Vail Resorts, Inc. (NYSE:MTN) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Hold consensus: 14 analysts rate Vail Resorts an average "Hold" (2 sell, 7 hold, 5 buy) with a 12‑month average target of $161.82.
• Missed estimates: Vail reported Q EPS of $5.87 vs. $6.06 expected and revenue of $1.08B vs. $1.11B, with a warm winter contributing to a 4.7% YoY revenue decline.
• Regulatory risk: New Hampshire has opened an investigation into Vail’s "blended" sales tax on Epic Passes, raising potential refund, penalty, compliance and reputational risks that could affect bookings and pricing.

Shares of Vail Resorts, Inc. (NYSE:MTN - Get Free Report) have received an average rating of "Hold" from the fourteen research firms that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $161.8182.

MTN has been the subject of several research analyst reports. Stifel Nicolaus lowered their price objective on Vail Resorts from $175.00 to $172.00 and set a "buy" rating for the company in a research report on Tuesday, March 10th. Truist Financial decreased their target price on Vail Resorts from $217.00 to $212.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft decreased their target price on Vail Resorts from $159.00 to $151.00 and set a "hold" rating for the company in a research report on Friday, March 6th. BNP Paribas Exane reaffirmed an "outperform" rating on shares of Vail Resorts in a research report on Tuesday, March 10th. Finally, Jefferies Financial Group raised Vail Resorts from a "hold" rating to a "buy" rating and boosted their target price for the company from $159.00 to $165.00 in a research report on Tuesday, January 13th.

Vail Resorts Stock Performance

MTN stock opened at $122.07 on Thursday. The stock has a 50-day moving average price of $132.44 and a 200-day moving average price of $139.15. Vail Resorts has a 1-year low of $118.51 and a 1-year high of $175.51. The company has a current ratio of 0.62, a quick ratio of 0.51 and a debt-to-equity ratio of 4.43. The firm has a market cap of $4.35 billion, a PE ratio of 19.91, a price-to-earnings-growth ratio of 9.76 and a beta of 0.79.

Vail Resorts (NYSE:MTN - Get Free Report) last posted its quarterly earnings data on Monday, March 9th. The company reported $5.87 earnings per share for the quarter, missing the consensus estimate of $6.06 by ($0.19). Vail Resorts had a return on equity of 29.72% and a net margin of 7.89%.The business had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.11 billion. During the same period last year, the business posted $6.56 earnings per share. The business's revenue was down 4.7% on a year-over-year basis. As a group, equities research analysts expect that Vail Resorts will post 5 earnings per share for the current year.

Vail Resorts Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Thursday, March 26th were given a $2.22 dividend. This represents a $8.88 dividend on an annualized basis and a yield of 7.3%. The ex-dividend date of this dividend was Thursday, March 26th. Vail Resorts's payout ratio is presently 144.86%.

Key Stories Impacting Vail Resorts

Here are the key news stories impacting Vail Resorts this week:

• Positive Sentiment: Vail published its summer operations schedule, confirming lift, lodging and on-mountain programming that support non-winter revenue and help smooth seasonality; this can help summer visitation, F&B and lodging revenue. Vail Resorts announces summer operations schedule
• Negative Sentiment: New Hampshire officials have launched an investigation and the governor directed the attorney general to probe Vail’s practice of charging a “blended” sales tax on Epic Pass purchases; state leaders and customers have voiced outrage. The probe raises potential refund, penalty and compliance costs, plus reputational risk that could dent bookings or force changes to pass pricing/collection practices. Multiple outlets report the inquiry and political scrutiny. Vail Resorts add sales tax to Epic Pass purchases, sparking outrage NH launches investigation into Vail Resort’s Epic ski pass ‘blended sales tax’

Insider Transactions at Vail Resorts

In other news, CFO Angela A. Korch bought 190 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The stock was acquired at an average cost of $131.85 per share, with a total value of $25,051.50. Following the transaction, the chief financial officer directly owned 5,539 shares of the company's stock, valued at approximately $730,317.15. This represents a 3.55% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Robert A. Katz bought 37,500 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The stock was purchased at an average cost of $131.81 per share, with a total value of $4,942,875.00. Following the completion of the transaction, the chief executive officer directly owned 285,312 shares in the company, valued at $37,606,974.72. This represents a 15.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 1.20% of the company's stock.

Institutional Trading of Vail Resorts

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bamco Inc. NY boosted its stake in Vail Resorts by 4.1% during the 3rd quarter. Bamco Inc. NY now owns 5,702,692 shares of the company's stock valued at $852,952,000 after purchasing an additional 227,143 shares during the last quarter. Capital International Investors boosted its stake in Vail Resorts by 1.5% during the 3rd quarter. Capital International Investors now owns 5,002,662 shares of the company's stock valued at $748,248,000 after purchasing an additional 74,528 shares during the last quarter. Capital World Investors boosted its stake in Vail Resorts by 6.1% during the 4th quarter. Capital World Investors now owns 3,196,445 shares of the company's stock valued at $424,488,000 after purchasing an additional 182,982 shares during the last quarter. Oasis Management Co Ltd. boosted its stake in Vail Resorts by 8.3% during the 4th quarter. Oasis Management Co Ltd. now owns 1,851,234 shares of the company's stock valued at $245,844,000 after purchasing an additional 141,500 shares during the last quarter. Finally, UBS Group AG boosted its stake in Vail Resorts by 22.4% during the 3rd quarter. UBS Group AG now owns 713,531 shares of the company's stock valued at $106,723,000 after purchasing an additional 130,460 shares during the last quarter. 94.90% of the stock is owned by institutional investors.

About Vail Resorts

Vail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company's signature Epic Pass program offers skiers and snowboarders season‐long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.

Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.

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