Hilton Grand Vacations (NYSE:HGV) Shares Gap Down - What's Next?

Hilton Grand Vacations Inc. (NYSE:HGV) experienced a noticeable drop in its stock price as it gapped down at the market's opening on Friday. The stock had previously closed at $40.56 but opened lower at $39.72. By the latest trading session, Hilton Grand Vacations shares were priced at $40.25, with a trading volume of 89,328 shares.

New Analyst Price Targets

Recently, Hilton Grand Vacations has been under the microscope of several analysts who have adjusted their price targets for the stock. Truist Financial revised its price target from $52.00 to $51.00 while maintaining a "buy" rating in a report released on November 26th. Similarly, Mizuho adjusted its price target from $57.00 down to $55.00 and reiterated an "outperform" rating in a report dated November 12th. On the other hand, Barclays affirmed its "equal weight" rating but decreased its price target from $44.00 to $41.00. Meanwhile, StockNews.com upgraded Hilton Grand Vacations from a "sell" rating to a "hold" rating in a report published on November 27th. Goldman Sachs also increased its price objective from $33.00 to $37.00 while assigning a "sell" rating. Overall, the stock has one sell rating, four hold ratings, and three buy ratings, resulting in a consensus rating of "Hold" and an average target price of $44.29 according to MarketBeat.com.

Stock Performance Overview

Hilton Grand Vacations has a market capitalization of approximately $3.95 billion. The stock's price-to-earnings (P/E) ratio stands at 46.07, with a price-to-earnings growth (PEG) ratio of 2.25. Additionally, the company exhibits a beta of 1.85, indicating higher volatility compared to the broader market. Its debt-to-equity ratio is relatively high at 3.32, while the current and quick ratios are 4.83 and 3.08 respectively. Currently, the stock's 50-day and 200-day moving average prices are $39.65 and $39.30.

In terms of financial performance, Hilton Grand Vacations announced its quarterly earnings results on November 7th, reporting earnings per share (EPS) of $0.67. This figure fell short of the consensus estimate of $0.70 by $0.03. The company also showcased a return on equity of 16.44%, alongside a net margin of 2.01%. Revenue for the quarter amounted to $1.31 billion, slightly above the consensus estimate of $1.29 billion, and reflected a year-over-year increase of 28.3%. Analysts are predicting that Hilton Grand Vacations will record an EPS of 3.43 for the current fiscal year.

Insider Activity

Recent insider sales have attracted attention as well. Charles R. Jr. Corbin, an insider, sold 49,389 shares on November 21st at an average price of $41.55, generating total proceeds of approximately $2.05 million. Following this transaction, he retained 88,532 shares valued at $3.68 million. Notably, this sale represented a 35.81% reduction in his ownership stakes. Furthermore, Principal Holdings A. Gp Apollo, a major shareholder, sold 4 million shares on November 25th for an average price of $42.10, amounting to $168.4 million. Following this sale, their remaining stake in the company is 26.3 million shares, valued at about $1.11 billion, which represents a 13.20% decrease in their holdings. Currently, insiders hold approximately 2.30% of the stock.

Institutional Investment Trends

Institutional interest in Hilton Grand Vacations is strong, with recent activity showing new stakes being established. Reston Wealth Management LLC initiated a new position in the third quarter valued at $25,000. Other firms like nVerses Capital LLC and Blue Trust Inc. followed suit, purchasing new stakes valued at $32,000 and $36,000, respectively. Canada Pension Plan Investment Board invested $93,000 during the second quarter, while Ashton Thomas Private Wealth LLC added $120,000. In total, institutional investors own about 97.23% of Hilton Grand Vacations' stock.

Company Overview

Hilton Grand Vacations operates in the timeshare sector, focusing on the development, marketing, and management of resorts under its brand. The company segments its operations into Real Estate Sales and Financing, as well as Resort Operations and Club Management. The Real Estate Sales and Financing arm mainly markets and sells Vacation Ownership Interests (VOIs) and provides financial services to customers in collaboration with third-party developers.

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