Travel + Leisure (NYSE:TNL) Trading Down 10.9% - Here's Why

Key Points

• Shares fell 10.9% on Wednesday to about $67.85 on light volume (≈164,750 shares vs. a 647,400 average), with the article not identifying a single clear catalyst for the drop.
• The company beat estimates for the quarter (EPS $1.45 vs. $1.31 expected; revenue $961M), raised its quarterly dividend to $0.60, and has a generally bullish analyst backdrop (8 Buys, consensus target $85.90), but insiders sold roughly 121,738 shares (~$9.14M) last quarter, which may weigh on sentiment.

Travel + Leisure Co. (NYSE:TNL - Get Free Report) shares dropped 10.9% on Wednesday . The company traded as low as $69.72 and last traded at $67.8470. Approximately 164,750 shares were traded during trading, a decline of 75% from the average daily volume of 647,400 shares. The stock had previously closed at $76.15.

Wall Street Analysts Forecast Growth

TNL has been the subject of a number of recent research reports. Citizens Jmp raised their price objective on shares of Travel + Leisure from $80.00 to $90.00 and gave the stock a "market outperform" rating in a research note on Thursday, February 19th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $90.00 price objective on shares of Travel + Leisure in a research note on Friday, February 20th. Mizuho set a $107.00 target price on shares of Travel + Leisure in a research report on Thursday, February 19th. Barclays set a $78.00 target price on shares of Travel + Leisure in a research report on Thursday, February 19th. Finally, Citigroup restated an "outperform" rating on shares of Travel + Leisure in a research report on Thursday, February 19th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, Travel + Leisure currently has an average rating of "Moderate Buy" and a consensus target price of $85.90.

Travel + Leisure Price Performance

The stock's 50-day moving average is $72.91 and its 200-day moving average is $69.63. The stock has a market cap of $4.13 billion, a price-to-earnings ratio of 19.38, a price-to-earnings-growth ratio of 0.58 and a beta of 1.32.

Travel + Leisure (NYSE:TNL - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The company reported $1.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.31 by $0.14. Travel + Leisure had a net margin of 5.74% and a negative return on equity of 47.77%. The firm had revenue of $961.00 million for the quarter, compared to analyst estimates of $954.81 million. During the same quarter last year, the business earned $1.11 earnings per share. Travel + Leisure's revenue was up 2.9% compared to the same quarter last year. Analysts predict that Travel + Leisure Co. will post 7.41 EPS for the current fiscal year.

Travel + Leisure Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 20th were issued a $0.60 dividend. This is a boost from Travel + Leisure's previous quarterly dividend of $0.56. The ex-dividend date was Friday, March 20th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.6%. Travel + Leisure's dividend payout ratio (DPR) is 70.38%.

Insider Buying and Selling at Travel + Leisure

In other Travel + Leisure news, Director George Herrera sold 1,748 shares of Travel + Leisure stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $70.31, for a total value of $122,901.88. Following the transaction, the director owned 1,853 shares in the company, valued at $130,284.43. This trade represents a 48.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Michael Dean Brown sold 66,860 shares of Travel + Leisure stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $74.03, for a total transaction of $4,949,645.80. Following the completion of the transaction, the insider owned 427,821 shares in the company, valued at approximately $31,671,588.63. This trade represents a 13.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 121,738 shares of company stock worth $9,136,054 in the last quarter. 4.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Travel + Leisure

A number of hedge funds have recently made changes to their positions in the stock. Invesco Ltd. boosted its holdings in shares of Travel + Leisure by 4.2% in the 4th quarter. Invesco Ltd. now owns 3,632,657 shares of the company's stock valued at $256,211,000 after purchasing an additional 146,484 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Travel + Leisure by 46.8% in the 2nd quarter. AQR Capital Management LLC now owns 2,682,604 shares of the company's stock valued at $138,449,000 after purchasing an additional 855,151 shares during the last quarter. LSV Asset Management boosted its holdings in shares of Travel + Leisure by 1.1% in the 4th quarter. LSV Asset Management now owns 1,612,657 shares of the company's stock valued at $113,741,000 after purchasing an additional 17,377 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Travel + Leisure by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 1,208,918 shares of the company's stock valued at $85,281,000 after purchasing an additional 10,137 shares during the last quarter. Finally, Morgan Stanley raised its stake in shares of Travel + Leisure by 9.3% in the 4th quarter. Morgan Stanley now owns 906,101 shares of the company's stock valued at $63,907,000 after acquiring an additional 77,135 shares during the period. Institutional investors and hedge funds own 87.54% of the company's stock.

About Travel + Leisure

Travel + Leisure Co NYSE: TNL is a leisure travel company headquartered in Orlando, Florida, that specializes in vacation ownership, membership programs and branded travel experiences. The company operates an extensive portfolio of vacation clubs and destination services, offering members access to resorts, hotels, cruises and guided tours in markets around the world. Through its flagship membership brands, Travel + Leisure Co provides curated vacation packages, exchange services and unique travel itineraries that cater to both individual and family travelers.

In addition to its membership offerings, Travel + Leisure Co manages a network of resort properties and hospitality assets across North America, the Caribbean, Europe and Asia-Pacific.

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