Travel + Leisure (NYSE:TNL) Sets New 12-Month High Following Strong Earnings

Key Points

• Travel + Leisure Co. (NYSE:TNL) achieved a new 12-month high of $68.76 after reporting better-than-expected earnings, with an EPS of $1.80 compared to the consensus estimate of $1.72.
• The company also declared a quarterly dividend of $0.56 per share, reflecting an annual yield of 3.3% and a payout ratio of 38.62%.
• Analysts have mixed views on TNL stock, with nine ratings as "Buy," one as "Hold," and one as "Sell," while JMP Securities adjusted its price target to $70.00.

Travel + Leisure Co. (NYSE:TNL - Get Free Report) reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $68.20 and last traded at $68.76, with a volume of 290632 shares traded. The stock had previously closed at $60.67.

The company reported $1.80 EPS for the quarter, topping the consensus estimate of $1.72 by $0.08. The firm had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.03 billion. Travel + Leisure had a net margin of 10.14% and a negative return on equity of 47.47%. The business's revenue was up 5.1% compared to the same quarter last year. During the same period last year, the firm posted $1.57 earnings per share.

Travel + Leisure Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Friday, September 12th were given a dividend of $0.56 per share. This represents a $2.24 annualized dividend and a yield of 3.3%. The ex-dividend date was Friday, September 12th. Travel + Leisure's dividend payout ratio (DPR) is presently 38.62%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on TNL. Weiss Ratings restated a "buy (b)" rating on shares of Travel + Leisure in a research report on Wednesday, October 8th. Barclays raised their price target on Travel + Leisure from $39.00 to $54.00 and gave the stock an "underweight" rating in a research report on Thursday, July 24th. JMP Securities raised their price target on Travel + Leisure from $60.00 to $70.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 24th. Wall Street Zen lowered Travel + Leisure from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Mizuho upgraded Travel + Leisure from a "neutral" rating to an "outperform" rating and boosted their price target for the company from $63.00 to $72.00 in a report on Thursday, July 24th. Nine research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $63.90.

Insider Transactions at Travel + Leisure

In other news, insider Geoffrey Richards sold 124,454 shares of the business's stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $62.56, for a total value of $7,785,842.24. Following the sale, the insider directly owned 118,718 shares of the company's stock, valued at $7,426,998.08. The trade was a 51.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Michael Dean Brown purchased 1,500 shares of the company's stock in a transaction dated Friday, August 1st. The stock was bought at an average cost of $58.39 per share, for a total transaction of $87,585.00. Following the completion of the transaction, the insider owned 427,821 shares in the company, valued at approximately $24,980,468.19. This represents a 0.35% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders sold 250,443 shares of company stock worth $15,634,728. Company insiders own 3.75% of the company's stock.

Institutional Trading of Travel + Leisure

Hedge funds have recently made changes to their positions in the stock. Hillsdale Investment Management Inc. bought a new position in Travel + Leisure in the 2nd quarter valued at approximately $27,000. Elequin Capital LP bought a new stake in shares of Travel + Leisure in the 1st quarter worth $30,000. Parkside Financial Bank & Trust increased its holdings in shares of Travel + Leisure by 155.3% in the 2nd quarter. Parkside Financial Bank & Trust now owns 628 shares of the company's stock worth $32,000 after purchasing an additional 382 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in shares of Travel + Leisure by 293.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 959 shares of the company's stock worth $44,000 after purchasing an additional 715 shares in the last quarter. Finally, DekaBank Deutsche Girozentrale bought a new stake in shares of Travel + Leisure in the 2nd quarter worth $45,000. 87.54% of the stock is owned by institutional investors.

Travel + Leisure Stock Performance

The firm has a market cap of $4.43 billion, a P/E ratio of 11.74, a price-to-earnings-growth ratio of 0.58 and a beta of 1.47. The stock has a fifty day simple moving average of $61.11 and a 200 day simple moving average of $54.32.

Travel + Leisure Company Profile

Travel + Leisure Co, together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts.

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