Hilton Grand Vacations (NYSE:HGV) Stock Price Down 12.6% After Earnings Miss

Hilton Grand Vacations Inc. (NYSE:HGV) traded down 12.6% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $45.11 and last traded at $44.9580. 213,053 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 936,936 shares. The stock had previously closed at $51.42.

The company reported $0.89 earnings per share for the quarter, missing analysts’ consensus estimates of $0.97 by ($0.08). The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.38 billion. Hilton Grand Vacations had a net margin of 3.16% and a return on equity of 17.62%. Hilton Grand Vacations’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.54 EPS.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on HGV. Weiss Ratings reissued a “hold (c)” rating on shares of Hilton Grand Vacations in a report on Friday, May 29th. Wall Street Zen lowered Hilton Grand Vacations from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Barclays upped their price target on shares of Hilton Grand Vacations from $48.00 to $51.00 and gave the company an “equal weight” rating in a research report on Friday, May 1st. Zacks Research downgraded Hilton Grand Vacations from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 9th. Finally, Wells Fargo & Company decreased their price objective on Hilton Grand Vacations from $49.00 to $47.00 and set an “equal weight” rating for the company in a research report on Thursday, April 16th. Four research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Hilton Grand Vacations has an average rating of “Hold” and a consensus price target of $57.22.

Insiders Place Their Bets

In other Hilton Grand Vacations news, insider Charles R. Jr. Corbin sold 32,907 shares of the business’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $47.66, for a total value of $1,568,347.62. Following the completion of the sale, the insider owned 68,615 shares of the company’s stock, valued at $3,270,190.90. The trade was a 32.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark D. Wang sold 190,813 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $51.93, for a total value of $9,908,919.09. Following the completion of the sale, the insider owned 904,241 shares of the company’s stock, valued at approximately $46,957,235.13. This trade represents a 17.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 229,315 shares of company stock valued at $11,738,497 over the last three months. 3.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in HGV. Handelsbanken Fonder AB lifted its position in shares of Hilton Grand Vacations by 4.7% in the 2nd quarter. Handelsbanken Fonder AB now owns 22,209 shares of the company’s stock worth $1,163,000 after acquiring an additional 1,000 shares during the period. Hennion & Walsh Asset Management Inc. increased its position in shares of Hilton Grand Vacations by 28.2% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 12,625 shares of the company’s stock valued at $661,000 after purchasing an additional 2,775 shares during the period. Bank of America Corp DE raised its stake in shares of Hilton Grand Vacations by 411.4% in the first quarter. Bank of America Corp DE now owns 566,855 shares of the company’s stock valued at $22,175,000 after purchasing an additional 456,008 shares in the last quarter. Amundi raised its stake in shares of Hilton Grand Vacations by 214.2% in the first quarter. Amundi now owns 20,490 shares of the company’s stock valued at $802,000 after purchasing an additional 13,969 shares in the last quarter. Finally, California State Teachers Retirement System lifted its position in Hilton Grand Vacations by 20.6% in the first quarter. California State Teachers Retirement System now owns 69,769 shares of the company’s stock worth $2,729,000 after purchasing an additional 11,932 shares during the period. Institutional investors and hedge funds own 97.23% of the company’s stock.

Hilton Grand Vacations Stock Performance

The company has a quick ratio of 2.64, a current ratio of 4.33 and a debt-to-equity ratio of 5.41. The firm has a 50-day moving average of $50.93 and a 200 day moving average of $47.15. The stock has a market capitalization of $3.57 billion, a P/E ratio of 24.06, a PEG ratio of 0.51 and a beta of 1.51.

About Hilton Grand Vacations

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.