Hilton Worldwide (NYSE:HLT) Initiates Stock Buyback Program

Hilton Worldwide (NYSE:HLT) declared that its board has authorized a stock repurchase plan on Thursday, November 14th, RTT News reports. The company plans to repurchase $3.50 billion in shares. This repurchase authorization permits the company to purchase up to 5.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Hilton Worldwide Stock Performance

Shares of HLT stock opened at $248.41 on Friday. The firm has a market capitalization of $60.56 billion, a price-to-earnings ratio of 53.31, a price-to-earnings-growth ratio of 3.18 and a beta of 1.30. The company has a 50 day moving average price of $233.57 and a 200 day moving average price of $218.47. Hilton Worldwide has a one year low of $164.93 and a one year high of $255.86.

Hilton Worldwide (NYSE:HLT) last issued its earnings results on Wednesday, October 23rd. The company reported $1.92 earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $2.87 billion for the quarter, compared to analyst estimates of $2.90 billion. During the same period last year, the company posted $1.67 EPS. The business’s quarterly revenue was up 7.3% on a year-over-year basis. As a group, equities analysts forecast that Hilton Worldwide will post 7 EPS for the current fiscal year.

Hilton Worldwide Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Stockholders of record on Friday, November 15th will be issued 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 of this dividend is Friday, November 15th. Hilton Worldwide’s payout ratio is currently 12.88%.

Analyst Ratings Changes

HLT has been the topic of several research reports. The Goldman Sachs Group started coverage on Hilton Worldwide in a report on Wednesday, September 18th. They issued a “buy” rating and a $245.00 target price on the stock. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Hilton Worldwide from $185.00 to $181.00 and set a “hold” rating for the company in a report on Thursday, August 8th. Macquarie upped their price target on shares of Hilton Worldwide from $205.00 to $208.00 and gave the company a “neutral” rating in a report on Wednesday, August 7th. Wells Fargo & Company dropped their price objective on shares of Hilton Worldwide from $237.00 to $232.00 and set an “equal weight” rating for the company in a research note on Thursday, October 24th. Finally, TD Cowen reduced their target price on Hilton Worldwide from $265.00 to $256.00 and set a “buy” rating on the stock in a research note on Thursday, October 24th. 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, the stock has an average rating of “Hold” and an average price target of $228.71.

Insider Buying and Selling

In other news, insider Laura Fuentes sold 4,919 shares of the stock in a transaction dated Friday, September 13th. The stock was sold at an average price of $217.00, for a total value 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 trade represents a 23.57 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michael W. Duffy sold 14,357 shares of the business’s stock in a transaction that occurred 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 transaction, the insider now directly owns 22,833 shares in the company, valued at $5,382,423.09. This trade represents a 38.60 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.50% of the company’s stock.

Hilton Worldwide Company Profile

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.