Hilton Grand Vacations Sees $168.4m Stock Sale By Apollo By Investing.com
Apollo Principal Holdings A GP Ltd is an excellent host Hilton Grand Vacations Inc . (NYSE: ), has sold 4 million shares of the company’s common stock. The transaction, which takes place on November 25, 2024, is carried out at a price of $ 42.10 per share, which reaches a total value of $ 168.4 million. Following this sale, Apollo retains ownership of 26,295,825 shares of Hilton Grand Vacations. The move is part of Apollo’s ongoing investment strategy, as outlined in their latest SEC filing.
In other recent news, Hilton Grand Vacations Inc. reported lower-than-expected revenue for the third quarter, posting adjusted earnings per share of $0.67, missing the consensus estimate of $0.76. However, the company’s revenue slightly exceeded expectations, reaching $1.31 billion. With these developments, Hilton Grand Vacations maintained its 2024 guidance for adjusted EBITDA, ranging from $1.075 billion to $1.135 billion.
The company also took a big step in changing its financial situation by increasing its credit facility from $750 million to $850 million. This strategic move involves various financial institutions, including Bank of America, Deutsche Bank AG (NYSE:), Wells Fargo (NYSE:) Bank, and Barclays (LON:) Bank PLC.
Hilton Grand Vacations also completed a major term loan transaction, totaling $500 million, marking the company’s largest transaction to date. In addition, following the recent discovery of Bluegreen Holidays (NYSE:) Holding Corporation, Hilton Grand Vacations has amended its license agreement to facilitate the integration of Bluegreen into its operations.
These latest developments reflect Hilton Grand Vacations’ continued efforts to expand its portfolio and enhance its presence in the hospitality industry.
InvestingPro Insights
Apollo Principal Holdings A GP Ltd’s recent sale of 4 million shares in Hilton Grand Vacations Inc. (NYSE:HGV) comes at a time when the company’s financial metrics and market performance paint a mixed picture. According to InvestingPro data, HGV’s market capitalization stands at $4.1 billion, and the stock trades at a price-to-earnings ratio of 45.66, suggesting a high valuation compared to industry peers.
Despite the sale of a large share by Apollo, HGV showed strong revenue growth, with an increase of 27.69% in quarterly revenue from Q3 2024. This growth is accompanied by a strong EBITDA of 984 million dollars in the last twelve months, which shows the performance strong performance.
InvestingPro Tips highlights that management has been buying shares aggressively, which could be seen as a vote of confidence in the company’s future. This action could help offset the potential market impact of the sale of Apollo shares. Additionally, analysts expect sales growth this year, consistent with the company’s recent revenue performance.
It is worth noting that HGV stock price movements are volatile, which investors should consider due to Apollo’s significant downgrade. The company’s one-year price gain of 20.05% as of recent data suggests that despite these fluctuations, HGV has delivered solid returns to shareholders over the past year.
For readers interested in in-depth analysis, InvestingPro offers 8 additional HGV tips, which provide a comprehensive overview of the company’s financial health and market conditions.
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