ORLANDO—Charles R. Corbin Jr., Executive Vice President and General Counsel of Hilton Grand Vacations Inc . (NYSE:HGV), has sold a significant portion of company stock, according to a recent SEC filing. On November 21 and 22, Corbin disposed of a total of 50,000 shares of common stock, with sales prices ranging from $41.545 to $41.902 per share. The total value of these transactions amounted to approximately $2.08 million.
Following the transactions, Corbin retains ownership of 87,921 shares in the company. The sales were executed in direct ownership capacity, as noted in the filing. Hilton Grand Vacations, headquartered in Orlando, operates within the lodging sector, providing vacation ownership opportunities.
In other recent news, Hilton Grand Vacations has made significant financial strides, including the expansion of its credit facility to $850 million, indicating potential growth and investment in its timeshare business. The company has also successfully completed a substantial securitization of timeshare loans, amounting to $500 million, marking its largest transaction to date. These funds, after deducting fees, are designated for debt repayment and other corporate purposes.
In the realm of acquisitions, Hilton Grand Vacations has amended its license agreement following the recent acquisition of Bluegreen Vacations (NYSE:BXG) Holding Corporation. The revised agreement aids the integration of Bluegreen into Hilton Grand Vacations' operations and includes an updated fee arrangement and a rebranding plan for Bluegreen properties.
On the earnings front, Hilton Grand Vacations reported lower than expected third-quarter earnings, with an adjusted earnings per share of $0.67, missing the consensus estimate of $0.76. However, the company's revenue slightly surpassed expectations at $1.31 billion. Amid these developments, Hilton Grand Vacations maintained its full-year 2024 guidance for adjusted EBITDA, projecting between $1.075 billion to $1.135 billion.
These are among the recent developments for Hilton Grand Vacations, reflecting the company's ongoing efforts to expand its portfolio and enhance its market presence in the hospitality industry.
InvestingPro Insights
The recent stock sale by Hilton Grand Vacations' Executive Vice President and General Counsel comes at a time when the company's financial performance shows mixed signals. According to InvestingPro data, HGV's revenue growth has been robust, with a 27.69% increase in the most recent quarter and an 18.38% growth over the last twelve months, reaching $4.24 billion. This strong top-line performance aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the positive revenue trajectory, HGV's valuation metrics present a nuanced picture. The company's P/E ratio stands at 48.5, which an InvestingPro Tip characterizes as "trading at a high earnings multiple." This elevated valuation could be a factor in executive decision-making regarding stock holdings.
Interestingly, another InvestingPro Tip reveals that management has been aggressively buying back shares, which contrasts with the insider sale reported in the article. This buyback activity, coupled with the company's profitability over the last twelve months and analysts' expectations of profitability this year, suggests confidence in HGV's financial health.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Hilton Grand Vacations, providing deeper insights into the company's financial position and market performance.
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