Vail Resorts (NYSE:MTN) Reaches New 12-Month Low on Analyst Downgrade

Key Points

• Shares of Vail Resorts hit a new 52-week low after Truist cut its price target to $212 (from $217); several other brokers also trimmed targets and the MarketBeat consensus rating is a Hold with a $161.82 consensus price target.
• Insider buying: CEO Robert A. Katz purchased 37,500 shares (~$4.94M) and CFO Angela Korch bought 190 shares on March 16, increasing their holdings despite the stock decline.
• The company posted an earnings and revenue miss (EPS $5.87 vs. $6.06; revenue $1.08B vs. $1.11B), while showing low liquidity (current ratio 0.62), high leverage (debt-to-equity 4.43) and a 7.3% dividend yield with a 144.86% payout ratio, signaling possible balance-sheet strain.

Shares of Vail Resorts, Inc. (NYSE:MTN - Get Free Report) hit a new 52-week low on Thursday after Truist Financial lowered their price target on the stock from $217.00 to $212.00. Truist Financial currently has a buy rating on the stock. Vail Resorts traded as low as $123.52 and last traded at $123.7650, with a volume of 405679 shares changing hands. The stock had previously closed at $130.14.

Several other brokerages have also recently weighed in on MTN. Barclays lowered their price target on shares of Vail Resorts from $140.00 to $138.00 and set an "underweight" rating on the stock in a research report on Tuesday, March 10th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Vail Resorts from $159.00 to $151.00 and set a "hold" rating on the stock in a research report on Friday, March 6th. Mizuho decreased their target price on shares of Vail Resorts from $202.00 to $200.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 10th. UBS Group decreased their target price on shares of Vail Resorts from $169.00 to $139.00 and set a "neutral" rating on the stock in a research report on Friday, April 17th. Finally, Wells Fargo & Company started coverage on shares of Vail Resorts in a research report on Wednesday, March 11th. They issued an "equal weight" rating and a $135.00 target price on the stock. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Vail Resorts presently has a consensus rating of "Hold" and a consensus price target of $161.82.

Insider Activity

In other Vail Resorts news, CFO Angela A. Korch purchased 190 shares of Vail Resorts stock in a transaction dated Monday, March 16th. The shares were acquired at an average price of $131.85 per share, with a total value of $25,051.50. Following the completion of the transaction, the chief financial officer owned 5,539 shares of the company's stock, valued at $730,317.15. This trade represents a 3.55% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Robert A. Katz purchased 37,500 shares of Vail Resorts stock in a transaction dated Monday, March 16th. The shares were acquired at an average cost of $131.81 per share, for a total transaction of $4,942,875.00. Following the transaction, the chief executive officer directly owned 285,312 shares of the company's stock, valued at approximately $37,606,974.72. This represents a 15.13% increase in their position. The disclosure for this purchase is available in the SEC filing. 1.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Vail Resorts

A number of large investors have recently made changes to their positions in MTN. BOKF NA increased its stake in shares of Vail Resorts by 833.3% during the third quarter. BOKF NA now owns 168 shares of the company's stock worth $25,000 after buying an additional 150 shares during the period. NBT Bank N A NY boosted its holdings in shares of 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 buying an additional 144 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of 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 buying an additional 155 shares in the last quarter. Golden State Wealth Management LLC boosted its holdings in shares of 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 buying an additional 100 shares in the last quarter. Finally, Danske Bank A S purchased a new stake in Vail Resorts in the third quarter valued at $30,000. 94.90% of the stock is currently owned by hedge funds and other institutional investors.

Vail Resorts Trading Down 6.0%

The company has a quick ratio of 0.51, a current ratio of 0.62 and a debt-to-equity ratio of 4.43. The stock has a market capitalization of $4.36 billion, a PE ratio of 19.98, a PEG ratio of 9.58 and a beta of 0.79. The business's 50-day moving average is $133.92 and its two-hundred day moving average is $140.19.

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). The firm had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.11 billion. Vail Resorts had a net margin of 7.89% and a return on equity of 29.72%. Vail Resorts's revenue was down 4.7% compared to the same quarter last year. During the same period in the previous year, the company posted $6.56 earnings per share. On average, analysts anticipate that Vail Resorts, Inc. will post 5.09 earnings per share for the current fiscal year.

Vail Resorts Dividend Announcement

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.