Why Marriott Vacations share could remain between $160 and $170 after Q4 results

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on Feb 23, 2022
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  • Marriott Vacations announced 15% quarterly growth in dividends to $0.62.
  • It also announced a share repurchase program of $300 million.
  • Share price expected to remain within the $160 to $170 range.

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Marriott Vacations Worldwide Corporation (NYSE:VAC) will release Q4 and annual results for 2021 on February 24, 2022. One day ahead of the earnings call, VAC announced a $0.62 quarterly dividend.

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The dividend increased 15% from Q3. Books closure will be on March 3, while the payment will be on March 17. Today’s announcement also included a share repurchase authorization totaling $300 million.

VAC’s cash dividend and share repurchase announcement act as guidance on what the market should expect in the earning call. The dividend is guidance to growth in earnings of the company. The continuation of the share repurchases program signals to the market that the shares are undervalued.

Marriott’s share price shows moving averages convergence at $162 – $163

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Source – TradingView

The company’s share price received a boost from today’s announcement. The market value is at $166.73, which is higher than the moving averages which converged between $162 and $163 for the 50, 20, and 10-day moving averages.

The convergence in moving averages has been sustained since the beginning of the year, indicating that the market has been less reactive to market trends and news coming from the market.

Trend analysis shows the company trading below the centerline. This is a pointer to the possibility of share prices breaking away from the upward trend that has been recorded since April 2020.

The company is likely to establish a flat trend with prices between $160 and $170 in the foreseeable future. It is worth noting that the market already reflects the impact of today’s news on the share price. The release of annual results tomorrow may not significantly affect the share price.

Summary

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Marriott Vacations Worldwide announced a 15% quarterly growth in dividends to $0.62. The company also announced continuation with its share repurchase program. Share price expected to remain within the $160 to $170 range considering convergence in moving averages.

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