Huazhu Group Limited (NASDAQ: HTHT) Seen Running Too Hot, Let’s Look At This More Closely


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Huazhu Group Limited (NASDAQ:HTHT). The institutional investor has increased its shareholding in the Consumer Cyclical company by 36.92% to 4.8 million shares with purchase of 1.3 million shares. This fresh investment now brings its stake to 1.62% valued currently at $164.91 million. In addition, Wellington Management Co. LLP raised its holdings by 4.45 million to 4.64 million shares.

    With over 1.8 million Huazhu Group Limited (HTHT) shares trading Tuesday and a closing price of $45.36 on the day, the dollar volume was approximately $81.68 million. The shares have shown a positive weekly performance of 7.56% and its price on 09/01/20 gained nearly 1.41%. Currently, there are 286.01M common shares owned by the public and among those 140.45M 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 HTHT have a consensus price objective of $272.49. The analysts have set the share’s price value over the next 12 months at a high of $335.27 and a low of $228.98 should the stock experience a downside. Incidentally, analysts’ outlook for the Huazhu Group Limited stock is 2.20 for the next 12 months. The average price target is -18.99% below its last price level and a downside to the estimated low will see the stock gain 80.19% over that period. But an upside of 86.47% will see the stock hit the forecast high price target while mean target price for the stock is $268.32.

    The top 3 mutual fund holders in Huazhu Group Limited are Invesco Oppenheimer Developing Ma, John Hancock III – International, and Schroder ISF – Asian Opportunitie. Invesco Oppenheimer Developing Ma owns 31.79 million shares of the company’s stock, all valued at over $1.09 billion. Schroder ISF – Asian Opportunitie now owns shares totaling to 1.01% of the shares outstanding.

    Shares of Huazhu Group Limited (NASDAQ: HTHT) opened at $45.02, up $0.29 from a prior closing price of $44.73. However, the script later closed the day at $45.36, up 1.41%. The company’s stock has a 5-day price change of 7.56% and 16.10% over the past three months. HTHT shares are trading 13.20% year to date (YTD), with the 12-month market performance up to 41.62% higher. It has a 12-month low price of $25.01 and touched a high of $45.63 over the same period. Currently, 1.8 million shares have been traded, compared to an average intraday trading volume of 2.12 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 14.30%, 22.54%, and 30.15% respectively.

    Institutional ownership of Huazhu Group Limited (NASDAQ: HTHT) shares accounts for 48.30% of the company’s 286.01M shares outstanding. Mutual fund holders own 19.85%, while other institutional holders and individual stakeholders account for 26.79% and — respectively.

    It has a market capitalization of $12.96B and a beta (3y monthly) value of 1.76. The earnings-per-share (ttm) stands at -$0.32. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.14% over the week and 3.27% over the month.

    Analysts forecast that Huazhu Group Limited (HTHT) will achieve an EPS of -$0.19 for the current quarter, $0.14 for the next quarter and $1.24 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.23 while analysts give the company a high EPS estimate of -$0.15. Comparatively, EPS for the current quarter was $1.66 a year ago. Earnings per share for the fiscal year are expected to increase by 146.50%, and 367.40% over the next financial year. EPS should shrink at an annualized rate of 5.01% over the next five years, compared to 80.50% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Huazhu Group Limited (HTHT) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 4 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the HTHT, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on August 24, 2020, with the firm’s price target at $48.50. BofA Securities coverage for the Huazhu Group Limited (HTHT) stock in a research note released on July 01, 2020 offered a Neutral rating with a price target of. CLSA was of a view on April 24, 2020 that the stock is Outperform, while Credit Suisse gave the stock Outperform rating on April 21, 2020, issuing a price target of. Goldman on their part issued Buy rating on March 30, 2020.


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