Wyndham Worldwide Corp (WYN) Downgraded to Sell at Zacks Investment Research
Wyndham Worldwide Corp (NYSE:WYN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “Owing to its large international presence, Wyndham is exposed to headwinds in the regions where it operates. Despite immense growth potential, a sluggish economy in Brazil, uncertainty in Africa, macroeconomic factors in Venezuela and China are likely to keep revenues under pressure. The company expects soft demand in oil-producing regions to continue to hurt RevPAR too. Meanwhile, although the new owner strategy is expected to benefit its timeshare business in the long run, it is currently weighing on the company’s EBITDA. Nevertheless, Wyndham’s robust developmental pipeline, prudent acquisitions and strong loyalty program should boost growth. It has a positive record of earnings surprises in recent quarters and estimates are stable ahead of its third-quarter earnings release. Still, currency movements might continue to hurt results as has been the case over the past few quarters.”
WYN has been the subject of several other reports. BidaskClub cut Wyndham Worldwide Corp from a “buy” rating to a “hold” rating in a report on Saturday, August 5th. Telsey Advisory Group cut Wyndham Worldwide Corp from an “outperform” rating to a “market perform” rating and set a $115.00 target price for the company. in a report on Friday, August 4th. Stifel Nicolaus restated a “buy” rating and set a $110.00 target price (up from $108.00) on shares of Wyndham Worldwide Corp in a report on Thursday, June 22nd. Finally, Buckingham Research began coverage on Wyndham Worldwide Corp in a report on Monday, June 19th. They set a “buy” rating and a $114.00 target price for the company. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and four have issued a buy rating to the stock. Wyndham Worldwide Corp has an average rating of “Hold” and an average price target of $100.43.
Wyndham Worldwide Corp (NYSE:WYN) traded up 0.87% during trading on Thursday, hitting $106.82. The company had a trading volume of 650,311 shares. Wyndham Worldwide Corp has a 1-year low of $62.60 and a 1-year high of $107.12. The stock has a market capitalization of $10.98 billion, a price-to-earnings ratio of 19.67 and a beta of 1.36. The company’s 50 day moving average price is $100.70 and its 200-day moving average price is $97.68.
Wyndham Worldwide Corp (NYSE:WYN) last issued its earnings results on Wednesday, August 2nd. The company reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.50 by $0.03. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.47 billion. Wyndham Worldwide Corp had a return on equity of 91.17% and a net margin of 10.17%. Wyndham Worldwide Corp’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same period in the prior year, the business posted $1.40 EPS. On average, analysts expect that Wyndham Worldwide Corp will post $6.16 EPS for the current year.
In other news, Director George Herrera sold 323 shares of the firm’s stock in a transaction that occurred on Friday, August 11th. The stock was sold at an average price of $97.60, for a total value of $31,524.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 2.39% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in Wyndham Worldwide Corp by 0.5% during the 2nd quarter. Vanguard Group Inc. now owns 10,449,345 shares of the company’s stock valued at $1,049,218,000 after buying an additional 50,307 shares in the last quarter. FMR LLC increased its position in Wyndham Worldwide Corp by 88.5% during the 2nd quarter. FMR LLC now owns 9,483,756 shares of the company’s stock valued at $952,263,000 after buying an additional 4,451,772 shares in the last quarter. BlackRock Inc. increased its position in Wyndham Worldwide Corp by 1.3% during the 2nd quarter. BlackRock Inc. now owns 6,586,534 shares of the company’s stock valued at $661,354,000 after buying an additional 83,501 shares in the last quarter. LSV Asset Management increased its position in Wyndham Worldwide Corp by 1.7% during the 2nd quarter. LSV Asset Management now owns 3,201,503 shares of the company’s stock valued at $321,462,000 after buying an additional 54,923 shares in the last quarter. Finally, Bessemer Group Inc. increased its position in Wyndham Worldwide Corp by 38.8% during the 2nd quarter. Bessemer Group Inc. now owns 1,779,209 shares of the company’s stock valued at $178,650,000 after buying an additional 497,029 shares in the last quarter. Institutional investors own 94.99% of the company’s stock.
About Wyndham Worldwide Corp
Wyndham Worldwide Corporation is a hospitality company. The Company offers a range of hospitality services and products through its global portfolio of brands. The Company operates through three segments: Wyndham Hotel Group, Wyndham Destination Network and Wyndham Vacation Ownership. The Company’s brands include Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club and WorldMark by Wyndham.
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