Hilton Worldwide Holdings Inc. (NYSE: HLT) stock fell -5.35% on Friday to $124.63 against a previous-day closing price of $131.68. With 2.31 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.94 million shares. During the session, the Lodging company that operates in wider Consumer Cyclical sector, reached to the highest price of $131.60 whereas the lowest price it dropped to was $124.63. The 52-week range on HLT shows that it touched its highest point at $167.99 and its lowest point at $108.41 during that stretch. It currently has a 1-year price target of $145.75. With its current market cap of 35.35 billion, HLT has annualized dividend of $0.60 while the current yield stands at 0.48%. Beta for the stock currently stands at 1.23.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HLT was down-trending over the past week, with a drop of -7.57%, but this was down by -5.28% over a month. Three-month performance surged to 11.26% while six-month performance fell -17.69%. The stock lost -2.50% in the past year, while it has lost -20.10% so far this year. A look at the trailing 12-month EPS for HLT yields 3.44 with Next year EPS estimates of 5.64. For the next quarter, that number is 1.24. This implies an EPS growth rate of 156.50% for this year and 28.13% for next year. EPS is expected to grow by 47.09% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 75.30%.
Float and Shares Shorts:
At present, 278.00 million HLT shares are outstanding with a float of 269.46 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.86 million, which was 2.11% higher than short shares on Jun 14, 2022. In addition to Mr. Christopher J. Nassetta as the firm’s Pres, CEO & Director, Mr. Kevin J. Jacobs serves as its CFO & Pres of Global Devel.
Through their ownership of 102.12% of HLT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.41% of HLT, in contrast to 34.56% held by mutual funds. Shares owned by individuals account for 14.49%. As the largest shareholder in HLT with 9.03% of the stake, The Vanguard Group, Inc. holds 24,759,921 shares worth 24,759,921. A second-largest stockholder of HLT, Capital Research & Management Co, holds 13,851,057 shares, controlling over 5.05% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in HLT, holding 13,527,289 shares or 4.93% stake. With a 4.16% stake in HLT, the Pershing Square Holdings Ltd. is the largest stakeholder. A total of 11,407,293 shares are owned by the mutual fund manager. The American Funds AMCAP Fund, which owns about 3.17% of HLT stock, is the second-largest Mutual Fund holder. It holds 8,691,865 shares valued at 1.11 billion. Vanguard Total Stock Market Index holds 3.00% of the stake in HLT, owning 8,239,216 shares worth 1.05 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HLT since 19 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HLT analysts setting a high price target of $160.00 and a low target of $120.00, the average target price over the next 12 months is $144.24. Based on these targets, HLT could surge 28.38% to reach the target high and fall by -3.71% to reach the target low. Reaching the average price target will result in a growth of 15.73% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HLT will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $4.69 being high and $4.21 being low. For HLT, this leads to a yearly average estimate of $4.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Hilton Worldwide Holdings Inc. surprised analysts by $0.24 when it reported $1.29 EPS against a consensus estimate of $1.05. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $1.32 and the low estimate is $1.10. The average estimate for the next quarter is thus $1.23.
Summary of Insider Activity:
Insiders traded HLT stock several times over the past three months with 8 Buys and 1 Sells. In these transactions, 115 shares were bought while 3,000 shares were sold. The number of buy transactions has increased to 42 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 500,049 while 436,973 shares were sold.