Traders Buy Large Volume of Call Options on Hilton Worldwide (NYSE:HLT)

Hilton Worldwide Holdings Inc. (NYSE:HLT) was the recipient of unusually large options trading on Thursday. Stock traders acquired 51,117 call options on the company. This represents an increase of 3,723% compared to the typical volume of 1,337 call options.

Hilton Worldwide Trading Down 0.3 %

Shares of HLT stock opened at $269.55 on Friday. Hilton Worldwide has a 1 year low of $186.83 and a 1 year high of $274.18. The firm’s 50 day moving average is $250.31 and its 200-day moving average is $235.50. The firm has a market capitalization of $65.71 billion, a price-to-earnings ratio of 57.84, a PEG ratio of 2.67 and a beta of 1.29.

Hilton Worldwide (NYSE:HLT) last announced its quarterly earnings data on Thursday, February 6th. The company reported $1.76 EPS for the quarter, beating analysts’ consensus estimates of $1.67 by $0.09. Hilton Worldwide had a negative return on equity of 60.85% and a net margin of 10.70%. On average, equities research analysts forecast that Hilton Worldwide will post 7 earnings per share for the current fiscal year.

Hilton Worldwide Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 28th. Shareholders of record on Friday, February 21st will be paid a $0.15 dividend. The ex-dividend date is Friday, February 21st. This represents a $0.60 dividend on an annualized basis and a yield of 0.22%. Hilton Worldwide’s payout ratio is presently 9.76%.

Hilton Worldwide declared that its Board of Directors has initiated a share buyback program on Thursday, November 14th that authorizes the company to buyback $3.50 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 5.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Truist Financial upped their price objective on shares of Hilton Worldwide from $208.00 to $220.00 and gave the stock a “hold” rating in a report on Thursday, October 24th. Wells Fargo & Company boosted their target price on shares of Hilton Worldwide from $232.00 to $240.00 and gave the stock an “equal weight” rating in a research report on Tuesday. Jefferies Financial Group boosted their price objective on shares of Hilton Worldwide from $237.00 to $277.00 and gave the stock a “hold” rating in a report on Thursday, January 2nd. The Goldman Sachs Group upped their price target on Hilton Worldwide from $247.00 to $277.00 and gave the company a “buy” rating in a report on Tuesday, December 10th. Finally, JPMorgan Chase & Co. upped their target price on shares of Hilton Worldwide from $219.00 to $226.00 and gave the company a “neutral” rating in a research note on Friday, December 13th. Twelve investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $244.06.

Insiders Place Their Bets

In other Hilton Worldwide news, insider Christopher J. Nassetta sold 40,653 shares of Hilton Worldwide stock in a transaction that occurred on Friday, February 7th. The shares were sold at an average price of $268.83, for a total transaction of $10,928,745.99. Following the transaction, the insider now directly owns 77,383 shares in the company, valued at approximately $20,802,871.89. The trade was a 34.44 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Michael W. Duffy sold 23,366 shares of the business’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $251.66, for a total transaction of $5,880,287.56. Following the transaction, the insider now directly owns 22,833 shares in the company, valued at $5,746,152.78. The trade was a 50.58 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Hilton Worldwide

Several institutional investors have recently modified their holdings of HLT. Palumbo Wealth Management LLC lifted its holdings in Hilton Worldwide by 2.0% during the fourth quarter. Palumbo Wealth Management LLC now owns 2,134 shares of the company’s stock worth $528,000 after acquiring an additional 41 shares in the last quarter. Signature Estate & Investment Advisors LLC raised its position in shares of Hilton Worldwide by 2.1% during the third quarter. Signature Estate & Investment Advisors LLC now owns 2,029 shares of the company’s stock worth $468,000 after purchasing an additional 42 shares during the period. Concurrent Investment Advisors LLC lifted its holdings in shares of Hilton Worldwide by 1.3% during the 4th quarter. Concurrent Investment Advisors LLC now owns 3,232 shares of the company’s stock valued at $799,000 after purchasing an additional 43 shares in the last quarter. Harbor Capital Advisors Inc. grew its position in shares of Hilton Worldwide by 0.5% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 8,443 shares of the company’s stock valued at $1,946,000 after purchasing an additional 44 shares during the period. Finally, Graypoint LLC raised its holdings in Hilton Worldwide by 2.6% during the 3rd quarter. Graypoint LLC now owns 1,869 shares of the company’s stock worth $431,000 after buying an additional 47 shares during the period. 95.90% of the stock is currently owned by institutional investors and hedge funds.

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.