A recent filing with the U.S. Securities and Exchange Commission reveals that Baker Avenue Asset Management LP strategically reduced its position in Hilton Worldwide Holdings Inc. (NYSE: HLT) during the first quarter. This move reflects a 7.0% decrease in their holdings, signaling a recalibration of their portfolio concerning the prominent hospitality giant.
Following this adjustment, Baker Avenue Asset Management LP now holds 18,997 shares of Hilton Worldwide stock. The transaction involved the sale of 1,434 shares, with the remaining investment in Hilton Worldwide valued at a substantial $4,323,000 as per their latest SEC declaration, highlighting the firm’s continued, albeit slightly lessened, confidence in the company.
However, Baker Avenue was not the only institutional player making moves in HLT. Sowell Financial Services LLC, for instance, initiated a new position in Hilton Worldwide during the first quarter, acquiring shares valued at approximately $314,000. Simultaneously, Artemis Investment Management LLP increased its stake by 3.9%, adding 6,146 shares to reach a total of 163,281 shares, now worth an impressive $37,155,000.
Further demonstrating active market participation, Massachusetts Financial Services Co. MA significantly boosted its Hilton Worldwide stake by 8.1% in the first quarter, purchasing an additional 364,307 shares to own a staggering 4,836,430 shares, valued at over $1.1 billion. Flagship Harbor Advisors LLC also entered the scene with a new stake worth around $217,000, while Oppenheimer Asset Management Inc. dramatically raised its holdings by 44.3%, acquiring 1,691 additional shares to bring their total to 5,507 shares, valued at $1,253,000.
These institutional activities coincide with varied assessments from equities research analysts regarding Hilton Worldwide’s outlook. Recent reports show Morgan Stanley adjusting their price objective from $251.00 to $241.00 with an “overweight” rating, while Truist Financial raised their target to $246.00 with a “hold.” Macquarie, JPMorgan Chase & Co., and Evercore ISI also issued revised price objectives and ratings, contributing to a consensus “Moderate Buy” rating for HLT stock with an average price target of $259.19.
On the trading front, shares of Hilton Worldwide opened at $260.79 on a recent Friday, reflecting current market dynamics. The company’s stock has experienced a 52-week low of $196.04 and a 52-week high of $279.46, showcasing its volatility. With a 50-day moving average of $261.36 and a 200-day moving average of $247.74, Hilton Worldwide maintains a substantial market capitalization of $61.34 billion, alongside a price-to-earnings ratio of 40.06 and a beta of 1.26.
The company’s latest earnings report, announced on Wednesday, July 23rd, revealed a strong performance, with Hilton Worldwide reporting $2.20 earnings per share (EPS), surpassing analysts’ consensus estimates of $2.04 by $0.16. Revenue for the quarter reached $3.14 billion, exceeding expectations of $3.09 billion, and marking a 6.3% increase compared to the same quarter last year, despite a negative return on equity of 46.13%.
In further news for investors, Hilton Worldwide recently declared a quarterly dividend of $0.15, payable on Tuesday, September 30th, to shareholders of record on Friday, August 29th. This translates to an annualized dividend of $0.60, offering a yield of 0.2% and reflecting a current payout ratio of 9.22%, indicating the company’s commitment to shareholder returns.
As a global hospitality leader, Hilton Worldwide Holdings Inc. manages, franchises, owns, and leases an extensive portfolio of hotels and resorts. Operating through its Management and Franchise, and Ownership segments, the company boasts a diverse range of brands, from luxury lines like Waldorf Astoria and Conrad to lifestyle brands such as Canopy and Curio Collection, and popular full-service options like Hilton Hotels & Resorts and DoubleTree by Hilton, catering to a wide spectrum of travelers and further solidifying its presence in the hotel industry.
