Zacks Research Downgrades Hilton Grand Vacations (NYSE:HGV) to Strong Sell

Key Points

• Zacks Research downgraded Hilton Grand Vacations (HGV) from a "hold" rating to a "strong sell" in a research note released Tuesday.
• HGV missed quarterly estimates, reporting $0.88 EPS versus $1.05 expected and $1.33B in revenue versus $1.38B expected, though revenue was up 3.8% year-over-year.
• Analyst sentiment is mixed: the consensus is a "Hold" with an average price target of $51.78 (four Buys, five Holds, two Sells), while the stock trades near $45 and the company has a high debt-to-equity ratio of 5.04.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other equities analysts also recently issued reports about the stock. Morgan Stanley reissued an "equal weight" rating and issued a $49.00 price target on shares of Hilton Grand Vacations in a research note on Friday, January 16th. Barclays cut their price objective on shares of Hilton Grand Vacations from $49.00 to $48.00 and set an "equal weight" rating for the company in a report on Monday. Truist Financial lowered their target price on Hilton Grand Vacations from $62.00 to $59.00 and set a "buy" rating on the stock in a report on Friday, November 14th. Mizuho dropped their price target on Hilton Grand Vacations from $73.00 to $69.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. Finally, Jefferies Financial Group increased their price target on Hilton Grand Vacations from $46.00 to $50.00 and gave the company a "hold" rating in a report on Monday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Hilton Grand Vacations has a consensus rating of "Hold" and an average price target of $51.78.

Hilton Grand Vacations Price Performance

Shares of NYSE:HGV traded up $0.37 during trading on Tuesday, reaching $45.01. The stock had a trading volume of 13,455 shares, compared to its average volume of 796,245. The company has a debt-to-equity ratio of 5.04, a quick ratio of 3.17 and a current ratio of 5.20. The business has a fifty day moving average price of $46.22 and a 200-day moving average price of $44.37. The stock has a market cap of $3.66 billion, a PE ratio of 49.46, a PEG ratio of 1.04 and a beta of 1.43. Hilton Grand Vacations has a 1-year low of $30.59 and a 1-year high of $52.08.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.88 EPS for the quarter, missing the consensus estimate of $1.05 by ($0.17). Hilton Grand Vacations had a net margin of 1.60% and a return on equity of 11.90%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the prior year, the company posted $0.49 earnings per share. The firm's revenue for the quarter was up 3.8% compared to the same quarter last year. On average, equities analysts forecast that Hilton Grand Vacations will post 3.39 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Hilton Grand Vacations

Several institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC acquired a new stake in shares of Hilton Grand Vacations during the first quarter worth about $1,541,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Hilton Grand Vacations by 1.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 41,304 shares of the company's stock worth $1,545,000 after buying an additional 615 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Hilton Grand Vacations by 2.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,370 shares of the company's stock worth $6,748,000 after buying an additional 3,705 shares in the last quarter. Intech Investment Management LLC boosted its position in Hilton Grand Vacations by 24.5% in the 1st quarter. Intech Investment Management LLC now owns 43,541 shares of the company's stock valued at $1,629,000 after buying an additional 8,567 shares during the period. Finally, Campbell & CO Investment Adviser LLC purchased a new position in Hilton Grand Vacations in the 2nd quarter valued at approximately $612,000. 97.23% of the stock is owned by institutional investors and hedge funds.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc is a leading developer and marketer of premium vacation ownership resorts. The company specializes in selling timeshare interests in vacation properties under the Hilton Grand Vacations brand, enabling members to purchase deeded real estate interests and utilize a points-based system for booking stays. Alongside new sales, the company provides ongoing management services for its portfolio of resorts, ensuring high standards of guest services, resort maintenance, and member engagement through its proprietary technology platform.

In addition to vacation ownership sales, Hilton Grand Vacations offers a comprehensive suite of membership benefits.

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