Wyndham Hotels & Resorts Inc. (NYSE: WH) stock fell -4.12% on Friday to $63.09 against a previous-day closing price of $65.80. With 1.19 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.79 million shares. During the session, the Lodging company that operates in wider Consumer Cyclical sector, reached to the highest price of $65.95 whereas the lowest price it dropped to was $63.00. The 52-week range on WH shows that it touched its highest point at $93.86 and its lowest point at $62.89 during that stretch. It currently has a 1-year price target of $88.21. With its current market cap of 5.96 billion, WH has annualized dividend of $1.28 while the current yield stands at 2.03%. Beta for the stock currently stands at 1.47.
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 WH was down-trending over the past week, with a drop of -6.24%, but this was down by -7.84% over a month. Three-month performance dropped to -2.79% while six-month performance fell -26.06%. The stock lost -12.19% in the past year, while it has lost -29.63% so far this year. A look at the trailing 12-month EPS for WH yields 3.75 with Next year EPS estimates of 3.79. For the next quarter, that number is 1.04. This implies an EPS growth rate of 283.90% for this year and 4.58% for next year.
Float and Shares Shorts:
At present, 91.60 million WH shares are outstanding with a float of 88.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.13 million, which was 2.31% higher than short shares on Jun 14, 2022. In addition to Mr. Geoffrey A. Ballotti as the firm’s Pres, CEO & Director, Ms. Michele Allen serves as its Chief Financial Officer.
Through their ownership of 95.44% of WH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.43% of WH, in contrast to 42.25% held by mutual funds. Shares owned by individuals account for 2.37%. As the largest shareholder in WH with 9.11% of the stake, The Vanguard Group, Inc. holds 8,229,881 shares worth 8,229,881. A second-largest stockholder of WH, BlackRock Fund Advisors, holds 7,051,033 shares, controlling over 7.81% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in WH, holding 6,525,414 shares or 7.22% stake. With a 3.03% stake in WH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,734,574 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.99% of WH stock, is the second-largest Mutual Fund holder. It holds 2,703,329 shares valued at 176.64 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in WH, owning 2,331,845 shares worth 152.36 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WH since 9 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 WH analysts setting a high price target of $100.00 and a low target of $77.00, the average target price over the next 12 months is $86.31. Based on these targets, WH could surge 58.5% to reach the target high and rise by 22.05% to reach the target low. Reaching the average price target will result in a growth of 36.8% 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. WH will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $3.68 being high and $3.59 being low. For WH, this leads to a yearly average estimate of $3.63. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wyndham Hotels & Resorts Inc. surprised analysts by $0.13 when it reported $1.07 EPS against a consensus estimate of $0.94. The surprise factor in the prior quarter was $0.31. Based on analyst estimates, the high estimate for the next quarter is $1.13 and the low estimate is $0.98. The average estimate for the next quarter is thus $1.03.
Summary of Insider Activity:
Insiders traded WH stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 4,806 shares were bought while 0 shares were sold. The number of buy transactions has increased to 84 while that of sell transactions has risen to 24 over the past year. The total number of shares bought during that period was 341,848 while 135,249 shares were sold.