Hyatt Hotels (H) Downgraded to “Hold” at Zacks Investment Research
Hyatt Hotels (NYSE:H) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Thursday.
According to Zacks, “Hyatt’s shares have outperformed the industry over the past six months. The company also saw upward revisions for 2018 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.”
H has been the topic of several other reports. Wells Fargo & Co raised shares of Hyatt Hotels from a “market perform” rating to an “outperform” rating and set a $76.00 target price on the stock in a research note on Monday, November 6th. Raymond James Financial raised shares of Hyatt Hotels from a “market perform” rating to an “outperform” rating and set a $82.00 price objective on the stock in a research note on Monday, January 8th. B. Riley lowered shares of Hyatt Hotels from a “buy” rating to a “neutral” rating and set a $70.00 price objective on the stock. in a research note on Monday, November 6th. SunTrust Banks reaffirmed a “hold” rating and issued a $61.00 price objective on shares of Hyatt Hotels in a research note on Tuesday, October 17th. Finally, Berenberg Bank raised shares of Hyatt Hotels from a “hold” rating to a “buy” rating and raised their price objective for the company from $69.20 to $78.00 in a research note on Friday, November 10th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and eight have issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target 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 the Thomson Reuters’ consensus estimate of $0.17 by $0.09. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.09 billion. Hyatt Hotels had a net margin of 4.66% and a return on equity of 6.13%. During the same period in the prior year, the firm earned $0.47 earnings per share. equities analysts expect that Hyatt Hotels will post 1.73 EPS for the current year.
Hyatt Hotels announced that its board has initiated a share repurchase program on Thursday, December 14th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.
In other news, insider P.G. Penny Trust sold 600,000 shares of Hyatt Hotels stock in a transaction dated Tuesday, November 21st. The shares were sold at an average price of $70.00, for a total value of $42,000,000.00. Following the completion of the transaction, the insider now owns 600,000 shares in the company, valued at $42,000,000. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark Samuel Hoplamazian sold 49,173 shares of Hyatt Hotels stock in a transaction dated Thursday, December 7th. The stock was sold at an average price of $71.54, for a total transaction of $3,517,836.42. Following the completion of the transaction, the insider now owns 300,655 shares of the company’s stock, valued at approximately $21,508,858.70. The disclosure for this sale can be found here. Insiders have sold 774,539 shares of company stock valued at $54,245,219 in the last 90 days. 27.51% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently bought and sold shares of H. Jennison Associates boosted its position in shares of Hyatt Hotels by 7.1% in the third quarter. Jennison Associates now owns 1,844,699 shares of the company’s stock valued at $86,885,000 after acquiring an additional 122,983 shares during the period. Acadian Asset Management boosted its stake in Hyatt Hotels by 46.6% in the 4th quarter. Acadian Asset Management now owns 91,769 shares of the company’s stock worth $4,315,000 after purchasing an additional 29,173 shares in the last quarter. First Quadrant L P CA boosted its stake in Hyatt Hotels by 709.3% in the 4th quarter. First Quadrant L P CA now owns 311,592 shares of the company’s stock worth $14,651,000 after purchasing an additional 273,092 shares in the last quarter. Capital Fund Management S.A. bought a new position in Hyatt Hotels in the 4th quarter worth about $301,000. Finally, California State Teachers Retirement System boosted its stake in Hyatt Hotels by 1.6% in the 4th quarter. California State Teachers Retirement System now owns 65,127 shares of the company’s stock worth $3,062,000 after purchasing an additional 1,047 shares in the last quarter. Hedge funds and other institutional investors own 38.78% of the company’s stock.
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Hyatt Hotels Company Profile
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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