Hilton Hotels Stock Falls After Dismal Q1 Report

Hotel operator Hilton Hotels Corporation (NYSE: HLTentered the earnings confessional this morning, reporting first-quarter earnings of 2 cents on revenue of $874 million -- both well below analyst forecasts. Though the company reported that 97% of its hotels were opened at of the end of April, it wasn't enough to offset the effects of pandemic-related travel restrictions. At last check, HLT was seen down 0.4% to trade at $127.68. 

Hilton Hotels HLT stock

Today's negative price action has Hilton stock pacing for its fourth-consecutive loss, with a chance to close below the $127 level for the first time since April 22. The 60-day moving average, which has caught multiple pullbacks since early February, is still in place as a layer of support, but the pressure just emerged at the 10-day trendline. Year-to-date, Hilton Hotels stock is still holding onto a 14.6% lead.

Meanwhile, the options pits have been leaning bullish. The security sports a 10-day call/put volume ratio of 1.84 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 75% of readings in its annual range. This suggests a relatively heavier-than-usual appetite for calls of late.

Now that earnings are in the rearview, it looks like the perfect time to enter on HLT with options amid a volatility crush. The security's Schaeffer's Volatility Index (SVI) of 35% sits in the low 15th percentile of all other annual readings, meaning the stock sports attractively priced premiums at the moment.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.