Marriott Vacations Worldwide (VAC) Cut to Hold at Zacks Investment Research

Marriott Vacations Worldwide (NYSE:VAC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday, Zacks.com reports.

According to Zacks, “Shares of Marriott Vacations have outperformed the industry in the past six months. In first-quarter 2019, the company’s top and bottom lines missed the Zacks Consensus Estimate. However, both the metrics improved year over year. The upside can be attributed to revenue growth across all its segments.  For 2019, the company expects adjusted earnings of $7.33-$7.94 per share. Marriott Vacation has also been focusing on digital expansion and innovation of latest techniques. The company has been remodeling the business framework. It has turned into a more point-based and capital-efficient system, with less dependence on the securitization market. However, increased debt from the ILG acquisitions and high expenses are potential concerns. Owing to a higher debt burden, the company might fail to finance the upcoming projects.”

Several other equities analysts also recently commented on the stock. Credit Suisse Group restated an “outperform” rating and issued a $120.00 price target on shares of Marriott Vacations Worldwide in a research note on Wednesday, March 20th. SunTrust Banks boosted their price target on shares of Marriott Vacations Worldwide to $149.00 and gave the stock a “positive” rating in a research note on Friday, March 1st. Nomura dropped their price target on shares of Marriott Vacations Worldwide from $158.00 to $136.00 and set a “buy” rating for the company in a research note on Thursday, February 28th. Finally, ValuEngine upgraded shares of Marriott Vacations Worldwide from a “strong sell” rating to a “sell” rating in a research note on Thursday, January 24th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and six have issued a buy rating to the stock. Marriott Vacations Worldwide has a consensus rating of “Buy” and an average target price of $129.57.

NYSE:VAC opened at $97.18 on Monday. The firm has a market capitalization of $4.50 billion, a price-to-earnings ratio of 16.53, a price-to-earnings-growth ratio of 1.43 and a beta of 1.66. The company has a debt-to-equity ratio of 1.16, a current ratio of 3.05 and a quick ratio of 2.71. Marriott Vacations Worldwide has a 52 week low of $60.67 and a 52 week high of $126.84.

Marriott Vacations Worldwide (NYSE:VAC) last posted its quarterly earnings results on Tuesday, May 7th. The company reported $1.45 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.69 by ($0.24). The business had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.08 billion. Marriott Vacations Worldwide had a return on equity of 8.05% and a net margin of 0.60%. The business’s revenue was up 85.6% on a year-over-year basis. During the same quarter last year, the firm earned $1.39 EPS. On average, sell-side analysts anticipate that Marriott Vacations Worldwide will post 7.79 earnings per share for the current fiscal year.

In related news, SVP Laurie A. Sullivan sold 2,857 shares of the business’s stock in a transaction on Friday, March 29th. The shares were sold at an average price of $95.87, for a total transaction of $273,900.59. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 2.30% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. Rhumbline Advisers grew its stake in shares of Marriott Vacations Worldwide by 50.4% during the fourth quarter. Rhumbline Advisers now owns 125,884 shares of the company’s stock worth $8,876,000 after purchasing an additional 42,203 shares in the last quarter. Cerebellum GP LLC grew its stake in shares of Marriott Vacations Worldwide by 159.9% during the fourth quarter. Cerebellum GP LLC now owns 3,509 shares of the company’s stock worth $247,000 after purchasing an additional 2,159 shares in the last quarter. Prudential Financial Inc. grew its stake in shares of Marriott Vacations Worldwide by 1,426.5% during the fourth quarter. Prudential Financial Inc. now owns 504,921 shares of the company’s stock worth $35,602,000 after purchasing an additional 471,845 shares in the last quarter. BlackRock Inc. grew its stake in shares of Marriott Vacations Worldwide by 0.8% during the fourth quarter. BlackRock Inc. now owns 4,715,828 shares of the company’s stock worth $332,514,000 after purchasing an additional 39,735 shares in the last quarter. Finally, Stifel Financial Corp grew its stake in shares of Marriott Vacations Worldwide by 5.4% during the fourth quarter. Stifel Financial Corp now owns 5,479 shares of the company’s stock worth $377,000 after purchasing an additional 283 shares in the last quarter. Hedge funds and other institutional investors own 84.51% of the company’s stock.

Marriott Vacations Worldwide Company Profile

Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton, Westin, Hyatt Residence Club brands, and Marriott Vacation Club Pulse brands. The company operates through two segments, Vacation Ownership and Exchange & Third-Party Management.

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