Hyatt Hotels (H) Upgraded to Strong-Buy at Zacks Investment Research
Hyatt Hotels (NYSE:H) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday. The brokerage currently has a $88.00 target price on the stock. Zacks Investment Research‘s target price indicates a potential upside of 15.32% from the stock’s previous close.
According to Zacks, “Hyatt’s shares have outperformed the industry over the past six months. The company also saw upward revisions in current year earnings over the last 60 days. Hyatt’s strong developmental pipeline, consistent expansion plans and large international exposure continue driving growth. Extension of the Hyatt brand beyond traditional hotel stays into the swiftly growing wellness space with the Miraval acquisition also bodes well. However, owing to international expansion, Hyatt is exposed to headwinds in the regions where it operates. Various macroeconomic issues in the Middle East and economic slowdown in China may keep revenues under pressure. Also, volatility in exchange rates might continue to hurt results. In fact, the company has been witnessing a decline in international inbound travel, given a stronger dollar.”
Several other research firms also recently weighed in on H. SunTrust Banks reaffirmed a “hold” rating and issued a $61.00 target price on shares of Hyatt Hotels in a research report on Tuesday, October 17th. Berenberg Bank raised Hyatt Hotels from a “hold” rating to a “buy” rating and lifted their target price for the company from $69.20 to $78.00 in a research report on Friday, November 10th. Citigroup raised Hyatt Hotels from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a research report on Thursday, December 14th. Morgan Stanley lifted their target price on Hyatt Hotels from $63.00 to $67.00 and gave the company an “equal weight” rating in a research report on Friday, November 3rd. Finally, Stifel Nicolaus lifted their target price on Hyatt Hotels from $61.00 to $67.00 and gave the company a “hold” rating in a research report on Monday, November 6th. One research analyst has rated the stock with a sell rating, six have given a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the stock. Hyatt Hotels has a consensus rating of “Buy” and a consensus target price of $73.85.
Hyatt Hotels (NYSE:H) last issued its earnings results on Thursday, November 2nd. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.09. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.09 billion. Hyatt Hotels had a return on equity of 6.13% and a net margin of 4.66%. During the same period last year, the company earned $0.47 EPS. equities analysts expect that Hyatt Hotels will post 1.73 EPS for the current year.
Hyatt Hotels announced that its board has authorized a stock repurchase program on Thursday, December 14th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.
In other news, insider Stephen G. Haggerty sold 7,117 shares of the business’s stock in a transaction that occurred on Thursday, October 19th. The stock was sold at an average price of $61.60, for a total value of $438,407.20. Following the transaction, the insider now owns 57,326 shares of the company’s stock, valued at $3,531,281.60. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Stephen G. Haggerty sold 46,869 shares of the business’s stock in a transaction that occurred on Monday, October 16th. The shares were sold at an average price of $61.77, for a total value of $2,895,098.13. Following the completion of the transaction, the insider now directly owns 32,125 shares in the company, valued at approximately $1,984,361.25. The disclosure for this sale can be found here. In the last quarter, insiders sold 986,001 shares of company stock valued at $67,260,348. 27.51% of the stock is owned by company insiders.
A number of hedge funds have recently made changes to their positions in H. Public Employees Retirement System of Ohio lifted its position in shares of Hyatt Hotels by 16.7% in the third quarter. Public Employees Retirement System of Ohio now owns 19,442 shares of the company’s stock valued at $1,201,000 after acquiring an additional 2,782 shares in the last quarter. California Public Employees Retirement System lifted its position in shares of Hyatt Hotels by 4.9% in the third quarter. California Public Employees Retirement System now owns 102,716 shares of the company’s stock valued at $6,347,000 after acquiring an additional 4,816 shares in the last quarter. Bamco Inc. NY lifted its position in shares of Hyatt Hotels by 0.4% in the third quarter. Bamco Inc. NY now owns 4,456,997 shares of the company’s stock valued at $275,398,000 after acquiring an additional 17,660 shares in the last quarter. Highbridge Capital Management LLC lifted its position in shares of Hyatt Hotels by 483.4% in the third quarter. Highbridge Capital Management LLC now owns 62,129 shares of the company’s stock valued at $3,839,000 after acquiring an additional 51,479 shares in the last quarter. Finally, Jane Street Group LLC lifted its position in shares of Hyatt Hotels by 585.1% in the third quarter. Jane Street Group LLC now owns 34,723 shares of the company’s stock valued at $2,146,000 after acquiring an additional 29,655 shares in the last quarter. 38.79% of the stock is currently owned by hedge funds and other institutional investors.
About Hyatt Hotels
Hyatt Hotels Corporation is a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia).
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