Vail Resorts, Inc. (NYSE:MTN) Short Interest Up 18.6% in March

Key Points

• Short interest jumped 18.6% in March to 5,880,976 shares (about 16.7% of shares sold short) with a short-interest ratio of 5.6 days, indicating rising bearish bets on MTN.
• CEO insider buying contrasts the short squeeze thesis — CEO Robert A. Katz bought 37,500 shares (~$4.94M) on March 16, increasing his stake by 15.13%, and the CFO also made a smaller purchase.
• Mixed fundamentals: earnings miss but a high dividend — Vail reported EPS of $5.87 versus a $6.06 estimate and revenue down 4.7% y/y, yet it pays a $2.22 quarterly dividend (6.7% yield) with a 144.86% payout ratio.

Vail Resorts, Inc. (NYSE:MTN - Get Free Report) was the recipient of a significant increase in short interest during the month of March. As of March 31st, there was short interest totaling 5,880,976 shares, an increase of 18.6% from the March 15th total of 4,957,245 shares. Based on an average daily trading volume, of 1,042,455 shares, the short-interest ratio is presently 5.6 days. Currently, 16.7% of the company's shares are sold short.

Insider Transactions at Vail Resorts

In related news, CEO Robert A. Katz bought 37,500 shares of Vail Resorts stock in a transaction on Monday, March 16th. The shares were purchased 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 owned 285,312 shares in the company, valued at approximately $37,606,974.72. This represents a 15.13% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Angela A. Korch bought 190 shares of Vail Resorts stock in a transaction on Monday, March 16th. The shares were bought at an average price of $131.85 per share, for a total transaction of $25,051.50. Following the acquisition, the chief financial officer owned 5,539 shares of the company's stock, valued at approximately $730,317.15. The trade was a 3.55% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Vail Resorts

Institutional investors have recently bought and sold shares of the company. BOKF NA lifted its stake in Vail Resorts by 833.3% in the 3rd quarter. BOKF NA now owns 168 shares of the company's stock valued at $25,000 after acquiring an additional 150 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Vail Resorts by 815.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 174 shares of the company's stock valued at $27,000 after acquiring an additional 155 shares in the last quarter. NBT Bank N A NY lifted its stake in Vail Resorts by 450.0% in the 3rd quarter. NBT Bank N A NY now owns 176 shares of the company's stock valued at $26,000 after acquiring an additional 144 shares in the last quarter. Danske Bank A S bought a new stake in Vail Resorts in the 3rd quarter valued at approximately $30,000. Finally, Golden State Wealth Management LLC lifted its stake in Vail Resorts by 83.3% in the 4th quarter. Golden State Wealth Management LLC now owns 220 shares of the company's stock valued at $29,000 after acquiring an additional 100 shares in the last quarter. Institutional investors own 94.90% of the company's stock.

Vail Resorts Stock Up 2.8%

Shares of NYSE:MTN traded up $3.63 during trading on Friday, hitting $132.94. 567,798 shares of the company's stock traded hands, compared to its average volume of 726,741. Vail Resorts has a 52 week low of $123.82 and a 52 week 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 company has a market cap of $4.74 billion, a price-to-earnings ratio of 21.69, a price-to-earnings-growth ratio of 9.34 and a beta of 0.79. The company has a 50-day moving average price of $134.49 and a 200-day moving average price of $140.74.

Vail Resorts (NYSE:MTN - Get Free Report) last released 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 net margin of 7.89% and a return on equity of 29.72%. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter last year, the firm earned $6.56 EPS. The company's revenue for the quarter was down 4.7% on a year-over-year basis. As a group, research analysts forecast that Vail Resorts will post 7.62 EPS for the current fiscal year.

Vail Resorts Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Thursday, March 26th were paid a $2.22 dividend. The ex-dividend date was Thursday, March 26th. This represents a $8.88 annualized dividend and a yield of 6.7%. Vail Resorts's payout ratio is presently 144.86%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. UBS Group reduced their target price on Vail Resorts from $169.00 to $139.00 and set a "neutral" rating on the stock in a report on Friday. JPMorgan Chase & Co. cut their price objective on Vail Resorts from $172.00 to $156.00 and set a "neutral" rating on the stock in a report on Tuesday, March 10th. Jefferies Financial Group upgraded Vail Resorts from a "hold" rating to a "buy" rating and lifted their price objective for the company from $159.00 to $165.00 in a report on Tuesday, January 13th. Wells Fargo & Company initiated coverage on Vail Resorts in a report on Wednesday, March 11th. They set an "equal weight" rating and a $135.00 price objective on the stock. Finally, Morgan Stanley cut their price objective on Vail Resorts from $151.00 to $147.00 and set an "equal weight" rating on the stock in a report on Thursday, March 12th. Five equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $162.27.

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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