Hilton Worldwide (NYSE:HLT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Hilton’s shares have slightly outpaced its industry in the last year. The company’s fourth-quarter earnings of 54 cents per share topped the Zacks Consensus Estimate of 44 cents but declined 22.9% year over year. Revenues of $2.28 billion rose 23.9% from the prior-year quarter, beating the consensus mark of $2.26 billion. In the fourth quarter, system-wide comparable revenue per available room (RevPAR) increased 3.8%, driven by growth in occupancy and average daily rate. The company’s loyalty program continues to drive occupancy. Moreover, with the spin-off of a portfolio of hotels and resorts as well as its timeshare business, Hilton has transformed into a capital-light operating business. Earnings estimates for the current quarter and year have also gone up over the last 60 days. Yet, soft group performance in the United States, political unrest in the Middle East and other macroeconomic concerns are pressurizing RevPAR growth.”
HLT has been the topic of a number of other research reports. Royal Bank of Canada upped their target price on Hilton Worldwide to $96.00 and gave the company an “outperform” rating in a research report on Monday, January 29th. Argus upped their target price on Hilton Worldwide from $2.40 to $94.00 and gave the company a “positive” rating in a research report on Wednesday, January 3rd. Raymond James Financial upgraded Hilton Worldwide from an “outperform” rating to a “strong-buy” rating and dropped their target price for the company from $78.00 to $69.00 in a research report on Monday, January 8th. Morgan Stanley reiterated a “buy” rating on shares of Hilton Worldwide in a research report on Friday, December 8th. Finally, Wells Fargo & Co lowered Hilton Worldwide from an “outperform” rating to a “market perform” rating and set a $78.00 target price on the stock. in a research report on Monday, November 6th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $80.61.
Hilton Worldwide (NYSE:HLT) last issued its quarterly earnings results on Wednesday, February 14th. The company reported $0.54 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.10. The business had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.24 billion. Hilton Worldwide had a return on equity of 39.37% and a net margin of 13.77%. The company’s revenue was up 23.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.70 earnings per share. research analysts forecast that Hilton Worldwide will post 2.62 EPS for the current fiscal year.
Hilton Worldwide announced that its board has approved a stock buyback program on Thursday, November 16th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.
Institutional investors have recently added to or reduced their stakes in the business. IFM Investors Pty Ltd purchased a new stake in Hilton Worldwide in the 3rd quarter worth approximately $407,000. Conning Inc. acquired a new position in shares of Hilton Worldwide during the 4th quarter worth approximately $312,000. ACG Wealth acquired a new position in shares of Hilton Worldwide during the 3rd quarter worth approximately $1,184,000. American Century Companies Inc. raised its stake in shares of Hilton Worldwide by 18.7% during the 3rd quarter. American Century Companies Inc. now owns 1,303,882 shares of the company’s stock worth $90,555,000 after buying an additional 205,103 shares during the period. Finally, Capital International Ltd. CA acquired a new position in shares of Hilton Worldwide during the 3rd quarter worth approximately $7,655,000. Institutional investors and hedge funds own 99.29% of the company’s stock.
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About Hilton Worldwide
Hilton Worldwide Holdings Inc is a hospitality company. The Company is engaged in owning, leasing, managing and franchising hotels and resorts. The Company’s segments include ownership, and management and franchise. Its global portfolio of owned and leased properties includes a range of hotels in gateway cities, such as New York City, London, San Francisco, Chicago, Sao Paolo and Tokyo.
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