Shares of Wyndham Hotels & Resorts (NYSE: WH) are currently receiving a favorable average recommendation of “Moderate Buy” from analysts. According to MarketBeat.com, fourteen ratings firms are covering the company, with six issuing a hold rating and eight recommending a buy. The average target price for the stock stands at $91.88 for the next twelve months, reflecting a positive outlook from the investment community.
Several notable financial institutions have weighed in on the stock’s performance. The Goldman Sachs Group has reaffirmed a “neutral” rating and adjusted its price target to $76.00, down from a previous estimate of $88.00. This revision was made in a research report published on December 15, 2023. Meanwhile, Truist Financial set a more optimistic target of $98.00 on October 24, 2023. Morgan Stanley has also provided a robust outlook, establishing a price objective of $91.00 and assigning an “overweight” rating as of October 22, 2023.
In a contrasting move, Robert W. Baird decreased its target price from $93.00 to $89.00 while maintaining an “outperform” rating. Additionally, Mizuho initiated coverage with a “neutral” rating and a target of $71.00 as of December 3, 2023.
Institutional investors have also been active in modifying their holdings of Wyndham’s stock. Notably, Capricorn Fund Managers Ltd acquired a new stake valued at approximately $1.13 million during the second quarter. Other large investors include Ascent Group LLC, which invested $1.42 million, and Aristeia Capital L.L.C. with a stake of $366,000. Strs Ohio also entered the fray, investing $1.72 million in the first quarter. Notably, Voya Investment Management LLC raised its holdings by 85.6%, now owning 21,038 shares worth around $1.9 million. Institutional investors collectively own 93.46% of the company’s stock.
Stock Performance and Financial Results
As of October 22, 2023, shares of Wyndham Hotels opened at $81.08. The company reported a current ratio and quick ratio of 1.16, alongside a debt-to-equity ratio of 4.43. Wyndham has a market capitalization of $6.13 billion, with a price-to-earnings (P/E) ratio of 18.64 and a beta of 0.76. The stock has shown volatility over the past year, with a 52-week low of $69.21 and a high of $113.07.
In its most recent quarterly earnings report, released on October 22, 2023, the company announced earnings per share (EPS) of $1.46, surpassing analyst projections of $1.42 by $0.04. Despite this positive news, revenue for the quarter was $382 million, which fell short of estimates of $406.29 million. Compared to the same period last year, Wyndham’s revenue decreased by 3.5%, and the company reported a return on equity of 61.12% with a net margin of 23.54%. For the fiscal year 2025, the company has projected EPS guidance between $4.48 and $4.62.
Dividend Announcement and Investor Outlook
Wyndham Hotels & Resorts has also declared a quarterly dividend of $0.41 per share, which was paid on December 30, 2023. Shareholders of record on December 15, 2023 received this dividend, resulting in an annualized dividend of $1.64, which corresponds to a yield of 2.0%. The company’s dividend payout ratio currently stands at 37.70%.
Founded in 2018 through the spin-off of Wyndham Hotel Group from Wyndham Worldwide, Wyndham Hotels & Resorts, Inc. specializes in hotel franchising and management. The company’s business model relies on franchising agreements, allowing third-party hotel owners to operate under its diverse portfolio of brands, which includes well-known names such as Wyndham, Ramada, and La Quinta by Wyndham. With a focus on serving both business and leisure travelers, Wyndham continues to be a significant player in the global hospitality industry.
