Apollo Principal Holdings A GP Ltd, a significant stakeholder in Hilton Grand Vacations Inc . (NYSE:HGV), has sold 4 million shares of the company's common stock. The transaction, which took place on November 25, 2024, was executed at a price of $42.10 per share, amounting to a total value of $168.4 million. Following this sale, Apollo retains ownership of 26,295,825 shares in Hilton Grand Vacations. This move is part of Apollo's ongoing investment strategy, as detailed in their recent SEC filing.
In other recent news, Hilton Grand Vacations Inc. reported lower than expected third-quarter earnings, posting an 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. Amid these developments, Hilton Grand Vacations maintained its full-year 2024 guidance for adjusted EBITDA, projecting between $1.075 billion to $1.135 billion.
The company also made significant strides in financial flexibility by expanding its credit facility from $750 million to $850 million. This strategic move involves various financial institutions, including Bank of America, Deutsche Bank AG (NYSE:DB), Wells Fargo (NYSE:WFC) Bank, and Barclays (LON:BARC) Bank PLC.
Hilton Grand Vacations has also completed a substantial securitization of timeshare loans, amounting to $500 million, marking the company's largest transaction to date. Furthermore, following the recent acquisition of Bluegreen Vacations (NYSE:BXG) Holding Corporation, Hilton Grand Vacations has amended its license agreement to facilitate the integration of Bluegreen into its operations.
These recent developments reflect Hilton Grand Vacations' ongoing 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 present a mixed picture. According to InvestingPro data, HGV's market capitalization stands at $4.1 billion, with the stock trading at a price-to-earnings ratio of 45.66, suggesting a relatively high valuation compared to industry peers.
Despite the large share sale by Apollo, HGV has shown strong revenue growth, with a 27.69% increase in quarterly revenue as of Q3 2024. This growth is complemented by a solid EBITDA of $984 million for the last twelve months, indicating robust operational performance.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This action may help offset the potential market impact of Apollo's share sale. Additionally, analysts anticipate sales growth in the current year, aligning with the company's recent revenue performance.
It's worth noting that HGV's stock price movements are quite volatile, which investors should consider in light of Apollo's significant divestment. The company's one-year price total return of 20.05% as of the latest data suggests that despite this volatility, HGV has delivered solid returns for shareholders over the past year.
For readers interested in a deeper analysis, InvestingPro offers 8 additional tips for HGV, providing a more comprehensive view of the company's financial health and market position.
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