Wyndham Worldwide (WYN) Raised to “Hold” at Zacks Investment Research

Wyndham Worldwide (NYSE:WYN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday, December 27th.

According to Zacks, “Shares of Wyndham underperformed its industry in the past six months. Global expansion exposes Wyndham to headwinds in the regions where it operates. Despite immense growth potential, a sluggish economy in Brazil, uncertainty in Africa, macroeconomic factors in Venezuela and China are likely to keep revenues under pressure. The company expects soft demand in oil-producing regions to continue to hurt RevPAR too. Meanwhile, 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. Nevertheless, Wyndham’s robust developmental pipeline, prudent acquisitions and strong loyalty program should boost growth. Still, currency movements might continue to hurt results as has been the case over the past few quarters.”

Separately, Wolfe Research raised shares of Wyndham Worldwide from an “underperform” rating to a “market perform” rating in a research note on Thursday, December 21st. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $110.14.

Shares of Wyndham Worldwide (WYN) opened at $117.93 on Wednesday. The firm has a market cap of $11,950.00, a price-to-earnings ratio of 21.17 and a beta of 1.36. Wyndham Worldwide has a 12 month low of $75.80 and a 12 month high of $117.96. The company has a quick ratio of 0.81, a current ratio of 0.96 and a debt-to-equity ratio of 9.00.

Wyndham Worldwide (NYSE:WYN) last posted its quarterly earnings results on Wednesday, October 25th. The company reported $2.03 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.02 by $0.01. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.67 billion. Wyndham Worldwide had a net margin of 10.20% and a return on equity of 97.31%. The firm’s revenue was up 3.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.89 EPS. sell-side analysts expect that Wyndham Worldwide will post 6.04 EPS for the current year.

Wyndham Worldwide declared that its Board of Directors has initiated a stock buyback program on Wednesday, October 25th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

In other Wyndham Worldwide news, Director George Herrera sold 311 shares of the stock in a transaction dated Tuesday, October 31st. The shares were sold at an average price of $105.82, for a total transaction of $32,910.02. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Scott G. Mclester sold 15,381 shares of the firm’s stock in a transaction dated Monday, December 18th. The shares were sold at an average price of $115.00, for a total transaction of $1,768,815.00. Following the completion of the sale, the vice president now owns 8,917 shares in the company, valued at $1,025,455. The disclosure for this sale can be found here. 2.39% of the stock is owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in shares of Wyndham Worldwide by 0.5% in the 2nd quarter. Vanguard Group Inc. now owns 10,449,345 shares of the company’s stock valued at $1,049,218,000 after buying an additional 50,307 shares in the last quarter. FMR LLC boosted its holdings in shares of Wyndham Worldwide by 88.5% in the 2nd quarter. FMR LLC now owns 9,483,756 shares of the company’s stock valued at $952,263,000 after buying an additional 4,451,772 shares in the last quarter. BlackRock Inc. boosted its stake in Wyndham Worldwide by 1.3% in the 2nd quarter. BlackRock Inc. now owns 6,586,534 shares of the company’s stock worth $661,354,000 after purchasing an additional 83,501 shares in the last quarter. LSV Asset Management boosted its stake in Wyndham Worldwide by 1.7% in the 2nd quarter. LSV Asset Management now owns 3,201,503 shares of the company’s stock worth $321,462,000 after purchasing an additional 54,923 shares in the last quarter. Finally, Iridian Asset Management LLC CT boosted its stake in Wyndham Worldwide by 40.6% in the 3rd quarter. Iridian Asset Management LLC CT now owns 2,188,588 shares of the company’s stock worth $230,699,000 after purchasing an additional 631,648 shares in the last quarter. Institutional investors and hedge funds own 94.09% of the company’s stock.

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About Wyndham Worldwide

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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