Hilton Grand Vacations Shares Gap Down - What’s Next?

On Friday, Hilton Grand Vacations Inc. (NYSE:HGV) saw its stock price make a significant move before the market even opened. The shares, which wrapped up the previous trading session at $40.56, opened notably lower at $39.72. As trading continued, Hilton Grand Vacations shares were last seen trading at $40.25, with a total volume of 89,328 shares exchanged during the day.

Revised Analyst Ratings

The stock has recently been under the microscope of several financial analysts. Truist Financial has adjusted their price target for Hilton Grand Vacations, reducing it from $52.00 to $51.00 while maintaining a "buy" rating. Additionally, Mizuho also lowered their price target from $57.00 to $55.00, keeping an "outperform" rating on the stock. Barclays provided a more conservative outlook, reaffirming an "equal weight" rating and adjusting the price target down to $41.00 from a previous $44.00. Meanwhile, StockNews.com upgraded their stance on the stock, moving it from a "sell" rating to a "hold" rating. Lastly, The Goldman Sachs Group increased their price target from $33.00 to $37.00, although they issued a "sell" rating. The overall consensus on the stock is currently a "Hold" with an average price target set at $44.29, according to MarketBeat.com.

Performance and Financial Ratios

Hilton Grand Vacations boasts a market capitalization of approximately $3.95 billion. The company has a price-to-earnings (P/E) ratio of 46.07, while its PEG ratio stands at 2.25. The stock has a beta of 1.85, indicating a higher volatility compared to the market. In terms of financial health, Hilton shows a debt-to-equity ratio of 3.32, a current ratio of 4.83, and a quick ratio of 3.08. The stock's 50-day and 200-day moving averages are $39.65 and $39.30, respectively.

In its most recent quarterly earnings report released on November 7th, Hilton Grand Vacations disclosed earnings of $0.67 per share, which fell short of analysts' expectations of $0.70 by $0.03. The company reported a return on equity of 16.44% and a net margin of 2.01%. Additionally, it achieved revenues of $1.31 billion for the quarter, surpassing the consensus estimate of $1.29 billion, and reflecting a year-over-year revenue increase of 28.3%. Analysts forecast an earnings per share of 3.43 for the current fiscal year.

Insider Transactions

Recent transactions by insiders have raised eyebrows as well. On November 21st, Charles R. Jr. Corbin, an insider of the company, sold 49,389 shares at an average price of $41.55, totaling over $2 million. After this transaction, he still holds around 88,532 shares, valued at approximately $3.68 million. In a more significant move, Principal Holdings A. Gp Apollo sold 4 million shares on November 25th at an average price of $42.10, resulting in a total transaction of about $168.4 million. This left them with 26,295,825 shares valued at over $1 billion. It's worth noting that insiders currently hold about 2.30% of the company's stock.

Institutional Activity

Institutional investment trends also show some activity around Hilton Grand Vacations. Several hedge funds have made moves to buy and sell shares of HGV. Notably, Reston Wealth Management LLC acquired a new stake valued at $25,000 in the third quarter. Other firms like nVerses Capital LLC and Blue Trust Inc. have also shown interest, reinforcing institutional ownership at a remarkable 97.23% of the stock.

About Hilton Grand Vacations

Hilton Grand Vacations Inc. specializes in timeshare properties, developing, marketing, selling, managing, and operating resorts under its brand. The company operates through distinct segments: Real Estate Sales and Financing, and Resort Operations and Club Management. The Real Estate Sales and Financing segment focuses on marketing and selling vacation ownership interests (VOIs) while also offering consumer financing for these properties.

Hilton, Investing, Stocks