Vail Resorts (NYSE:MTN) Shares Gap Down on Disappointing Earnings

Vail Resorts, Inc. (NYSE:MTN)’s stock price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $187.95, but opened at $180.47. Vail Resorts shares last traded at $177.51, with a volume of 177,448 shares trading hands.

The company reported ($4.67) earnings per share for the quarter, missing the consensus estimate of ($4.28) by ($0.39). The firm had revenue of $265.39 million during the quarter, compared to analysts’ expectations of $264.84 million. Vail Resorts had a net margin of 9.59% and a return on equity of 23.41%. The firm’s revenue for the quarter was down 1.6% on a year-over-year basis. During the same period in the previous year, the firm posted ($3.35) earnings per share.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. JPMorgan Chase & Co. cut shares of Vail Resorts from a “neutral” rating to an “underweight” rating and reduced their target price for the company from $217.00 to $176.00 in a report on Friday, June 7th. Morgan Stanley lifted their target price on Vail Resorts from $179.00 to $182.00 and gave the company an “equal weight” rating in a research note on Wednesday. Barclays dropped their target price on Vail Resorts from $201.00 to $161.00 and set an “underweight” rating on the stock in a report on Friday, June 7th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Vail Resorts from $218.00 to $194.00 and set a “hold” rating on the stock in a research report on Monday, September 16th. Finally, Mizuho reduced their target price on shares of Vail Resorts from $256.00 to $231.00 and set a “buy” rating for the company in a research note on Friday, June 7th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $212.50.

Hedge Funds Weigh In On Vail Resorts

Several hedge funds have recently bought and sold shares of MTN. Signaturefd LLC lifted its stake in Vail Resorts by 150.9% in the 2nd quarter. Signaturefd LLC now owns 138 shares of the company’s stock valued at $25,000 after buying an additional 83 shares in the last quarter. Quarry LP acquired a new position in shares of Vail Resorts in the fourth quarter worth $35,000. Brown Brothers Harriman & Co. lifted its position in shares of Vail Resorts by 318.8% in the second quarter. Brown Brothers Harriman & Co. now owns 201 shares of the company’s stock valued at $36,000 after acquiring an additional 153 shares in the last quarter. Canton Hathaway LLC increased its position in Vail Resorts by 66.7% during the 2nd quarter. Canton Hathaway LLC now owns 250 shares of the company’s stock worth $45,000 after purchasing an additional 100 shares in the last quarter. Finally, Triad Wealth Partners LLC acquired a new position in Vail Resorts in the 2nd quarter valued at about $51,000. 94.94% of the stock is owned by hedge funds and other institutional investors.

Vail Resorts Price Performance

The company has a market capitalization of $6.78 billion, a price-to-earnings ratio of 24.15, a PEG ratio of 2.56 and a beta of 1.14. The company has a current ratio of 1.18, a quick ratio of 1.08 and a debt-to-equity ratio of 2.04. The company’s 50 day simple moving average is $179.53 and its 200-day simple moving average is $192.26.

Vail Resorts Company Profile

Vail Resorts, Inc, through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities.