Marriott Vacations Worldwide (NYSE: VAC) received a significant rating change from Wells Fargo & Company, which upgraded its outlook to a strong sell in a report released to investors on Monday. This shift comes as a wave of analysts reassess their positions on the stock, reflecting a broader concern about the company’s performance and market trends.
Analysts have been vocal about their revised targets for Marriott Vacations Worldwide. Truist Financial cut its price objective from $127.00 to $81.00, maintaining a “buy” rating as of November 14, 2023. Similarly, Morgan Stanley set a price target at $70.00 in its report dated October 22, 2023. In a more pessimistic view, Weiss Ratings downgraded the stock from a “hold (c-)” to a “sell (d+)” on November 13, 2023. Citizens Jmp also lowered its price objective from $115.00 to $60.00, while Stifel Nicolaus established a target of $83.00 on November 6, 2023. Currently, four analysts rate the stock as a buy, one as a hold, and four as a sell. According to MarketBeat.com, the average rating remains a “hold” with an average price target of $63.38.
In its latest earnings report released on November 5, 2023, Marriott Vacations Worldwide posted earnings per share (EPS) of $1.69, slightly exceeding the consensus estimate of $1.64. Despite this positive news, the company’s revenue fell to $1.26 billion, underperforming against the estimated $1.31 billion. The results marked a 3.2% decline in revenue compared to the same quarter the previous year, with the net margin reported at 3.44% and a return on equity of 11.44%.
Looking ahead, Marriott Vacations Worldwide has issued guidance for fiscal year 2025, expecting an EPS range of $6.700 to $7.100. Analysts forecast an average EPS of $6.23 for the current fiscal year.
Dividend Announcement and Insider Trading
In addition to its earnings report, Marriott Vacations Worldwide declared a quarterly dividend of $0.79, which was paid to shareholders on October 1, 2023. This dividend represents an annualized figure of $3.16 and a yield of 6.7%. As of the last report, the company’s dividend payout ratio stands at 70.85%.
Insider trading activity has also been noteworthy. Director Christian Asmar purchased 84,000 shares at an average price of $47.44 on November 19, 2023, totaling approximately $3.98 million. After this transaction, Asmar’s ownership in the company increased by 2.08%, bringing his total holdings to more than 4.13 million shares, valued at around $195.94 million. Another director, Lizanne Galbreath, acquired 5,500 shares on November 18, 2023, at an average cost of $46.51 per share, representing a 27.21% increase in her position.
Institutional Investor Activity
Recent changes in institutional ownership reflect a strategic realignment among major shareholders. For instance, Envestnet Asset Management increased its stake by 8.0% during the first quarter, now owning 5,993 shares worth approximately $385,000. Allianz Asset Management more than doubled its holdings, acquiring an additional 39,522 shares to reach a total of 75,676 shares valued at about $4.86 million. Other hedge funds also made moves, with firms like Y Intercept Hong Kong Ltd and Neo Ivy Capital Management purchasing new stakes in the company.
Currently, institutional investors hold a substantial 89.52% of Marriott Vacations Worldwide’s stock, indicating strong confidence among large shareholders, despite recent analyst downgrades.
Marriott Vacations Worldwide operates primarily in the vacation ownership sector, managing and selling vacation ownership products and related services both domestically and internationally. As market conditions evolve, the company faces a complex landscape that will require keen strategic decisions moving forward.
