Wyndham Hotels & Resorts (NYSE: WH) has revised its earnings guidance for fiscal year 2026, projecting earnings per share (EPS) between 4.620 and 4.800. This update, shared on Wednesday, contrasts with the consensus estimate of 4.940 EPS among analysts. The company has not yet disclosed specific revenue guidance for the upcoming fiscal period.
In trading on Wednesday, Wyndham’s shares saw a slight increase, rising by $0.15 to reach $80.48. A total of 2,566,872 shares changed hands, significantly surpassing the average trading volume of 1,390,612. The company’s current market capitalization stands at approximately $6.08 billion. With a price-to-earnings ratio of 18.50 and a price-to-earnings-growth ratio of 2.16, Wyndham’s stock has shown a beta of 0.76, indicating less volatility compared to the market.
Wyndham has experienced a fluctuation in stock prices over the past year, with a low of $69.21 and a high of $113.07. The 50-day moving average is $77.33, while the 200-day moving average is $78.88. The company maintains a debt-to-equity ratio of 4.43, along with both quick and current ratios of 1.16.
In its most recent quarterly earnings report released on February 18, 2024, Wyndham reported an EPS of (0.80), falling short of the consensus estimate of 0.90 by $1.70. The firm generated revenue of $334.00 million for the quarter, compared to expectations of $337.63 million. Despite these figures, Wyndham Hotels & Resorts posted a return on equity of 61.12% and a net margin of 23.54%.
Insider Trading Activity
Recent insider trading has raised attention among investors. On January 15, 2024, CEO Geoffrey A. Ballotti sold 55,124 shares at an average price of $79.27, totaling approximately $4.37 million. Following this sale, he retains 490,028 shares in the company, valued at around $38.84 million. This transaction reflects a 10.11% reduction in his holdings.
In addition, insider Scott R. Strickland sold 28,134 shares on December 9, 2023, at an average price of $71.11, amounting to about $2.00 million. Post-transaction, Strickland holds 40,363 shares, valued at approximately $2.87 million, marking a 41.07% decline in ownership. Over the last quarter, insiders have collectively sold 84,227 shares valued at around $6.44 million, with company insiders currently owning 2.46% of the firm’s stock.
Institutional Investment Trends
Wyndham Hotels & Resorts has attracted significant interest from institutional investors. Recent transactions indicate a trend towards increased stakes in the company. For instance, HighTower Advisors LLC raised its holdings by 24.1% in the fourth quarter, now owning 10,278 shares valued at $777,000.
Several other firms have also added to their positions. Cinctive Capital Management LP acquired a new stake worth approximately $735,000, while Campbell & CO Investment Adviser LLC purchased shares valued at around $719,000. Additionally, Deutsche Bank AG increased its position by 6.4%, owning 8,237 shares valued at $622,000 after acquiring more shares during the last quarter.
Overall, institutional investors and hedge funds currently hold a substantial 93.46% of Wyndham’s stock, indicating robust confidence in the company’s future prospects.
About Wyndham Hotels & Resorts: Established in 2018 through the spin-off from Wyndham Worldwide, Wyndham Hotels & Resorts is a leading global hospitality company. It specializes in hotel franchising and management, focusing on creating a diverse portfolio that caters to both business and leisure travelers. The company’s brands span economy to upper-midscale segments, featuring names such as Wyndham, Ramada, Days Inn, Super 8, Microtel Inn & Suites, and La Quinta by Wyndham.
