Stock Traders Buy High Volume of Call Options on Hilton Worldwide (NYSE:HLT)

Hilton Worldwide Holdings Inc. (NYSE:HLT) was the target of some unusual options trading on Tuesday. Traders purchased 41,800 call options on the company. This represents an increase of approximately 2,240% compared to the average daily volume of 1,786 call options.

Hilton Worldwide Stock Performance

HLT stock opened at $209.41 on Thursday. The stock’s fifty day moving average is $238.64 and its two-hundred day moving average is $243.65. The stock has a market capitalization of $50.18 billion, a price-to-earnings ratio of 34.05, a PEG ratio of 2.86 and a beta of 1.19. Hilton Worldwide has a 1 year low of $193.86 and a 1 year high of $275.22.

Hilton Worldwide (NYSE:HLT) last posted its earnings results on Thursday, February 6th. The company reported $1.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.67 by $0.09. Hilton Worldwide had a net margin of 13.74% and a negative return on equity of 54.47%. As a group, analysts predict that Hilton Worldwide will post 7.89 EPS for the current fiscal year.

Hilton Worldwide Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 28th. Shareholders of record on Friday, February 21st were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.29%. The ex-dividend date was Friday, February 21st. Hilton Worldwide’s payout ratio is currently 9.76%.

Insider Activity

In related news, insider Christopher J. Nassetta sold 40,653 shares of the firm’s stock in a transaction on Friday, February 7th. The shares were sold at an average price of $268.83, for a total transaction of $10,928,745.99. Following the completion of the sale, the insider now directly owns 77,383 shares of the company’s stock, valued at approximately $20,802,871.89. This trade represents a 34.44 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of HLT. Norges Bank acquired a new stake in Hilton Worldwide in the fourth quarter worth about $694,787,000. Principal Financial Group Inc. raised its position in shares of Hilton Worldwide by 15.3% during the 3rd quarter. Principal Financial Group Inc. now owns 10,756,416 shares of the company’s stock worth $2,479,354,000 after buying an additional 1,429,537 shares in the last quarter. GAMMA Investing LLC lifted its stake in shares of Hilton Worldwide by 23,543.6% in the 1st quarter. GAMMA Investing LLC now owns 1,053,557 shares of the company’s stock worth $2,397,370,000 after acquiring an additional 1,049,101 shares during the period. JPMorgan Chase & Co. raised its holdings in Hilton Worldwide by 13.2% during the fourth quarter. JPMorgan Chase & Co. now owns 7,898,986 shares of the company’s stock worth $1,952,314,000 after purchasing an additional 919,424 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Hilton Worldwide by 26.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,265,087 shares of the company’s stock valued at $806,999,000 after purchasing an additional 685,023 shares during the period. Institutional investors own 95.90% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on HLT. Raymond James lifted their target price on Hilton Worldwide from $250.00 to $290.00 and gave the stock an “outperform” rating in a research report on Monday, February 10th. Susquehanna upped their target price on Hilton Worldwide from $247.00 to $250.00 and gave the company a “neutral” rating in a research report on Tuesday, February 25th. Mizuho reissued a “neutral” rating and set a $263.00 price target (up previously from $243.00) on shares of Hilton Worldwide in a research report on Wednesday, February 5th. Jefferies Financial Group cut their price target on shares of Hilton Worldwide from $277.00 to $228.00 and set a “hold” rating on the stock in a report on Wednesday, April 9th. Finally, Morgan Stanley boosted their target price on shares of Hilton Worldwide from $265.00 to $274.00 and gave the stock an “overweight” rating in a research report on Tuesday, March 4th. Twelve research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $248.88.

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 economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations.