Hilton Worldwide Holdings Inc. (NYSE:HLT) Sees Significant Increase in Short Interest

Hilton Worldwide Holdings Inc. (NYSE:HLT) was the target of a significant increase in short interest in the month of November. As of November 15th, there was short interest totalling 5,280,000 shares, an increase of 28.2% from the October 31st total of 4,120,000 shares. Based on an average daily trading volume, of 1,450,000 shares, the days-to-cover ratio is currently 3.6 days. Approximately 2.2% of the shares of the stock are short sold.

Hilton Worldwide Stock Performance

HLT traded down $2.96 during mid-day trading on Monday, reaching $250.48. The stock had a trading volume of 1,264,792 shares, compared to its average volume of 1,544,498. Hilton Worldwide has a 52 week low of $166.92 and a 52 week high of $255.86. The stock has a market capitalization of $61.06 billion, a P/E ratio of 53.75, a P/E/G ratio of 3.19 and a beta of 1.30. The firm’s fifty day simple moving average is $240.26 and its two-hundred day simple moving average is $222.23.

Hilton Worldwide (NYSE:HLT) last issued its earnings results on Wednesday, October 23rd. The company reported $1.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.85 by $0.07. Hilton Worldwide had a negative return on equity of 60.85% and a net margin of 10.70%. The firm had revenue of $2.87 billion for the quarter, compared to analysts’ expectations of $2.90 billion. During the same quarter last year, the business earned $1.67 earnings per share. The company’s revenue was up 7.3% compared to the same quarter last year. As a group, analysts expect that Hilton Worldwide will post 7 EPS for the current fiscal year.

Hilton Worldwide declared that its Board of Directors has initiated a stock buyback plan on Thursday, November 14th that allows the company to repurchase $3.50 billion in shares. This repurchase authorization allows the company to repurchase up to 5.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Hilton Worldwide Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 27th. Stockholders of record on Friday, November 15th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.24%. The ex-dividend date is Friday, November 15th. Hilton Worldwide’s dividend payout ratio is currently 12.88%.

Insider Activity

In other news, insider Laura Fuentes sold 4,919 shares of the stock in a transaction on Friday, September 13th. The stock was sold at an average price of $217.00, for a total transaction of $1,067,423.00. Following the completion of the sale, the insider now owns 15,949 shares in the company, valued at approximately $3,460,933. This represents a 23.57 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Michael W. Duffy sold 14,357 shares of Hilton Worldwide stock in a transaction on Thursday, October 24th. The stock was sold at an average price of $235.73, for a total value of $3,384,375.61. Following the completion of the transaction, the insider now owns 22,833 shares in the company, valued at $5,382,423.09. The trade was a 38.60 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 2.50% of the company’s stock.

Institutional Trading of Hilton Worldwide

Large investors have recently bought and sold shares of the business. Principal Financial Group Inc. boosted its position in Hilton Worldwide by 15.3% during the 3rd quarter. Principal Financial Group Inc. now owns 10,756,416 shares of the company’s stock worth $2,479,354,000 after acquiring an additional 1,429,537 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in Hilton Worldwide by 36.9% during the second quarter. Massachusetts Financial Services Co. MA now owns 4,754,647 shares of the company’s stock worth $1,037,464,000 after purchasing an additional 1,282,676 shares during the last quarter. Jennison Associates LLC increased its stake in Hilton Worldwide by 33.2% in the 3rd quarter. Jennison Associates LLC now owns 3,234,809 shares of the company’s stock valued at $745,624,000 after buying an additional 806,029 shares during the last quarter. Stockbridge Partners LLC lifted its position in Hilton Worldwide by 63.6% during the 3rd quarter. Stockbridge Partners LLC now owns 1,544,399 shares of the company’s stock worth $355,984,000 after buying an additional 600,593 shares in the last quarter. Finally, International Assets Investment Management LLC grew its holdings in shares of Hilton Worldwide by 23,730.1% in the 3rd quarter. International Assets Investment Management LLC now owns 479,223 shares of the company’s stock valued at $1,104,610,000 after acquiring an additional 477,212 shares in the last quarter. 95.90% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Macquarie increased their target price on Hilton Worldwide from $205.00 to $208.00 and gave the company a “neutral” rating in a report on Wednesday, August 7th. Melius downgraded Hilton Worldwide from a “buy” rating to a “hold” rating in a research note on Monday, October 21st. Mizuho raised their target price on Hilton Worldwide from $237.00 to $243.00 and gave the company an “outperform” rating in a report on Thursday, October 24th. Barclays dropped their target price on shares of Hilton Worldwide from $244.00 to $243.00 and set an “overweight” rating on the stock in a report on Thursday, October 24th. Finally, Melius Research restated a “hold” rating on shares of Hilton Worldwide in a research note on Monday, October 21st. Eleven research analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. According to MarketBeat.com, Hilton Worldwide presently has an average rating of “Hold” and an average price target of $228.71.

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.