Hilton Worldwide (NYSE:HLT) Shares Gap Up on Better-Than-Expected Earnings

Hilton Worldwide Holdings Inc. (NYSE:HLT)’s stock 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, topping the consensus estimate of $1.41 by $0.12. Hilton Worldwide had a negative return on equity of 92.07% and a net margin of 11.41%. The firm had revenue of $2.57 billion for the quarter, compared to analyst estimates of $2.51 billion. During the same quarter in the previous year, the firm earned $1.24 EPS. The business’s quarterly revenue was up 12.2% on a year-over-year basis.

Hilton Worldwide Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, May 17th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.29%. The ex-dividend date is Thursday, May 16th. Hilton Worldwide’s dividend payout ratio (DPR) is presently 13.04%.

Wall Street Analyst Weigh In

HLT has been the subject of several recent analyst reports. Robert W. Baird raised their target price on shares of Hilton Worldwide from $212.00 to $215.00 and gave the company an “outperform” rating in a research note on Thursday. UBS Group lifted their target price on Hilton Worldwide from $190.00 to $237.00 and gave the stock a “buy” rating in a research note on Wednesday, February 28th. Jefferies Financial Group increased their price target on Hilton Worldwide from $157.00 to $182.00 and gave the company a “hold” rating in a research note on Tuesday, January 2nd. Evercore ISI lifted their price objective on shares of Hilton Worldwide from $200.00 to $210.00 and gave the stock an “in-line” rating in a research report on Wednesday, March 20th. Finally, Bank of America upped their price objective on shares of Hilton Worldwide from $215.00 to $225.00 and gave the company a “buy” rating in a report on Friday, March 15th. Nine equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $205.06.

Insider Activity

In related news, insider Christopher J. Nassetta sold 21,489 shares of the stock in a transaction that occurred on Thursday, February 8th. The stock was sold at an average price of $195.68, for a total transaction of $4,204,967.52. Following the sale, the insider now owns 2,536,478 shares of the company’s stock, valued at $496,338,015.04. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Hilton Worldwide

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. OFI Invest Asset Management acquired a new stake in Hilton Worldwide in the third quarter valued at approximately $25,000. EdgeRock Capital LLC bought a new position in Hilton Worldwide during the 4th quarter worth $25,000. Activest Wealth Management acquired a new stake in shares of Hilton Worldwide in the fourth quarter valued at about $26,000. Independence Bank of Kentucky raised its position in shares of Hilton Worldwide by 66.7% during the first quarter. Independence Bank of Kentucky now owns 125 shares of the company’s stock worth $27,000 after acquiring an additional 50 shares during the last quarter. Finally, Frazier Financial Advisors LLC bought a new stake in Hilton Worldwide in the fourth quarter valued at approximately $28,000. 95.90% of the stock is currently owned by institutional investors.

Hilton Worldwide Stock Performance

The firm’s fifty day simple moving average is $205.70 and its 200-day simple moving average is $184.45. The stock has a market cap of $51.26 billion, a P/E ratio of 44.33, a price-to-earnings-growth ratio of 1.83 and a beta of 1.25.

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.