Iridian Asset Management Acquires 190,909 Shares of Hilton Grand Vacations for $8.11 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: NASDAQ.COM
- Share Acquisition: Iridian Asset Management increased its stake in Hilton Grand Vacations (HGV) by 190,909 shares in Q4 2023, with an estimated transaction value of $8.11 million, indicating strong confidence in the company.
- Position Value Growth: As of December 31, Iridian's total position in HGV reached $20.81 million, reflecting a $9.35 million increase from the previous quarter due to both price appreciation and new share purchases.
- Strong Performance: Hilton Grand Vacations reported $907 million in contract sales for Q3, a nearly 17% year-over-year increase, with adjusted EBITDA of $245 million despite construction-related revenue deferrals, and management reaffirmed full-year EBITDA guidance of $1.125 billion to $1.165 billion.
- Strategic Implications: The increase in Iridian's stake to 7.66% highlights the company's strong cash flow and shareholder return potential based on a diversified revenue base, aligning with Iridian's investment strategy focused on resilient business models.
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Analyst Views on HGV
Wall Street analysts forecast HGV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HGV is 48.16 USD with a low forecast of 42.00 USD and a high forecast of 59.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 44.120
Low
42.00
Averages
48.16
High
59.00
Current: 44.120
Low
42.00
Averages
48.16
High
59.00
About HGV
Hilton Grand Vacations Inc. is a global timeshare company. The Company is engaged in developing, marketing, selling, managing and operating timeshare resorts, timeshare plans and ancillary reservation services, primarily under the Hilton Grand Vacations brand. It operates through two segments: Real estate sales and financing and Resort operations and club management. The Real estate sales and financing segment markets and sells vacation ownership interests (VOIs). It also sources VOIs through fee-for-service agreements with third-party developers. It provides consumer financing, which includes interest income generated from the origination of consumer loans to customers to finance their purchase of VOIs and servicing the loans. Resort operations and club management segment manage the clubs and earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. It offers vacation experiences for guests and approximately 724,000 club members.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Advantage Partners with LPGA Star Lauren Coughlin
- Brand Ambassador Partnership: First Advantage has announced a sponsorship with LPGA professional golfer Lauren Coughlin, who will serve as the first Brand Ambassador, reinforcing the company's alignment with top-tier talent.
- Event Promotion: Coughlin will represent First Advantage throughout the 2026 LPGA season, with the brand logo featured on her apparel during tournament appearances, starting with the Hilton Grand Vacations Tournament of Champions from January 29 to February 1.
- Digital Promotion: Both parties will collaboratively promote the sponsorship through digital outlets such as social media and exclusive appearances throughout the year, enhancing brand visibility and market impact.
- User Conference Participation: Coughlin will be a guest speaker at First Advantage's annual user conference, showcasing her close connection with the brand and alignment with the company's core values.
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Iridian Asset Management Buys $8.11M in Hilton Grand Vacations (HGV) Shares, Increasing Stake to 7.66%
- Share Increase: Iridian Asset Management disclosed a purchase of 190,909 shares of Hilton Grand Vacations (HGV) in Q4, with an estimated transaction value of $8.11 million, indicating strong confidence in the company's prospects.
- Asset Management Ratio Rise: The stake in Hilton Grand Vacations increased to 7.66%, reflecting Iridian's focus on the company's growth potential, particularly as it occupies a significant position in their investment portfolio.
- Strong Financial Performance: Hilton Grand Vacations reported $907 million in contract sales for Q3, a nearly 17% year-over-year increase, with adjusted EBITDA reaching $245 million, showcasing robust cash generation despite construction-related revenue deferrals.
- Management Confidence: Management reaffirmed full-year adjusted EBITDA guidance of $1.125 billion to $1.165 billion, indicating broad confidence in operational and financial performance, which suggests strong potential for future shareholder returns.
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