Hilton Worldwide (NYSE:HLT) Shares Gap Up After Better-Than-Expected Earnings

Hilton Worldwide Holdings Inc. (NYSE:HLT) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $197.04, but opened at $205.56. Hilton Worldwide shares last traded at $208.62, with a volume of 551,934 shares traded.

The company reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.12. The firm had revenue of $2.57 billion during the quarter, compared to analyst estimates of $2.51 billion. Hilton Worldwide had a net margin of 11.41% and a negative return on equity of 92.07%. The firm’s revenue for the quarter was up 12.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.24 earnings per share.

Hilton Worldwide Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, May 17th will be paid a $0.15 dividend. The ex-dividend date is Thursday, May 16th. This represents a $0.60 dividend on an annualized basis and a yield of 0.29%. Hilton Worldwide’s dividend payout ratio is currently 13.04%.

Analysts Set New Price Targets

HLT has been the topic of several analyst reports. Barclays lifted their target price on shares of Hilton Worldwide from $216.00 to $219.00 and gave the stock an “overweight” rating in a research report on Thursday. HSBC raised their target price on Hilton Worldwide from $219.00 to $254.00 and gave the stock a “buy” rating in a research report on Wednesday, April 3rd. Wells Fargo & Company raised their price objective on Hilton Worldwide from $196.00 to $200.00 and gave the stock an “equal weight” rating in a research report on Wednesday, March 20th. Evercore ISI increased their price target on shares of Hilton Worldwide from $200.00 to $210.00 and gave the stock an “in-line” rating in a research report on Wednesday, March 20th. Finally, UBS Group boosted their price objective on shares of Hilton Worldwide from $190.00 to $237.00 and gave the company a “buy” rating in a research report on Wednesday, February 28th. Nine analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, Hilton Worldwide has an average rating of “Moderate Buy” and an average price target of $205.06.

Insider Transactions at Hilton Worldwide

In related news, insider Christopher J. Nassetta sold 21,489 shares of the firm’s stock in a transaction on Thursday, February 8th. The shares were sold at an average price of $195.68, for a total value of $4,204,967.52. Following the transaction, the insider now directly owns 2,536,478 shares in the company, valued at approximately $496,338,015.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hilton Worldwide

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Savoir Faire Capital Management L.P. bought a new position in Hilton Worldwide in the 3rd quarter worth approximately $4,270,000. International Assets Investment Management LLC raised its stake in Hilton Worldwide by 19,454.9% during the 4th quarter. International Assets Investment Management LLC now owns 296,453 shares of the company’s stock valued at $53,981,000 after purchasing an additional 294,937 shares during the last quarter. Jennison Associates LLC boosted its holdings in Hilton Worldwide by 11.5% in the 4th quarter. Jennison Associates LLC now owns 298,024 shares of the company’s stock valued at $54,267,000 after purchasing an additional 30,676 shares during the period. Nordea Investment Management AB grew its position in Hilton Worldwide by 6.3% in the 4th quarter. Nordea Investment Management AB now owns 1,674,212 shares of the company’s stock worth $305,159,000 after purchasing an additional 98,790 shares during the last quarter. Finally, Prime Capital Investment Advisors LLC grew its position in Hilton Worldwide by 4.4% in the 4th quarter. Prime Capital Investment Advisors LLC now owns 16,370 shares of the company’s stock worth $2,981,000 after purchasing an additional 694 shares during the last quarter. 95.90% of the stock is owned by institutional investors and hedge funds.

Hilton Worldwide Trading Down 0.4 %

The firm’s fifty day moving average price is $205.70 and its 200-day moving average price is $184.45. The company has a market cap of $51.26 billion, a P/E ratio of 44.33, a P/E/G ratio of 1.83 and a beta of 1.25.

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.