Marriott Vacations Worldwide (NYSE:VAC) Shares Gap Down – Should You Sell?

Shares of Marriott Vacations Worldwide Corporation (NYSE:VAC) gapped down prior to trading on Friday . The stock had previously closed at $62.48, but opened at $60.07. Marriott Vacations Worldwide shares last traded at $59.69, with a volume of 153,269 shares.

Wall Street Analyst Weigh In

VAC has been the subject of a number of analyst reports. The Goldman Sachs Group reduced their price target on Marriott Vacations Worldwide from $63.00 to $54.00 and set a “sell” rating for the company in a research report on Tuesday, November 11th. Morgan Stanley reiterated an “underweight” rating and issued a $52.00 target price (down previously from $70.00) on shares of Marriott Vacations Worldwide in a report on Friday. Wall Street Zen upgraded Marriott Vacations Worldwide from a “sell” rating to a “hold” rating in a research note on Sunday, December 21st. Citizens Jmp reduced their price objective on Marriott Vacations Worldwide from $115.00 to $60.00 and set a “market outperform” rating for the company in a research report on Friday, November 7th. Finally, Wells Fargo & Company began coverage on shares of Marriott Vacations Worldwide in a report on Tuesday, November 18th. They set an “underweight” rating and a $37.00 price objective on the stock. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Marriott Vacations Worldwide presently has an average rating of “Hold” and an average price target of $61.13.

Marriott Vacations Worldwide Price Performance

The company has a market cap of $2.06 billion, a price-to-earnings ratio of 13.37, a P/E/G ratio of 1.32 and a beta of 1.35. The company has a debt-to-equity ratio of 2.29, a quick ratio of 3.22 and a current ratio of 3.87. The company’s 50 day moving average price is $55.61 and its 200 day moving average price is $67.66.

Marriott Vacations Worldwide (NYSE:VAC) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $1.64 by $0.05. Marriott Vacations Worldwide had a net margin of 3.44% and a return on equity of 11.44%. The firm had revenue of $1.26 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same period in the prior year, the firm earned $1.80 earnings per share. The company’s quarterly revenue was down 3.2% compared to the same quarter last year. Marriott Vacations Worldwide has set its FY 2025 guidance at 6.700-7.100 EPS. On average, equities research analysts predict that Marriott Vacations Worldwide Corporation will post 6.23 earnings per share for the current fiscal year.

Marriott Vacations Worldwide Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 24th were paid a $0.80 dividend. This is an increase from Marriott Vacations Worldwide’s previous quarterly dividend of $0.79. The ex-dividend date of this dividend was Wednesday, December 24th. This represents a $3.20 annualized dividend and a dividend yield of 5.4%. Marriott Vacations Worldwide’s payout ratio is 71.75%.

Insider Transactions at Marriott Vacations Worldwide

In related news, Director William W. Mccarten acquired 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The stock was acquired at an average cost of $48.08 per share, with a total value of $240,400.00. Following the completion of the purchase, the director directly owned 13,708 shares in the company, valued at approximately $659,080.64. This trade represents a 57.42% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lizanne Galbreath acquired 5,500 shares of Marriott Vacations Worldwide stock in a transaction that occurred on Tuesday, November 18th. The shares were purchased at an average cost of $46.51 per share, for a total transaction of $255,805.00. Following the purchase, the director directly owned 25,714 shares in the company, valued at $1,195,958.14. The trade was a 27.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 96,209 shares of company stock valued at $4,573,353. 1.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VAC. Goldman Sachs Group Inc. lifted its holdings in shares of Marriott Vacations Worldwide by 18.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 140,662 shares of the company’s stock valued at $9,036,000 after purchasing an additional 21,623 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of Marriott Vacations Worldwide by 147.9% in the first quarter. Empowered Funds LLC now owns 8,487 shares of the company’s stock valued at $545,000 after buying an additional 5,064 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Marriott Vacations Worldwide by 4.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 100,636 shares of the company’s stock worth $6,465,000 after acquiring an additional 4,497 shares in the last quarter. Strs Ohio bought a new stake in shares of Marriott Vacations Worldwide during the first quarter worth $1,263,000. Finally, Inspire Investing LLC raised its holdings in shares of Marriott Vacations Worldwide by 19.7% during the first quarter. Inspire Investing LLC now owns 5,321 shares of the company’s stock worth $342,000 after acquiring an additional 874 shares during the period. 89.52% of the stock is owned by institutional investors and hedge funds.

Marriott Vacations Worldwide Company Profile

Marriott Vacations Worldwide Corporation, headquartered in Orlando, Florida, specializes in the development, marketing and management of vacation ownership resorts and related products. Originally launched as a division of Marriott International in 1984, the company became a separate publicly traded entity in 2011. Since then, it has expanded its offerings through both organic growth and strategic acquisitions, establishing itself as a leading provider in the global timeshare industry.

The company’s core business activities include selling vacation ownership interests, managing a growing portfolio of branded resorts and operating a loyalty program that allows members to exchange or use points at affiliated properties.