Vail Resorts (MTN) Downgraded by Zacks Investment Research to Sell

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Zacks Investment Research lowered shares of Vail Resorts (NYSE:MTN) from a hold rating to a sell rating in a research report released on Monday morning, Zacks.com reports. The brokerage currently has $182.00 target price on the stock.

According to Zacks, “Shares of Vail Resorts have underperformed the industry in the past year. Increased expenses related to operations, acquisitions and pertinent weather-related woes continue to hurt profitability. Moreover, intense competition from various modes of entertainment provider is concerning. Also, in order to finance its acquisitions, the company increased its borrowings. It borrowed $70 million for financing the Stevens Pass acquisition and an additional $195.6 million to fund the Triple Peaks acquisition. However, a full-proof business model and wide range of guest-centric offerings position the company for growth. Vail Resorts has a season pass program, which is likely to drive revenues. Further, increased focus on mergers and acquisitions along with effective marketing techniques bode well.”

Other research analysts have also issued reports about the company. Deutsche Bank reaffirmed a buy rating and issued a $267.00 price objective on shares of Vail Resorts in a report on Monday, April 29th. SunTrust Banks initiated coverage on Vail Resorts in a report on Friday, April 26th. They issued a buy rating and a $242.00 price objective on the stock. Stifel Nicolaus upped their price objective on Vail Resorts from $215.00 to $219.00 and gave the company a hold rating in a report on Monday, March 11th. Jefferies Financial Group initiated coverage on Vail Resorts in a report on Monday, April 22nd. They issued a hold rating and a $233.00 price objective on the stock. Finally, Macquarie lowered Vail Resorts from an outperform rating to a neutral rating and set a $221.62 price objective on the stock. in a report on Thursday, April 4th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $246.96.

Shares of NYSE MTN opened at $214.41 on Monday. The company has a current ratio of 0.55, a quick ratio of 0.41 and a debt-to-equity ratio of 0.80. Vail Resorts has a one year low of $179.60 and a one year high of $302.76. The firm has a market capitalization of $8.62 billion, a price-to-earnings ratio of 34.09, a PEG ratio of 2.05 and a beta of 0.66.

Vail Resorts (NYSE:MTN) last issued its quarterly earnings data on Friday, March 8th. The company reported $5.02 EPS for the quarter, beating analysts’ consensus estimates of $4.79 by $0.23. Vail Resorts had a return on equity of 15.93% and a net margin of 12.76%. The firm had revenue of $849.60 million for the quarter, compared to analyst estimates of $841.76 million. During the same period in the prior year, the firm posted $4.12 EPS. The company’s revenue for the quarter was up 15.7% on a year-over-year basis. Equities analysts forecast that Vail Resorts will post 6.98 earnings per share for the current fiscal year.

In other news, EVP David T. Shapiro sold 5,312 shares of the company’s stock in a transaction on Thursday, March 14th. The stock was sold at an average price of $213.51, for a total transaction of $1,134,165.12. Following the completion of the sale, the executive vice president now directly owns 4,573 shares in the company, valued at approximately $976,381.23. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Peter A. Vaughn sold 1,000 shares of the company’s stock in a transaction on Monday, March 18th. The shares were sold at an average price of $216.47, for a total value of $216,470.00. Following the sale, the director now owns 8,372 shares of the company’s stock, valued at $1,812,286.84. The disclosure for this sale can be found here. Corporate insiders own 2.90% of the company’s stock.

Large investors have recently added to or reduced their stakes in the company. Pinnacle Financial Partners Inc. bought a new stake in shares of Vail Resorts during the 1st quarter valued at $28,000. Exane Derivatives lifted its position in shares of Vail Resorts by 3,080.0% during the 4th quarter. Exane Derivatives now owns 159 shares of the company’s stock worth $34,000 after buying an additional 154 shares during the last quarter. Westside Investment Management Inc. lifted its position in shares of Vail Resorts by 700.0% during the 4th quarter. Westside Investment Management Inc. now owns 200 shares of the company’s stock worth $42,000 after buying an additional 175 shares during the last quarter. Oakworth Capital Inc. lifted its position in shares of Vail Resorts by 100.0% during the 4th quarter. Oakworth Capital Inc. now owns 200 shares of the company’s stock worth $42,000 after buying an additional 100 shares during the last quarter. Finally, Private Ocean LLC bought a new stake in shares of Vail Resorts during the 1st quarter worth $43,000. Hedge funds and other institutional investors own 98.13% of the company’s stock.

Vail Resorts Company Profile

Vail Resorts, Inc, through its subsidiaries, operates mountain resorts and urban ski areas in the United States. The company operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 11 mountain resorts, including Vail Mountain, Breckenridge Ski, Keystone, and Beaver Creek resorts in Colorado; Park City resort in Utah; Heavenly Mountain, Northstar, and Kirkwood Mountain resorts in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in Canada; Stowe Mountain resort in Vermont; and Perisher in Australia, as well as 3 urban ski areas, such as Wilmot Mountain in Wisconsin, Afton Alps in Minnesota, and Mount Brighton in Michigan.

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