Vail Resorts (NYSE:MTN) Shares Gap Down - Here's Why

Key Points

• Vail Resorts shares opened sharply lower, falling from a prior close of $148.36 to $140.07 before recovering to around $147.30.
• Analyst sentiment is mixed but leans neutral: Goldman Sachs initiated coverage with a “sell” rating and a $132 price target, while the consensus rating remains “Hold” with a $149.83 target.
• The company missed quarterly EPS estimates, reporting $8.81 versus $8.97 expected, while revenue rose slightly above forecasts but declined 7% year over year. Vail also maintains a $2.22 quarterly dividend, equivalent to a 6% yield, though its payout ratio exceeds 200%.

Vail Resorts, Inc. (NYSE:MTN - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $148.36, but opened at $140.07. Vail Resorts shares last traded at $147.3040, with a volume of 93,403 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on MTN shares. The Goldman Sachs Group assumed coverage on shares of Vail Resorts in a report on Thursday. They set a "sell" rating and a $132.00 price objective for the company. Weiss Ratings restated a "sell (d+)" rating on shares of Vail Resorts in a report on Tuesday, July 7th. Zacks Research raised shares of Vail Resorts from a "strong sell" rating to a "hold" rating in a research report on Monday, August 3rd. Stifel Nicolaus lowered their price target on Vail Resorts from $172.00 to $167.00 and set a "buy" rating on the stock in a report on Tuesday, June 9th. Finally, Barclays dropped their price target on Vail Resorts from $138.00 to $119.00 and set an "underweight" rating on the stock in a research note on Tuesday, June 9th. Five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $149.83.

Vail Resorts Price Performance

The firm has a 50 day moving average price of $143.59 and a 200 day moving average price of $136.00. The company has a current ratio of 0.91, a quick ratio of 0.79 and a debt-to-equity ratio of 3.22. The stock has a market capitalization of $5.24 billion, a PE ratio of 33.33, a price-to-earnings-growth ratio of 9.74 and a beta of 0.70.

Vail Resorts (NYSE:MTN - Get Free Report) last issued its earnings results on Monday, June 8th. The company reported $8.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.97 by ($0.16). The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.20 billion. Vail Resorts had a net margin of 5.38% and a return on equity of 21.88%. The firm's revenue for the quarter was down 7.0% compared to the same quarter last year. During the same period last year, the business posted $10.54 EPS. Research analysts anticipate that Vail Resorts, Inc. will post 4.32 earnings per share for the current year.

Vail Resorts Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 25th were given a dividend of $2.22 per share. The ex-dividend date of this dividend was Thursday, June 25th. This represents a $8.88 dividend on an annualized basis and a dividend yield of 6.0%. Vail Resorts's dividend payout ratio (DPR) is 201.82%.

Hedge Funds Weigh In On Vail Resorts

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. BOKF NA raised its holdings in shares of 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 purchasing an additional 150 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in Vail Resorts by 815.8% in the second quarter. EverSource Wealth Advisors LLC now owns 174 shares of the company's stock worth $27,000 after buying an additional 155 shares in the last quarter. Golden State Wealth Management LLC raised its stake in Vail Resorts by 83.3% in the fourth quarter. Golden State Wealth Management LLC now owns 220 shares of the company's stock worth $29,000 after buying an additional 100 shares in the last quarter. Danske Bank A S purchased a new stake in Vail Resorts during the third quarter worth $30,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in Vail Resorts by 1,585.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 236 shares of the company's stock valued at $31,000 after acquiring an additional 222 shares in the last quarter. Institutional investors 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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