VAC Stock Forecast & Price Target

Marriott Vacations Worldwide Corp has demonstrated a significant improvement in its development margins, which are reported at 24.7%, representing an increase of 1,000 basis points year-over-year. Following the challenges faced in 2020, the timeshare segment has shown a robust recovery, contributing positively to the company's overall revenue strength. Additionally, favorable variances in product costs and lower tax rates have further enhanced financial performance, reinforcing a constructive outlook for the company's future growth.

Marriott Vacations Worldwide Corp has experienced a notable decline in its financial performance, indicated by a 10% year-over-year decrease in revenues from its Exchange business, which suggests significant challenges within this segment. Additionally, total consolidated contract sales for the second quarter fell by 1% compared to the previous year, coupled with a 3% decrease in Vacation Package Gross (VPG), which could indicate weakening demand for its key products. Furthermore, the total active membership in the company declined by 2% to approximately 1.5 million, alongside a reduction in average revenue per member, further highlighting the potential adverse trends affecting the company's future growth prospects.