Hilton Grand Vacations Recent Insider Activity

Revealing a significant insider sell on November 28, Apollo Principal Holdings A GP Ltd, 10% Owner at Hilton Grand Vacations HGV, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Ltd executed a sale of 4,000,000 shares of Hilton Grand Vacations with a total value of $168,400,000.

Tracking the Thursday's morning session, Hilton Grand Vacations shares are trading at $41.74, showing a up of 0.24%.

About Hilton Grand Vacations

Hilton Grand Vacations Inc is a timeshare company engaged in developing, marketing, selling, managing, and operating timeshare resorts, timeshare plans, and ancillary reservation services, under the Hilton Grand Vacations brand. The company operates business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management. The majority of the company's revenue is earned through the Real estate sales and financing segment, which generates revenue from VOI sales, and Financing.

Financial Insights: Hilton Grand Vacations

Revenue Growth: Hilton Grand Vacations displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 28.29%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

  • Gross Margin: The company faces challenges with a low gross margin of 27.64%, suggesting potential difficulties in cost control and profitability compared to its peers.

  • Earnings per Share (EPS): Hilton Grand Vacations's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.28.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.63, caution is advised due to increased financial risk.

In-Depth Valuation Examination:

  • Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 47.32, Hilton Grand Vacations's stock is perceived as being overvalued in the market.

  • Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.93, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 14.11, Hilton Grand Vacations presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Hilton Grand Vacations's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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