Hilton Grand Vacations (NYSE:HGV) Shares Gap Down Following Weak Earnings

Hilton Grand Vacations Inc. (NYSE:HGV) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $44.16, but opened at $40.82. Hilton Grand Vacations shares last traded at $41.6850, with a volume of 321,465 shares traded.

The company reported $0.60 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.43). Hilton Grand Vacations had a return on equity of 9.71% and a net margin of 1.14%.The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same period last year, the business posted $0.67 EPS. Hilton Grand Vacations’s revenue was down .5% on a year-over-year basis.

Hilton Grand Vacations declared that its board has approved a stock repurchase program on Wednesday, August 13th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

HGV has been the topic of several research analyst reports. Mizuho lifted their price target on Hilton Grand Vacations from $73.00 to $76.00 and gave the stock an “outperform” rating in a research report on Friday, August 1st. Deutsche Bank Aktiengesellschaft set a $59.00 price target on Hilton Grand Vacations and gave the stock a “buy” rating in a research report on Monday, August 4th. Barclays lifted their target price on Hilton Grand Vacations from $42.00 to $49.00 and gave the company an “equal weight” rating in a research note on Friday, August 1st. Truist Financial lowered their target price on Hilton Grand Vacations from $63.00 to $62.00 and set a “buy” rating on the stock in a research note on Thursday, August 21st. Finally, The Goldman Sachs Group reiterated a “sell” rating and issued a $39.00 target price on shares of Hilton Grand Vacations in a research note on Friday, August 1st. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $54.71.

Insider Buying and Selling at Hilton Grand Vacations

In related news, insider Mark D. Wang sold 46,364 shares of Hilton Grand Vacations stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $47.34, for a total value of $2,194,871.76. Following the sale, the insider directly owned 801,681 shares in the company, valued at $37,951,578.54. The trade was a 5.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 2.30% of the stock is currently owned by company insiders.

Institutional Trading of Hilton Grand Vacations

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC boosted its position in Hilton Grand Vacations by 743.4% during the second quarter. EverSource Wealth Advisors LLC now owns 641 shares of the company’s stock worth $27,000 after purchasing an additional 565 shares in the last quarter. Signaturefd LLC boosted its position in Hilton Grand Vacations by 136.9% during the first quarter. Signaturefd LLC now owns 860 shares of the company’s stock worth $32,000 after purchasing an additional 497 shares in the last quarter. Nomura Asset Management Co. Ltd. lifted its position in shares of Hilton Grand Vacations by 136.8% in the second quarter. Nomura Asset Management Co. Ltd. now owns 900 shares of the company’s stock valued at $37,000 after acquiring an additional 520 shares in the last quarter. State of Wyoming purchased a new stake in shares of Hilton Grand Vacations in the first quarter valued at $48,000. Finally, CWM LLC lifted its position in shares of Hilton Grand Vacations by 69.8% in the second quarter. CWM LLC now owns 1,277 shares of the company’s stock valued at $53,000 after acquiring an additional 525 shares in the last quarter. 97.23% of the stock is currently owned by hedge funds and other institutional investors.

Hilton Grand Vacations Price Performance

The company has a debt-to-equity ratio of 4.31, a current ratio of 4.43 and a quick ratio of 2.77. The company has a 50-day moving average price of $44.63 and a 200-day moving average price of $42.57. The firm has a market capitalization of $3.68 billion, a PE ratio of 75.15, a P/E/G ratio of 3.95 and a beta of 1.65.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc, a timeshare company, develops, markets, sells, manages, and operates the resorts, plans and ancillary reservation services under the Hilton Grand Vacations brand. It operates through Real Estate Sales and Financing, and Resort Operations and Club Management segments. Real Estate Sales and Financing segment market and sells the VOIs, and source VOIs through fee-for-service agreements with third-party developers; and provides consumer financing and services loans.