,295 shares of the business's stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $73.69, for a total transaction of $1,421,848.55. Following the sale, the chief executive officer directly owned 550,457 shares in the company, valued at approximately $40,563,176.33. The trade was a 3.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.33% of the company's stock.

Hedge Funds Weigh In On Wyndham Hotels & Resorts

Several hedge funds have recently bought and sold shares of the stock. International Assets Investment Management LLC boosted its stake in Wyndham Hotels & Resorts by 3,579.4% in the third quarter. International Assets Investment Management LLC now owns 4,636 shares of the company's stock valued at $331,000 after acquiring an additional 4,510 shares during the period. Corbyn Investment Management Inc. MD raised its position in shares of Wyndham Hotels & Resorts by 18.9% during the 3rd quarter. Corbyn Investment Management Inc. MD now owns 27,961 shares of the company's stock worth $2,009,000 after purchasing an additional 4,453 shares during the period. Covestor Ltd raised its position in shares of Wyndham Hotels & Resorts by 55.4% during the 3rd quarter. Covestor Ltd now owns 586 shares of the company's stock worth $42,000 after purchasing an additional 209 shares during the period. Provenance Wealth Advisors LLC bought a new stake in shares of Wyndham Hotels & Resorts in the 3rd quarter worth approximately $33,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al lifted its holdings in shares of Wyndham Hotels & Resorts by 138.0% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 11,900 shares of the company's stock worth $855,000 after purchasing an additional 6,900 shares during the last quarter. Hedge funds and other institutional investors own 93.46% of the company's stock.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc is a global hotel franchising company that operates an asset-light lodging business. Rather than owning and managing most of its hotels, the company licenses its brands and provides franchisees with support in areas such as marketing, reservations, technology, training and operational standards.

Its portfolio includes a range of economy, midscale and upscale hotel brands, including Super 8, Days Inn, Ramada, La Quinta, Microtel, Baymont, Wingate, AmericInn, Wyndham, Wyndham Garden, Registry Collection Hotels and ECHO Suites Extended Stay by Wyndham.

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