Zacks Investment Research downgraded shares of Wyndham Worldwide Corp (NYSE:WYN) from a hold rating to a sell rating in a research note published on Monday.
According to Zacks, “Wyndham’s Q3 adjusted earnings of $2.03 per share beat the Zacks Consensus Estimate by 1.5% and were up 7.4% year over year (y/y) on higher revenues and lower share count. Revenues rose 4% y/y due to increased contribution from all segments and outpaced the consensus mark by 2%. The plan to spin-off its Hotel Group segment is expected to increase the fit, focus and strategic flexibility of both the post spin-off companies. Going forward, the company’s robust developmental pipeline and prudent acquisitions is likely to continue to spur growth. Its superior loyalty program and technological upgrades bode well too. However, Wyndham’s shares underperformed its industry in the last six months. Although the new owner strategy is expected to benefit its timeshare business in the long run, it is currently weighing on the company’s EBITDA. Lingering global uncertainty in a few regions and currency movements further add to concerns.”
WYN has been the topic of a number of other reports. BidaskClub lowered Wyndham Worldwide Corp from a buy rating to a hold rating in a report on Saturday, August 5th. Telsey Advisory Group lowered Wyndham Worldwide Corp from an outperform rating to a market perform rating and set a $115.00 target price on the stock. in a report on Friday, August 4th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $108.29.
Wyndham Worldwide Corp (NYSE:WYN) last released its earnings results on Wednesday, October 25th. The company reported $2.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.02 by $0.01. The firm had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.67 billion. Wyndham Worldwide Corp had a return on equity of 97.31% and a net margin of 10.20%. Wyndham Worldwide Corp’s revenue was up 3.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.89 earnings per share.
Wyndham Worldwide Corp declared that its Board of Directors has authorized a share buyback program on Wednesday, October 25th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.
In related news, Director George Herrera sold 323 shares of Wyndham Worldwide Corp stock in a transaction dated Friday, August 11th. The stock was sold at an average price of $97.60, for a total value of $31,524.80. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 2.39% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. State of Wisconsin Investment Board increased its stake in Wyndham Worldwide Corp by 8.9% in the 3rd quarter. State of Wisconsin Investment Board now owns 370,019 shares of the company’s stock worth $39,004,000 after purchasing an additional 30,195 shares in the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its position in Wyndham Worldwide Corp by 5.9% during the 3rd quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 15,972 shares of the company’s stock worth $1,684,000 after acquiring an additional 890 shares during the period. State Board of Administration of Florida Retirement System boosted its position in Wyndham Worldwide Corp by 1.3% during the 3rd quarter. State Board of Administration of Florida Retirement System now owns 185,967 shares of the company’s stock worth $19,603,000 after acquiring an additional 2,350 shares during the period. Andra AP fonden boosted its position in Wyndham Worldwide Corp by 20.8% during the 3rd quarter. Andra AP fonden now owns 41,800 shares of the company’s stock worth $4,406,000 after acquiring an additional 7,200 shares during the period. Finally, Hussman Strategic Advisors Inc. acquired a new stake in Wyndham Worldwide Corp during the 3rd quarter worth about $2,635,000. 94.59% of the stock is currently owned by hedge funds and other institutional investors.
About Wyndham Worldwide Corp
Wyndham Worldwide Corporation is a hospitality company. The Company offers a range of hospitality services and products through its global portfolio of brands. The Company operates through three segments: Wyndham Hotel Group, Wyndham Destination Network and Wyndham Vacation Ownership. The Company’s brands include Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club and WorldMark by Wyndham.
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