&Xponance Inc. Raises Stake in Vail Resorts, Inc.
&Xponance Inc., an American investment firm, recently increased its stake in Vail Resorts, Inc. by 15.1% during the fourth quarter of last year according to the most recent disclosure with the Securities and Exchange Commission. The company currently owns 5,257 shares of Vail Resorts’ stock which amounts to $1,253,000 at the end of the quarter.
Vail Resorts (NYSE:MTN) announced its quarterly earnings results on March 13th this year where it reported $5.16 earnings per share (EPS) for the quarter. However, these numbers fell short of analysts’ consensus estimates of $6.19 with a gap of ($1.03). Vail Resorts saw a revenue of $1.10 billion during the same period as compared to an estimated $1.07 billion by industry experts but its net margin was up -11.88% and return on equity rose to 18.53%.
The conglomerate is best known as a holding company which operates mountain resorts or ski areas around North America and beyond, along with hotels including RockResorts and NPS concessionaire properties through their Lodging segment that also manages condominiums among other real estate ventures.
With pandemic related travel restrictions being eased gradually worldwide there has been encouraging performance from companies operating in this sector resulting in them receiving fresh investments from institutions such as &Xponance Inc.
Sell-side analysts expect that Vail Resorts will post an EPS figure of 7.63 for the current fiscal year, which puts added pressure to deliver better financial performance in coming quarters amidst global economic turmoil caused by COVID-19 pandemic.
In conclusion, &Xponance’s increasing stake is proof that investors are confident about future opportunities surrounding growth within various segments operated under Vail Resorts’ umbrella while waiting eagerly for positive operational data that suggests market share gains are achievable. Vail Resorts appear to be in a good position with the pandemic easing and travel restrictions being lifted globally.
Vail Resorts: A Mountain of Opportunity for Investors
Vail Resorts: A Mountain of Opportunity for Investors
The world of tourism has been particularly affected by the pandemic, with restrictions, bans and quotas causing significant drops in the number of visitors to popular holiday destinations. However, one company is bucking this trend: Vail Resorts. With a market capitalization of $18.05 billion and a beta of 1.21, Vail Resorts has shown remarkable resilience against even the most challenging economic conditions.
A recent report highlighted that many institutional investors and hedge funds have increased their stake in Vail Resorts due to its impressive financial performance, with Horizon Kinetics Asset Management LLC amongst those leading the way. They boosted their holdings by 19.4% during Q3 2020, indicating that they are confident about the long-term future of this unique business proposition.
Operating across three segments – mountain resorts or ski areas (the Mountain segment), lodging (which includes hotels and condominiums) and real estate – Vail Resorts offers a range of activities designed to serve both winter and summer leisure needs. Amidst governmental lockdowns worldwide, many people have found refuge in outdoor activities including skiing and hiking; thus, there is room for cautious optimism that customers will flock back as soon as restrictions ease up.
Despite being subject to unpredictable weather conditions that can affect tourism patterns throughout the year, its customer satisfaction rating remains high thanks in no small part to its commitment to quality accommodation options that cater for every budget. For example, two of its most famous holdings – Whistler Blackcomb and Park City – feature an excellent array ranging from luxury ski-in/ski-out hotels to more basic abodes perfect for budget-minded adventurers.
Furthermore, according to Bloomberg.com data analysis over March 2021,Vail Resorts declared a quarterly dividend payment reflecting enough liquidity risk management strategies it had kept up comprehensively during COVID-19 period. At present times when income assets’ yields hardly cross mid-single figures, its annualized dividend yield of 3.51% signifies its strength as an investment decision.
It’s not all plain sailing, though. The global pandemic has caused Vail Resorts to slow the pace of its expansion plans, and several research firms have lowered their rating on the stock accordingly. However, according to Bloomberg.com data analysis over March 2021, with one buy rating and five holds in the basket, Vail Resorts apparently presents overall positive feedback while having a consensus price target of $261.11.
In conclusion, for investors looking at long-term investments that can weather uncertainty and volatility, Vail Resorts remains an attractive proposition that offers robust returns and high-quality accommodation options across four countries – Canada, US, Australia and Japan – aligned with future growth potential opportunities targeting specific clientele segments from North America to China.
