Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “Starwood has significant international presence and is therefore highly vulnerable to fluctuations in exchange rates. Moreover, declining revenues from the company’s residential business due to the sale of Bal Harbor remain a concern, which could continue to hurt the top line in the near term. Further, estimates have been going down ahead of Starwood’s third quarter earnings release. Nonetheless, acquisition by Marriott bode well as it would lead to the creation of world's largest hotel company. Moreover, aggressive expansion and the company's asset disposition strategy should drive growth. Also, the company has mostly positive record of earnings surprises in recent quarters. However, political uncertainties in Europe and in some parts of Africa and the economic slowdown in China are expected to keep the top line and operating margins under pressure.”

Separately, TheStreet cut Starwood Hotels & Resorts Worldwide from a “buy” rating to a “hold” rating in a research report on Tuesday, July 26th. Three analysts have rated the stock with a sell rating, sixteen have given a hold rating and four have assigned a buy rating to the company. Starwood Hotels & Resorts Worldwide currently has an average rating of “Hold” and a consensus target price of $78.83.

Analyst Recommendations for Starwood Hotels & Resorts Worldwide (NYSE:HOT)

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Starwood Hotels & Resorts Worldwide (NYSE:HOT) traded up 2.42% during midday trading on Tuesday, reaching $76.91. The company had a trading volume of 8,761,902 shares. The company has a 50-day moving average price of $77.47 and a 200-day moving average price of $77.08. Starwood Hotels & Resorts Worldwide has a one year low of $56.87 and a one year high of $84.37. The stock has a market capitalization of $13.04 billion, a price-to-earnings ratio of 157.93 and a beta of 1.99.

Starwood Hotels & Resorts Worldwide (NYSE:HOT) last posted its earnings results on Tuesday, July 26th. The company reported $0.71 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.74 by $0.03. Starwood Hotels & Resorts Worldwide had a return on equity of 50.53% and a net margin of 1.47%. The business had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.34 billion. During the same quarter in the previous year, the firm earned $0.84 earnings per share. Starwood Hotels & Resorts Worldwide’s quarterly revenue was up .4% compared to the same quarter last year. On average, equities analysts expect that Starwood Hotels & Resorts Worldwide will post $2.94 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, September 30th. Investors of record on Friday, September 23rd will be paid a $0.375 dividend. The ex-dividend date of this dividend is Wednesday, September 21st. This represents a $1.50 annualized dividend and a dividend yield of 2.00%. Starwood Hotels & Resorts Worldwide’s payout ratio is currently 312.50%.

Several hedge funds have recently bought and sold shares of the company. Glenmede Trust Co. NA increased its stake in Starwood Hotels & Resorts Worldwide by 0.5% in the second quarter. Glenmede Trust Co. NA now owns 3,647 shares of the company’s stock valued at $269,000 after buying an additional 18 shares during the last quarter. Evercore Wealth Management LLC increased its stake in Starwood Hotels & Resorts Worldwide by 0.4% in the second quarter. Evercore Wealth Management LLC now owns 4,725 shares of the company’s stock valued at $349,000 after buying an additional 20 shares during the last quarter. CIBC Asset Management Inc increased its stake in Starwood Hotels & Resorts Worldwide by 0.4% in the second quarter. CIBC Asset Management Inc now owns 17,843 shares of the company’s stock valued at $1,319,000 after buying an additional 65 shares during the last quarter. Commonwealth Equity Services Inc increased its stake in Starwood Hotels & Resorts Worldwide by 1.0% in the first quarter. Commonwealth Equity Services Inc now owns 7,572 shares of the company’s stock valued at $632,000 after buying an additional 78 shares during the last quarter. Finally, Brown Advisory Inc. increased its stake in Starwood Hotels & Resorts Worldwide by 0.7% in the second quarter. Brown Advisory Inc. now owns 13,620 shares of the company’s stock valued at $1,007,000 after buying an additional 96 shares during the last quarter. Institutional investors own 83.45% of the company’s stock.

Starwood Hotels & Resorts Worldwide Company Profile

Starwood Hotels & Resorts Worldwide, Inc is a hotel and leisure company. The Company’s hotel business is focused on the global operation of hotels and resorts primarily in the luxury and upper upscale segments of the lodging industry. The Company manages and operates its hotel business in three hotel segments: the Americas; Europe, Africa and the Middle East (EAME), and Asia Pacific.

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