Wyndham Hotels & Resorts Inc (WH): What Does Valuation Ratios Tell Us?

Wyndham Hotels & Resorts Inc (NYSE:WH) saw a downside of -0.28% to close Friday at $71.75 after subtracting -$0.2 on the day. The 5-day average trading volume is 751,560 shares of the company’s common stock. It has gained $75.00 in the past week and touched a new high 1 time within the past 5 days. An average of 668,690 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 744,432.

WH’s 1-month performance is -3.38% or -$1.73 on its low of $71.71 reached on 09/22/23. The company’s shares have touched a 52-week low of $58.81 and high of $81.00, with the stock’s rally to the 52-week high happening on 02/15/23. YTD, WH has achieved 0.62% or $0.44 and has reached a new high 16 times. However, the current price is down -11.42% from the 52-week high price.

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Insider Transactions

WH stock investors last saw insider trading activity on Jun 06.Rossi Nicola (Chief Accounting Officer) most recently sold 8,000 shares at $73.72 per share on Jun 06. This transaction cost the insider $589,760. Chief Marketing Officer, CHECCHIO LISA, sold 6,000 shares at a price of $76.90 on Mar 08. Then, on Dec 06, Chief Financial Officer ALLEN MICHELE sold 14,940 shares at a price of $71.34 per share. This transaction amounted to $1,065,820.

Valuation Metrics

WH stock has a beta of 1.40. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.27 while the price-to-book (PB) in the most recent quarter is 6.87, with the price to cash flow ratio at 20.85.

Wyndham Hotels & Resorts Inc’s quick ratio for the period ended June 29 was 0.99, with the current ratio over the same period at 0.99. As well, the company’s long term debt to equity for the quarter ending June 29 was 2.30, while the total debt to equity was 2.34. In terms of profitability, the gross margin trailing 12 months is 43.79%. The firm’s gross profit as reported stood at $1.39 billion against revenue of $1.5 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -31.43% to $70.0 million, while revenue of $67.0 million was 4.29% off the previous quarter. Analysts expected WH to announce $0.91 per share in earnings in its latest quarter, but it posted $0.93, representing a 2.20% surprise. EBITDA for the quarter stood at more than $141.0 million. WH stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 3.18 billion, with total debt at $2.06 billion. Shareholders hold equity totaling $84.26 million.

Let’s look briefly at Wyndham Hotels & Resorts Inc (WH) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 22 September was 31.82% to suggest the stock is trending Neutral, with historical volatility in this time period at 17.37%.

The stock’s 5-day moving average is $73.06, reflecting a -3.63% or -$2.70 change from its current price. WH is currently trading -2.62% above its 20-day SMA, +3.76% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -2.43% and SMA200 by-0.03%.

Stochastic %K and %D was 6.69% and 11.69% and the average true range (ATR) pointed at 1.29. The RSI (14) points at 37.46%, while the 14-day stochastic is at 0.72% with the period’s ATR at 1.32. The stock’s 9-day MACD Oscillator is pointing at -1.30 and -2.07 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Wyndham Hotels & Resorts Inc (NYSE: WH), Deutsche Bank launched coverage with a Buy rating. Analysts offering their rating for WH stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate WH as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 8 have offered a “buy” rating.

What is WH’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $70.00 and a high of $95.00, with their median price target at $85.00. Looking at these predictions, the average price target given by analysts is for Wyndham Hotels & Resorts Inc (WH) stock is $85.09.

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