Vail Resorts (MTN) Upgraded to Hold by Zacks Investment Research
Zacks Investment Research upgraded shares of Vail Resorts (NYSE:MTN) from a sell rating to a hold rating in a research note released on Wednesday.
According to Zacks, “Shares of Vail Resorts have outperformed the industry over the past year and may continue to do so after the company reported better-than expected results in the first quarter of 2019. Total revenues in the quarter grew 15.7% year over year on the back of increased season pass sales. Total revenues were favored by growth in each segment. Also, Vail Resorts’ season pass and large ski offerings have driven incremental growth. A full-proof business model and various guest-centric offerings position the company on a growth trajectory. Further, increased focus on mergers and acquisitions, along with effective marketing techniques, bode well. However, increased expenses from operations, acquisitions and pertinent weather-related woes continue to hurt the company’s profitability. Moreover, intense competition from various modes of entertainment provider is a concern.”
MTN has been the topic of a number of other research reports. ValuEngine downgraded shares of Vail Resorts from a buy rating to a hold rating in a report on Wednesday, January 2nd. Stifel Nicolaus restated a hold rating on shares of Vail Resorts in a report on Friday, January 11th. KeyCorp raised their price target on shares of Vail Resorts from $210.00 to $225.00 and gave the company an overweight rating in a report on Wednesday, March 6th. Bank of America downgraded shares of Vail Resorts from a buy rating to a neutral rating in a report on Friday, January 11th. Finally, Deutsche Bank set a $297.00 price target on shares of Vail Resorts and gave the company a buy rating in a report on Saturday, December 8th. Four research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus price target of $273.13.
Vail Resorts (NYSE:MTN) last released its quarterly earnings results on Friday, March 8th. The company reported $5.02 earnings per share for the quarter, beating analysts’ consensus estimates of $4.79 by $0.23. The business had revenue of $849.60 million for the quarter, compared to the consensus estimate of $841.76 million. Vail Resorts had a net margin of 12.76% and a return on equity of 15.93%. Vail Resorts’s revenue for the quarter was up 15.7% on a year-over-year basis. During the same quarter last year, the firm earned $4.12 EPS. On average, research analysts expect that Vail Resorts will post 7.12 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 11th. Stockholders of record on Wednesday, March 27th will be issued a dividend of $1.76 per share. This is an increase from Vail Resorts’s previous quarterly dividend of $1.47. The ex-dividend date is Tuesday, March 26th. This represents a $7.04 annualized dividend and a dividend yield of 3.29%. Vail Resorts’s payout ratio is presently 93.48%.
Several large investors have recently bought and sold shares of the company. BlackRock Inc. increased its holdings in shares of Vail Resorts by 5.3% during the 4th quarter. BlackRock Inc. now owns 2,354,160 shares of the company’s stock worth $496,306,000 after purchasing an additional 117,827 shares during the period. FMR LLC boosted its position in Vail Resorts by 8.2% in the third quarter. FMR LLC now owns 1,383,743 shares of the company’s stock valued at $379,726,000 after buying an additional 105,357 shares in the last quarter. Principal Financial Group Inc. boosted its position in Vail Resorts by 12.4% in the fourth quarter. Principal Financial Group Inc. now owns 1,033,345 shares of the company’s stock valued at $217,850,000 after buying an additional 114,407 shares in the last quarter. Jennison Associates LLC boosted its position in Vail Resorts by 19.9% in the fourth quarter. Jennison Associates LLC now owns 561,557 shares of the company’s stock valued at $118,387,000 after buying an additional 93,183 shares in the last quarter. Finally, Diamond Hill Capital Management Inc. boosted its position in Vail Resorts by 44.7% in the fourth quarter. Diamond Hill Capital Management Inc. now owns 454,399 shares of the company’s stock valued at $95,796,000 after buying an additional 140,396 shares in the last quarter. Institutional investors own 98.24% of the company’s stock.
Vail Resorts Company Profile
Vail Resorts, Inc, through its subsidiaries, operates mountain resorts and urban ski areas in the United States. The company operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 11 mountain resorts, including Vail Mountain, Breckenridge Ski, Keystone, and Beaver Creek resorts in Colorado; Park City resort in Utah; Heavenly Mountain, Northstar, and Kirkwood Mountain resorts in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in Canada; Stowe Mountain resort in Vermont; and Perisher in Australia, as well as 3 urban ski areas, such as Wilmot Mountain in Wisconsin, Afton Alps in Minnesota, and Mount Brighton in Michigan.
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