Hilton Grand Vacations (HGV) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Fraudulent and illegal activities in the timeshare industry, particularly those involving unlawful third-party VOI resale or deceptive vacation package sales, pose a significant risk to Hilton Grand Vacations. These schemes, which have notably targeted older Americans, have been highlighted by the FBI, emphasizing their potential to cause substantial financial losses for timeshare owners. Such activities not only threaten the reputation and brand value of Hilton Grand Vacations but also risk deterring consumers from purchasing their timeshare products, thereby negatively impacting their revenue and operational results. The company’s ability to collect management fees may also be compromised, further exacerbating the financial implications of these fraudulent activities.
Overall, Wall Street has a Moderate Buy consensus rating on HGV stock based on 4 Buys, 1 Sell and 1 Hold.
To learn more about Hilton Grand Vacations’ risk factors, click here.