Wyndham Hotels & Resorts Inc. (NYSE: WH): Stock That Needs Special Handling


The Vanguard Group, Inc. recently announced the acquisition of new stake in Wyndham Hotels & Resorts Inc. (NYSE:WH). The institutional investor has increased its shareholding in the Consumer Cyclical company by 2.65% to 9.32 million shares with purchase of 0.24 million shares. This fresh investment now brings its stake to 10.01% valued currently at $397.12 million. In addition, Long Pond Capital LP raised its holdings by 3.88 million to 5.07 million shares. And Capital Research & Management Co. has lifted its position by 35.52% or 1.15 million shares – to 4.37 million shares.

With over 0.58 million Wyndham Hotels & Resorts Inc. (WH) shares trading Friday and a closing price of $46.51 on the day, the dollar volume was approximately $26.8 million. The shares have shown a positive weekly performance of 2.74% and its price on 07/24/20 gained nearly 1.75%. Currently, there are 93.70M common shares owned by the public and among those 91.34M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for WH have a consensus price objective of $56.00. The analysts have set the share’s price value over the next 12 months at a high of $61.00 and a low of $52.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Wyndham Hotels & Resorts Inc. stock is 1.60 for the next 12 months. The average price target is 15.59% above its last price level and an upside to the estimated low will see the stock gain 10.56% over that period. But an upside of 23.75% will see the stock hit the forecast high price target while mean target price for the stock is $55.00.

Insiders at the company have transacted a total of 111 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 80 of these insider trades were purchases, accounting for 366,386 shares. Insider sales of the common stock occurred on 31 occasions, with total insider shares sold totaling 297,031 shares.

The top 3 mutual fund holders in Wyndham Hotels & Resorts Inc. are American Funds Small Cap World Fu, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. American Funds Small Cap World Fu owns 3.18 million shares of the company’s stock, all valued at over $135.66 million. The company bought an additional 91882.0 shares recently to bring their total holdings to about 3.42% of the shares outstanding. Vanguard Total Stock Market Index sold 62615.0 shares to see its total holdings shrink to 2.67 million shares valued at over $113.69 million and representing 2.87% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.68% of the shares outstanding.

Shares of Wyndham Hotels & Resorts Inc. (NYSE: WH) opened at $46.08, up $0.37 from a prior closing price of $45.71. However, the script later closed the day at $46.51, up 1.75%. The company’s stock has a 5-day price change of 2.74% and 25.91% over the past three months. WH shares are trading -25.95% year to date (YTD), with the 12-month market performance down to -18.02% lower. It has a 12-month low price of $14.50 and touched a high of $63.66 over the same period. Currently, 0.58 million shares have been traded, compared to an average intraday trading volume of 1.15 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.87%, 2.16%, and -4.43% respectively.

Institutional ownership of Wyndham Hotels & Resorts Inc. (NYSE: WH) shares accounts for 97.90% of the company’s 93.70M shares outstanding. Mutual fund holders own 47.71%, while other institutional holders and individual stakeholders account for 48.24% and 2.13% respectively.

It has a market capitalization of $4.39B. The stock’s trailing 12-month PE ratio is 28.33, while the earnings-per-share (ttm) stands at $1.64. The company has a PEG of 20.23 and a Quick Ratio of 2.80 with the debt-to-equity ratio at 2.56. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.37% over the week and 4.02% over the month.

Analysts forecast that Wyndham Hotels & Resorts Inc. (WH) will achieve an EPS of -$0.05 for the current quarter, $0.38 for the next quarter and $2.88 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.14 while analysts give the company a high EPS estimate of $0.14. Comparatively, EPS for the current quarter was $0.84 a year ago. Earnings per share for the fiscal year are expected to increase by 2.70%, and 114.37% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Wyndham Hotels & Resorts Inc. (WH) as a “Strong Buy” at a consensus score of 1.60. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 1 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the WH, a number of firms have released research notes about the stock. Gordon Haskett stated their Buy rating for the stock in a research note on June 26, 2020, with the firm’s price target at $55. Robert W. Baird coverage for the Wyndham Hotels & Resorts Inc. (WH) stock in a research note released on August 22, 2019 offered a Outperform rating with a price target of. Barclays was of a view on July 02, 2019 that the stock is Overweight, while BofA/Merrill gave the stock Buy rating on June 12, 2019, issuing a price target of $62. Stifel on their part issued Buy rating on December 24, 2018.


Please enter your comment!
Please enter your name here