Barclays Increases Price Target for Hilton Worldwide to $268.00

Hilton Worldwide (NYSE:HLT) has seen an increase in its price target from $243.00 to $268.00 by analysts at Barclays, as reported on Friday. The brokerage has rated the stock as "overweight," suggesting it has positive expectations for Hilton's performance. This new target indicates a potential upside of 5.57% from the stock's previous closing price.

A range of other brokerages have also provided updates regarding Hilton Worldwide's stock. Mizuho adjusted their price target from $237.00 to $243.00 on Thursday, October 24th, while maintaining an "outperform" rating. Truist Financial also increased their price objective, moving from $208.00 to $220.00 and giving the stock a "hold" rating. Furthermore, Bank of America raised its target from $230.00 to $265.00 and recommended the stock as a "buy" in a note earlier in the month. Melius Research had reaffirmed a "hold" rating on October 21st, but also revised its rating from "buy" to "hold" on the same day. Currently, 11 analysts have assigned a hold rating to Hilton, while eight have issued buy ratings, resulting in an average rating of "Hold" and a consensus price target of $232.65.

Recent Stock Performance

On Friday, Hilton Worldwide shares traded down by $2.03, closing at $253.87. The total trading volume was 152,829 shares, compared to an average volume of 1,534,288 shares. The stock has shown a 50-day moving average price of $244.57 and a 200-day moving average price of $225.09. Over the past year, the stock reached a low of $175.80 and a high of $259.01, with the company holding a market capitalization of $61.89 billion. Hilton has a PE ratio of 54.48 and a PEG ratio of 3.23, showing a beta of 1.30, indicating higher volatility in relation to the market.

Earnings Report Overview

Pursuing its financial progress, Hilton Worldwide reported earnings on Wednesday, October 23rd, revealing an EPS of $1.92 for the quarter, which surpassed analysts' expectations of $1.85 by $0.07. The company experienced a net margin of 10.70% and reported revenues of $2.87 billion. Despite falling short of the analyst estimate of $2.90 billion, this revenue reflected a year-over-year increase of 7.3%. Analysts project that Hilton Worldwide is on track to report an annual EPS of 7.

Stock Buyback Initiative

In a significant move, Hilton Worldwide's Board of Directors introduced a stock buyback program on Thursday, November 14th, authorizing up to $3.50 billion in share repurchases. This buyback plan allows the company to buy back approximately 5.7% of its shares in the open market, signaling confidence from the management regarding the shares' current valuation.

Insider Trading Activities

In related news, insider Michael W. Duffy sold 14,357 shares on October 24th at an average price of $235.73, totaling $3,384,375.61. After this transaction, he retains 22,833 shares valued at approximately $5,382,423.09, marking a 38.60% decrease in his position. Presently, company insiders own 2.50% of the total stock.

Institutional Investor Insights

Recent changes in stakes from institutional investors have also been notable. Signature Estate & Investment Advisors LLC raised its ownership in Hilton by 2.1% in the last quarter, now possessing 2,029 shares valued at $468,000. Other institutions, including Harbor Capital Advisors Inc. and Massmutual Trust Co. FSB ADV, have similarly increased their positions. As of now, institutional investors hold 95.90% of Hilton Worldwide's stock.

About Hilton Worldwide

Hilton Worldwide Holdings Inc. operates as a leading hospitality company, managing, franchising, owning, and leasing hotels and resorts. It functions through two key segments: Management and Franchise and Ownership. The firm oversees an array of hotel brands, ranging from luxury to economy, including brands under the Waldorf Astoria, Hilton Hotels & Resorts, Embassy Suites, and many others.

Hilton, stocks, Barclays