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

Hilton Worldwide Holdings Inc. (NYSE:HLT)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 changing hands.

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

Hilton Worldwide Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, May 17th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.29%. The ex-dividend date of this dividend is Thursday, May 16th. Hilton Worldwide’s payout ratio is 13.04%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on HLT. Wells Fargo & Company upped their price target on shares of Hilton Worldwide from $196.00 to $200.00 and gave the stock an “equal weight” rating in a research note on Wednesday, March 20th. Robert W. Baird upped their price target on shares of Hilton Worldwide from $212.00 to $215.00 and gave the stock an “outperform” rating in a research note on Thursday. Barclays upped their price target on shares of Hilton Worldwide from $216.00 to $219.00 and gave the stock an “overweight” rating in a research note on Thursday. Evercore ISI upped their price target on shares of Hilton Worldwide from $200.00 to $210.00 and gave the stock an “in-line” rating in a research note on Wednesday, March 20th. Finally, TD Cowen upped their price target on shares of Hilton Worldwide from $215.00 to $230.00 and gave the stock an “outperform” rating in a research note on Wednesday, March 20th. Nine analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $205.06.

Insider Buying and Selling at Hilton Worldwide

In other Hilton Worldwide news, insider Christopher J. Nassetta sold 21,489 shares of the stock in a transaction on 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 directly owns 2,536,478 shares of the company’s stock, valued at approximately $496,338,015.04. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 2.50% of the company’s stock.

Institutional Trading of Hilton Worldwide

Hedge funds have recently bought and sold shares of the stock. OFI Invest Asset Management bought a new stake in Hilton Worldwide in the 3rd quarter valued at $25,000. EdgeRock Capital LLC acquired a new position in shares of Hilton Worldwide in the 4th quarter valued at $25,000. Activest Wealth Management acquired a new position in shares of Hilton Worldwide in the 4th quarter valued at $26,000. Independence Bank of Kentucky raised its stake in shares of Hilton Worldwide by 66.7% in the 1st 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. Finally, Frazier Financial Advisors LLC acquired a new position in shares of Hilton Worldwide in the 4th quarter valued at $28,000. 95.90% of the stock is owned by institutional investors.

Hilton Worldwide Stock Performance

The company has a market cap of $51.26 billion, a price-to-earnings ratio of 44.33, a PEG ratio of 1.83 and a beta of 1.25. The business’s 50 day moving average price is $205.70 and its 200-day moving average price is $184.45.

About Hilton Worldwide

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.