Hilton Worldwide Holdings Inc. (HLT): Is A Telltale Shift Coming?

Analysts are forecasting revenue to suffer decline of -0.2 percent to $2.27B in the next fiscal quarter, while earnings are seen soaring by nearly 27.78 percent to $0.69 per share. History has shown that shares in Hilton Worldwide Holdings Inc. have gone up on 12 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.77 per share, better than the $0.76, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.25B, worse than the $2.4B analysts expected. Earnings are estimated to increase by 35.5 percent this year, 17.24 percent next year and continue to increase by 23.61 percent annually for the next 5 years.

Hilton Worldwide Holdings Inc. (HLT) will probably climb 4.51 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $97 price as 12-month high target. This represents a whopping 22.21 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $82, which represents a return potential of 3.31 percent when compared to the closing price of the stock of $79.37 on Wednesday, February 13. The lowest price target for the stock is $73 — slightly more than -8.03 percent from HLT’s current share price.

The stock is currently hovering around the first support level of $77.84. Below this, the next support is placed in the zone of $76.3. Till the time, the HLT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 71.37 on daily chart, which may remain a cause for concern. If the price breaks below $76.3 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $80.31 mark may result into a pull-back move towards $81.24 level.

On 13th of February, Hilton Worldwide Holdings Inc. (NYSE:HLT) shares ended higher after a volatile session. The shares accumulated 5.05 points or 6.79 percent at $79.37 with a heavy trade volume of 5.71 million shares. After opening the session at $77.6, the shares went as high as $79.71 and as low as $77.24, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $23.8 billion and now has 299.66 million shares outstanding. Hilton Worldwide Holdings Inc. (HLT) stock has gained 11.8 percent of market value in 21 trading days.

HLT stock has a trailing 3-year beta of 1.14, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.3 a share in the trailing twelve months. The stock’s value has surged 10.54 percent year to date (YTD) against a decline of -2.99 percent in 12 month’s time. The company’s shares still trade -8.89 percent away from its 1-year high of $87.11 and 24.48 percent up from 52-week low of $63.76. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Hilton Worldwide Holdings Inc. (HLT) are trading at a P/E ratio of 32.3 times earnings reported for the past 12 months. The industry HLT operates in has an average P/E of 26.75. Its P/E ratio went as low as 17.18X and as high as 43.96 over the 5-year span. Further, it is sporting a 2.67 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.5. 40.2 percent is the gross profit margin for Hilton Worldwide Holdings Inc. and operating margin sits at 15.9 percent. Along with this, the net profit margin is 15.5 percent.

Let’s take a look at some insider activity at Hilton Worldwide Holdings Inc. (NYSE:HLT) and see the pattern. The earliest insider trade took place on 04/13/2018. Hna Tourism Group Co., Ltd. parted with a total of 66 million shares of company at average share price of $73. The total for the sales was set at $4818 million. After this transaction, the 10% Owner account balance stood at 16.5 million shares. The stock grew 8.73 percent since that insider sale. On 10/04/2017, Hlt Holdco Iii Llc, 10% Owner, sold 15.6 million shares at a price per share of $69.11. This removed 1077.85 million shares from the insider’s fortune and the stock saw a 14.85 percent rally in value since the news became public. This transaction left 206.23 thousand shares in the 10% Owner account.

On 10/04/2017, 10% Owner Blackstone Real Estate Partner performed a sale transaction worth $1077.85 million. This sale at $69.11 each has eliminated 15.6 million shares from the insider’s portfolio position. Meanwhile, shares have recorded 14.85 percent increase since the transaction was reported. The insider now is left with 206.23 thousand shares remaining in the account. Blackstone Real Estate Associa, who performs the 10% Owner job, sold 15.6 million shares for $1077.85 million. The disposal occurred on 10/04/2017 was priced at $69.11 per share. The share price soared 14.85 percent since the reporting date. Blackstone Real Estate Associa now left with a stake of 206.23 thousand HLT stock worth $16.37 million after the insider selling.