Stock Traders Purchase Large Volume of Call Options on Hilton Worldwide (NYSE:HLT)

Hilton Worldwide Holdings Inc. (NYSE:HLT) was the target of some unusual options trading on Thursday. Stock traders purchased 51,117 call options on the company. This represents an increase of 3,723% compared to the average daily volume of 1,337 call options.

Hilton Worldwide Price Performance

NYSE:HLT traded up $12.70 during trading hours on Thursday, hitting $270.55. 2,122,180 shares of the company were exchanged, compared to its average volume of 1,411,938. The company’s 50 day moving average price is $249.92 and its 200-day moving average price is $235.26. The stock has a market capitalization of $65.96 billion, a price-to-earnings ratio of 58.05, a PEG ratio of 2.67 and a beta of 1.29. Hilton Worldwide has a 52-week low of $186.83 and a 52-week high of $273.78.

Hilton Worldwide (NYSE:HLT) last released its earnings results on Thursday, February 6th. The company reported $1.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.09. Hilton Worldwide had a negative return on equity of 60.85% and a net margin of 10.70%. On average, equities analysts predict that Hilton Worldwide will post 7 earnings per share for the current year.

Hilton Worldwide announced that its board has approved a share buyback program on Thursday, November 14th that permits the company to buyback $3.50 billion in shares. This buyback authorization permits the company to buy up to 5.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Melius Research restated a “hold” rating on shares of Hilton Worldwide in a research report on Monday, October 21st. Jefferies Financial Group increased their price objective on shares of Hilton Worldwide from $237.00 to $277.00 and gave the company a “hold” rating in a report on Thursday, January 2nd. Barclays boosted their target price on shares of Hilton Worldwide from $243.00 to $268.00 and gave the stock an “overweight” rating in a report on Friday, December 13th. Evercore ISI boosted their price target on shares of Hilton Worldwide from $210.00 to $240.00 and gave the stock an “in-line” rating in a research note on Monday, October 21st. Finally, Mizuho restated a “neutral” rating and set a $263.00 price objective (up previously from $243.00) on shares of Hilton Worldwide in a research report on Wednesday. Twelve research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $239.88.

Insider Buying and Selling at Hilton Worldwide

In other Hilton Worldwide news, insider Michael W. Duffy sold 23,366 shares of the firm’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $251.66, for a total transaction of $5,880,287.56. Following the sale, the insider now owns 22,833 shares in the company, valued at approximately $5,746,152.78. This trade represents a 50.58 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On Hilton Worldwide

A number of large investors have recently bought and sold shares of HLT. GHP Investment Advisors Inc. purchased a new stake in shares of Hilton Worldwide in the third quarter worth about $25,000. Noble Wealth Management PBC acquired a new position in Hilton Worldwide in the fourth quarter valued at approximately $27,000. E Fund Management Hong Kong Co. Ltd. purchased a new stake in Hilton Worldwide in the 4th quarter worth approximately $34,000. Groupama Asset Managment grew its stake in shares of Hilton Worldwide by 37.8% during the 3rd quarter. Groupama Asset Managment now owns 15,025 shares of the company’s stock worth $35,000 after purchasing an additional 4,118 shares during the period. Finally, Sierra Ocean LLC purchased a new position in shares of Hilton Worldwide during the 4th quarter valued at approximately $36,000. Hedge funds and other institutional investors own 95.90% of the company’s stock.

About Hilton Worldwide

Hilton Worldwide Holdings Inc, a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations.