Hilton Worldwide (NYSE:HLT) Shares Gap Up Following Earnings Beat

Hilton Worldwide Holdings Inc. (NYSE:HLT)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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.

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

Hilton Worldwide Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, May 17th will be issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.29%. The ex-dividend date of this dividend is Thursday, May 16th. Hilton Worldwide’s dividend payout ratio (DPR) is presently 13.04%.

Analysts Set New Price Targets

Several research firms have issued reports on HLT. Macquarie restated a “neutral” rating and issued a $192.00 price objective on shares of Hilton Worldwide in a research note on Wednesday. Robert W. Baird upped their price objective on shares of Hilton Worldwide from $212.00 to $215.00 and gave the company an “outperform” rating in a research note on Thursday. UBS Group upped their price objective on shares of Hilton Worldwide from $190.00 to $237.00 and gave the company a “buy” rating in a research note on Wednesday, February 28th. Bank of America upped their price objective on shares of Hilton Worldwide from $215.00 to $225.00 and gave the company a “buy” rating in a research note on Friday, March 15th. Finally, Jefferies Financial Group upped their price objective on shares of Hilton Worldwide from $157.00 to $182.00 and gave the company a “hold” rating in a research note on Tuesday, January 2nd. Nine investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $205.06.

Insider Activity at Hilton Worldwide

In related news, insider Christopher J. Nassetta sold 21,489 shares of the firm’s stock in a transaction dated 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 completion of the sale, the insider now owns 2,536,478 shares in the company, valued at $496,338,015.04. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. 2.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Independence Bank of Kentucky increased its holdings in Hilton Worldwide by 66.7% in the first quarter. Independence Bank of Kentucky now owns 125 shares of the company’s stock valued at $27,000 after buying an additional 50 shares in the last quarter. Eaton Financial Holdings Company LLC increased its holdings in Hilton Worldwide by 0.9% in the fourth quarter. Eaton Financial Holdings Company LLC now owns 5,932 shares of the company’s stock valued at $1,080,000 after buying an additional 52 shares in the last quarter. Raleigh Capital Management Inc. increased its holdings in Hilton Worldwide by 48.7% in the fourth quarter. Raleigh Capital Management Inc. now owns 171 shares of the company’s stock valued at $31,000 after buying an additional 56 shares in the last quarter. Checchi Capital Advisers LLC increased its holdings in Hilton Worldwide by 1.9% in the fourth quarter. Checchi Capital Advisers LLC now owns 3,095 shares of the company’s stock valued at $564,000 after buying an additional 58 shares in the last quarter. Finally, Dorsey & Whitney Trust CO LLC increased its holdings in Hilton Worldwide by 2.4% in the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 2,681 shares of the company’s stock valued at $488,000 after buying an additional 63 shares in the last quarter. 95.90% of the stock is owned by hedge funds and other institutional investors.

Hilton Worldwide Stock Down 0.4 %

The company has a market capitalization of $51.26 billion, a PE ratio of 44.33, a PEG ratio of 1.83 and a beta of 1.25. The stock’s fifty day simple moving average is $205.70 and its 200-day simple moving average is $184.45.

Hilton Worldwide Company Profile

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.