Please ensure Javascript is enabled for purposes of website accessibility

Why Hilton Grand Vacations' Shares Popped 12.4% Today

By Travis Hoium – Updated Aug 20, 2019 at 12:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Could a buyout be on the horizon?

What happened 

Shares of Hilton Grand Vacations (HGV 2.91%) jumped as much as 12.4% after rumors swirled about a potential buyout. At 12:45 p.m. EDT, the stock remained up 10.4% on the day. 

So what

According to The New York Post, Apollo Global, one of the world's largest private equity firms, is interested in buying Hilton Grand Vacations to pair it with the previously acquired timeshare company Diamond Resorts. Hilton Grand Vacations is reportedly being given the option of a full buyout, a merger to remain public, or a tender offer from Apollo. 

A seated woman wearing a broad-brimmed hat, with her left hand on the top of her hat and her right hand up in the air.

Image source: Getty Images.

Since this is just speculation at the moment, we have no idea what the terms would be, but the $36 price per share has been rumored. That would still be a solid premium to the $31-per-share range at which the stock is trading as I write. 

Now what

Speculating on buyouts is never a great bet for retail investors because a deal can go south and a stock can drop quickly. That's why I wouldn't dive into the stock today. But investors who own it can keep an eye out for an Apollo buyout moving forward and worry less about buying at a premium. Ultimately, the investment thesis hasn't changed at all today -- there's just a premium on the stock for a buyout that hasn't yet happened. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Hilton Grand Vacations Inc. Stock Quote
Hilton Grand Vacations Inc.
HGV
$34.63 (2.91%) $0.98

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.