Hilton Worldwide (NYSE:HLT) to Buyback $3.00 billion in Stock

Hilton Worldwide (NYSE:HLT) declared that its Board of Directors has approved a share buyback plan on Thursday, November 9th, RTT News reports. The company plans to repurchase $3.00 billion in shares. This repurchase authorization permits the company to purchase up to 7.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Hilton Worldwide Trading Up 0.9 %

NYSE:HLT opened at $158.30 on Friday. The stock has a market capitalization of $40.59 billion, a PE ratio of 31.85, a price-to-earnings-growth ratio of 1.61 and a beta of 1.20. The firm’s 50 day moving average is $151.68 and its 200 day moving average is $148.08. Hilton Worldwide has a 12 month low of $123.74 and a 12 month high of $158.78.

Hilton Worldwide (NYSE:HLT) last posted its quarterly earnings results on Wednesday, October 25th. The company reported $1.67 EPS for the quarter, hitting analysts’ consensus estimates of $1.67. Hilton Worldwide had a net margin of 13.13% and a negative return on equity of 115.21%. The company had revenue of $2.67 billion for the quarter, compared to analysts’ expectations of $2.62 billion. During the same quarter in the previous year, the firm posted $1.31 EPS. Hilton Worldwide’s revenue was up 12.9% on a year-over-year basis. Research analysts predict that Hilton Worldwide will post 6.08 earnings per share for the current year.

Hilton Worldwide Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 29th. Investors of record on Friday, November 17th will be paid a $0.15 dividend. The ex-dividend date is Thursday, November 16th. This represents a $0.60 dividend on an annualized basis and a yield of 0.38%. Hilton Worldwide’s dividend payout ratio is 12.07%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on HLT. StockNews.com began coverage on Hilton Worldwide in a research note on Thursday, October 5th. They issued a “hold” rating for the company. Truist Financial raised their target price on Hilton Worldwide from $172.00 to $175.00 and gave the stock a “hold” rating in a research report on Thursday, October 26th. Morgan Stanley increased their price target on Hilton Worldwide from $182.00 to $183.00 and gave the stock an “overweight” rating in a report on Thursday, October 26th. Robert W. Baird increased their price target on Hilton Worldwide from $160.00 to $164.00 in a report on Thursday, July 27th. Finally, TD Cowen raised their target price on Hilton Worldwide from $148.00 to $164.00 and gave the company an “outperform” rating in a research note on Tuesday, September 12th. Eight investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $162.71.

Insider Activity at Hilton Worldwide

In related news, insider Kristin Ann Campbell sold 8,286 shares of Hilton Worldwide stock in a transaction that occurred on Monday, September 11th. The shares were sold at an average price of $154.03, for a total value of $1,276,292.58. Following the completion of the transaction, the insider now directly owns 230,097 shares in the company, valued at approximately $35,441,840.91. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.40% of the stock is owned by company insiders.

About Hilton Worldwide

Hilton Worldwide Holdings Inc, a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and premium economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations.