Hilton Grand Vacations (NYSE:HGV) Shares Gap Down on Disappointing Earnings

Hilton Grand Vacations Inc (NYSE:HGV)’s share price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $29.88, but opened at $28.14. Hilton Grand Vacations shares last traded at $26.60, with a volume of 100,978 shares changing hands.

The company reported $0.43 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.01). The business had revenue of $454.00 million during the quarter, compared to analyst estimates of $454.44 million. Hilton Grand Vacations had a net margin of 15.51% and a return on equity of 56.92%. The company’s revenue for the quarter was down 19.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.10 earnings per share.

A number of research analysts have recently issued reports on HGV shares. JPMorgan Chase & Co. lowered shares of Hilton Grand Vacations from a “neutral” rating to an “underweight” rating and set a $24.00 price target on the stock. in a research note on Friday. Zacks Investment Research upgraded shares of Hilton Grand Vacations from a “sell” rating to a “hold” rating in a research note on Wednesday, July 3rd. TheStreet lowered shares of Hilton Grand Vacations from a “b-” rating to a “c” rating in a research note on Tuesday, May 7th. Nomura reiterated a “neutral” rating on shares of Hilton Grand Vacations in a research note on Thursday. Finally, ValuEngine lowered shares of Hilton Grand Vacations from a “hold” rating to a “sell” rating in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and four have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $36.00.

In related news, insider Barbara L. Hollkamp sold 2,000 shares of the business’s stock in a transaction dated Monday, June 10th. The shares were sold at an average price of $27.76, for a total transaction of $55,520.00. Following the sale, the insider now owns 53,547 shares of the company’s stock, valued at $1,486,464.72. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Leonard Potter acquired 10,000 shares of the firm’s stock in a transaction that occurred on Monday, May 13th. The shares were bought at an average cost of $27.50 per share, for a total transaction of $275,000.00. Following the acquisition, the director now owns 72,348 shares of the company’s stock, valued at approximately $1,989,570. The disclosure for this purchase can be found here. Insiders own 1.05% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in HGV. FMR LLC lifted its holdings in shares of Hilton Grand Vacations by 5.3% in the first quarter. FMR LLC now owns 14,155,214 shares of the company’s stock valued at $436,688,000 after purchasing an additional 715,636 shares in the last quarter. Long Pond Capital LP lifted its holdings in shares of Hilton Grand Vacations by 9.6% in the first quarter. Long Pond Capital LP now owns 5,867,092 shares of the company’s stock valued at $181,000,000 after purchasing an additional 515,057 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Hilton Grand Vacations by 3.7% in the first quarter. Principal Financial Group Inc. now owns 3,495,354 shares of the company’s stock valued at $107,832,000 after purchasing an additional 124,140 shares in the last quarter. TimesSquare Capital Management LLC lifted its holdings in shares of Hilton Grand Vacations by 13.4% in the first quarter. TimesSquare Capital Management LLC now owns 2,080,797 shares of the company’s stock valued at $64,193,000 after purchasing an additional 246,580 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Hilton Grand Vacations in the fourth quarter valued at about $33,159,000.

The firm has a market capitalization of $3.01 billion, a P/E ratio of 8.72, a PEG ratio of 1.36 and a beta of 2.04. The company has a current ratio of 5.12, a quick ratio of 3.77 and a debt-to-equity ratio of 2.78. The firm’s fifty day moving average price is $31.46.

Hilton Grand Vacations Company Profile (NYSE:HGV)

Hilton Grand Vacations Inc, a timeshare company, develops, markets, and operates vacation ownership resorts primarily under the Hilton Grand Vacations brand. The company operates in two segments, Real Estate Sales and Financing, and Resort Operations and Club Management. It sells vacation ownership intervals; manages resorts; operates a points-based vacation club; and finances and services loans provided to consumers for their timeshare purchases.

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