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

Key Points

• Analysts remain cautious on Vail Resorts: The stock has a consensus recommendation of “Hold” from 14 covering firms, with 3 sell ratings, 6 hold ratings, and 5 buy ratings. The average 1-year price target is about $161.82.
• Recent earnings missed expectations: Vail Resorts reported quarterly EPS of $5.87, below the $6.06 consensus, while revenue of $1.08 billion also came in under estimates. Revenue fell 4.7% year over year, and analysts now expect full-year EPS of 4.79.
• Dividend yield is high, but payout looks stretched: The company recently paid a quarterly dividend of $2.22 per share, implying an annualized yield of 6.9%. However, the dividend payout ratio is elevated at 144.86%, which may raise sustainability concerns.

Vail Resorts, Inc. (NYSE:MTN - Get Free Report) has been assigned an average recommendation of "Hold" from the fourteen research firms that are presently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and five have given a buy recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $161.8182.

Several analysts recently commented on MTN shares. Mizuho lowered their target price on Vail Resorts from $202.00 to $200.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 10th. Deutsche Bank Aktiengesellschaft lowered their target price on Vail Resorts from $159.00 to $151.00 and set a "hold" rating on the stock in a research report on Friday, March 6th. Stifel Nicolaus lowered their target price on Vail Resorts from $175.00 to $172.00 and set a "buy" rating on the stock in a research report on Tuesday, March 10th. JPMorgan Chase & Co. lowered their target price on Vail Resorts from $172.00 to $156.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 10th. Finally, Zacks Research cut Vail Resorts from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 28th.

Vail Resorts Trading Up 0.2%

Shares of MTN opened at $127.81 on Monday. The company has a market capitalization of $4.55 billion, a P/E ratio of 20.85, a P/E/G ratio of 10.78 and a beta of 0.70. Vail Resorts has a one year low of $118.51 and a one year high of $175.51. The company has a debt-to-equity ratio of 4.43, a quick ratio of 0.51 and a current ratio of 0.62. The stock has a 50-day moving average price of $128.21 and a 200 day moving average price of $136.26.

Vail Resorts (NYSE:MTN - Get Free Report) last released its earnings results on Monday, March 9th. The company reported $5.87 EPS for the quarter, missing analysts' consensus estimates of $6.06 by ($0.19). Vail Resorts had a return on equity of 29.72% and a net margin of 7.89%.The firm had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same period in the prior year, the business earned $6.56 EPS. The company's quarterly revenue was down 4.7% on a year-over-year basis. Sell-side analysts forecast that Vail Resorts will post 4.79 EPS for the current fiscal year.

Vail Resorts Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Thursday, March 26th were given a dividend of $2.22 per share. The ex-dividend date was Thursday, March 26th. This represents a $8.88 annualized dividend and a dividend yield of 6.9%. Vail Resorts's dividend payout ratio (DPR) is 144.86%.

Insiders Place Their Bets

In related news, CFO Angela A. Korch bought 190 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were acquired at an average cost of $131.85 per share, for a total transaction of $25,051.50. Following the acquisition, the chief financial officer directly owned 5,539 shares of the company's stock, valued at $730,317.15. The trade was a 3.55% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 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 bought at an average price of $131.81 per share, for a total transaction of $4,942,875.00. Following the completion of the acquisition, the chief executive officer directly owned 285,312 shares in the company, valued at approximately $37,606,974.72. The trade was 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

Several hedge funds and other institutional investors have recently modified their holdings of MTN. Segall Bryant & Hamill LLC acquired a new stake in Vail Resorts during the first quarter valued at $969,000. Western Wealth Management LLC acquired a new stake in Vail Resorts during the first quarter valued at $54,000. Arkadios Wealth Advisors boosted its position in Vail Resorts by 23.4% during the first quarter. Arkadios Wealth Advisors now owns 2,361 shares of the company's stock valued at $303,000 after purchasing an additional 447 shares during the last quarter. South Dakota Investment Council boosted its position in Vail Resorts by 66.3% during the first quarter. South Dakota Investment Council now owns 69,433 shares of the company's stock valued at $8,910,000 after purchasing an additional 27,676 shares during the last quarter. Finally, Amundi boosted its position in Vail Resorts by 98.9% during the first quarter. Amundi now owns 3,384 shares of the company's stock valued at $434,000 after purchasing an additional 1,683 shares during the last quarter. Institutional investors and hedge funds own 94.90% of the company's stock.

Vail Resorts Company Profile

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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