Wyndham Hotels & Resorts (NYSE:WH) Stock Falls 5.8% After Analyst Downgrade

Wyndham Hotels & Resorts (NYSE:WH) was down 5.8% during mid-day trading on Friday after Robert W. Baird lowered their price target on the stock from $96.00 to $95.00. Robert W. Baird currently has an outperform rating on the stock. Wyndham Hotels & Resorts traded as low as $70.71 and last traded at $70.7060. 403,877 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 1,322,817 shares. The stock had previously closed at $75.07.

A number of other research analysts have also weighed in on the stock. JPMorgan Chase & Co. decreased their price target on shares of Wyndham Hotels & Resorts from $100.00 to $97.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Morgan Stanley boosted their price objective on Wyndham Hotels & Resorts from $92.00 to $97.00 and gave the stock an “overweight” rating in a research note on Thursday. Truist Financial cut their price objective on Wyndham Hotels & Resorts from $107.00 to $104.00 and set a “buy” rating for the company in a research note on Thursday, September 10th. Barclays decreased their target price on Wyndham Hotels & Resorts from $102.00 to $101.00 and set an “overweight” rating on the stock in a research report on Friday. Finally, Freedom Broker assumed coverage on Wyndham Hotels & Resorts in a research report on Wednesday, October 14th. They issued a “buy” rating and a $88.00 target price on the stock. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $94.92.

Insiders Place Their Bets

In related news, CEO Geoffrey Ballotti sold 19,414 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $72.71, for a total transaction of $1,411,591.94. Following the completion of the sale, the chief executive officer owned 549,323 shares of the company’s stock, valued at approximately $39,941,275.33. This represents a 3.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.33% of the company’s stock.

Key Headlines Impacting Wyndham Hotels & Resorts

Here are the key news stories impacting Wyndham Hotels & Resorts this week:

• Positive Sentiment: Wyndham reported third-quarter revenue of $410 million, up 7.3% year over year and slightly above estimates, while adjusted EPS of $1.43 exceeded the $1.32 consensus. The company also raised its full-year 2026 adjusted EPS outlook to $4.84–$4.92 from expectations of about $4.80. Wyndham Hotels & Resorts Reports Strong Third Quarter Results
• Positive Sentiment: U.S. RevPAR increased 6%, the hotel system expanded 4%, and Wyndham raised its full-year RevPAR and adjusted EBITDA outlooks. The company also returned $123 million to shareholders through share repurchases and dividends. Wyndham Reports Third-Quarter Revenue and U.S. RevPAR Growth
• Positive Sentiment: Analyst sentiment remains favorable. Stifel raised its price target to $99 and maintained a “buy” rating, while Robert W. Baird retained an “outperform” rating despite trimming its target to $95. Stifel Nicolaus Wyndham Analyst Rating
• Neutral Sentiment: Full-year revenue guidance of approximately $1.5 billion is in line with consensus, suggesting the higher EPS outlook is being driven more by margins, buybacks, or other earnings factors than by stronger top-line growth.
• Negative Sentiment: Adjusted EBITDA declined year over year, and adjusted earnings were below the prior-year quarter. International RevPAR also fell 3%, while global RevPAR growth was only 2% on a constant-currency basis, highlighting softer overseas demand. Wyndham Third-Quarter Earnings Results
• Negative Sentiment: The stock’s decline indicates that investors may be focusing on falling year-over-year profitability, international weakness, and the company’s relatively high leverage, despite the earnings beat and increased guidance.

Institutional Investors Weigh In On Wyndham Hotels & Resorts

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Wyndham Hotels & Resorts during the second quarter worth approximately $623,573,000. Dimensional Fund Advisors LP grew its holdings in Wyndham Hotels & Resorts by 2.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,371,183 shares of the company’s stock valued at $111,379,000 after buying an additional 29,422 shares in the last quarter. Findlay Park Partners LLP acquired a new stake in shares of Wyndham Hotels & Resorts in the 2nd quarter worth $100,648,000. Deprince Race & Zollo Inc. increased its stake in shares of Wyndham Hotels & Resorts by 229.3% in the 1st quarter. Deprince Race & Zollo Inc. now owns 957,559 shares of the company’s stock worth $77,783,000 after acquiring an additional 666,746 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Wyndham Hotels & Resorts in the 2nd quarter worth $56,860,000. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

Wyndham Hotels & Resorts Stock Down 5.8%

The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.99 and a current ratio of 0.99. The business has a 50 day simple moving average of $72.35 and a 200-day simple moving average of $77.82. The firm has a market capitalization of $5.25 billion, a price-to-earnings ratio of 26.05, a P/E/G ratio of 2.03 and a beta of 0.67.

Wyndham Hotels & Resorts (NYSE:WH) last announced its quarterly earnings results on Wednesday, October 21st. The company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.11. Wyndham Hotels & Resorts had a net margin of 13.97% and a return on equity of 77.85%. The firm had revenue of $410.00 million for the quarter, compared to analysts’ expectations of $408.99 million. During the same quarter in the previous year, the company posted $1.46 EPS. The company’s revenue was up 7.3% compared to the same quarter last year. On average, equities analysts expect that Wyndham Hotels & Resorts will post 4.82 EPS for the current year.

Wyndham Hotels & Resorts Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.43 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.72 dividend on an annualized basis and a yield of 2.4%. Wyndham Hotels & Resorts’s payout ratio is 63.24%.

Wyndham Hotels & Resorts declared that its Board of Directors has approved a share repurchase program on Tuesday, September 29th that permits the company to buy back $400.00 million in shares. This buyback authorization permits the company to purchase up to 7.6% of its shares through open market purchases. Share buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc is a global hotel franchising company that operates an asset-light lodging business. Rather than owning and managing most of its hotels, the company licenses its brands and provides franchisees with support in areas such as marketing, reservations, technology, training and operational standards.

Its portfolio includes a range of economy, midscale and upscale hotel brands, including Super 8, Days Inn, Ramada, La Quinta, Microtel, Baymont, Wingate, AmericInn, Wyndham, Wyndham Garden, Registry Collection Hotels and ECHO Suites Extended Stay by Wyndham.