Aegis Financial Corp Purchases New Holdings in Park Hotels & Resorts Inc. $PK

Key Points

• Aegis Financial Corp acquired 1.53 million shares of Park Hotels & Resorts worth approximately $21.7 million, making PK its 14th-largest holding and representing about 0.76% of the company.
• Park Hotels & Resorts reported quarterly EPS of $0.24, matching expectations, while revenue of $680 million exceeded estimates. Revenue rose 1.2% year over year, although the company posted a negative net margin and return on equity.
• The company declared a quarterly dividend of $0.25, equivalent to a 6.3% annualized yield. Analysts remain broadly cautious, with an overall “Hold” rating and an average price target of $14.08 versus the stock’s reported $15.84 price.

Aegis Financial Corp acquired a new position in Park Hotels & Resorts Inc. (NYSE:PK - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund acquired 1,525,283 shares of the financial services provider's stock, valued at approximately $21,735,000. Park Hotels & Resorts comprises about 3.4% of Aegis Financial Corp's holdings, making the stock its 14th largest holding. Aegis Financial Corp owned about 0.76% of Park Hotels & Resorts at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of PK. Advisors Capital Management LLC purchased a new position in Park Hotels & Resorts in the 2nd quarter valued at $19,160,000. Mitsubishi UFJ Trust & Banking Corp raised its holdings in Park Hotels & Resorts by 106.9% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 191,712 shares of the financial services provider's stock valued at $2,005,000 after acquiring an additional 99,051 shares during the last quarter. Donald Smith & CO. Inc. lifted its stake in Park Hotels & Resorts by 14.2% in the 4th quarter. Donald Smith & CO. Inc. now owns 14,617,921 shares of the financial services provider's stock worth $152,903,000 after purchasing an additional 1,813,338 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Park Hotels & Resorts during the 2nd quarter worth approximately $230,000. Finally, Legal & General Group Plc boosted its holdings in shares of Park Hotels & Resorts by 15.9% during the 4th quarter. Legal & General Group Plc now owns 1,339,137 shares of the financial services provider's stock worth $14,007,000 after purchasing an additional 183,882 shares during the last quarter. 92.69% of the stock is currently owned by hedge funds and other institutional investors.

Park Hotels & Resorts Stock Performance

Shares of PK stock opened at $15.84 on Friday. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.53 and a current ratio of 1.53. The firm has a market cap of $3.19 billion, a P/E ratio of -19.08, a P/E/G ratio of 2.06 and a beta of 1.34. The firm's 50 day moving average price is $14.86 and its 200-day moving average price is $12.73. Park Hotels & Resorts Inc. has a one year low of $9.84 and a one year high of $16.20.

Park Hotels & Resorts (NYSE:PK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.24. Park Hotels & Resorts had a negative return on equity of 5.23% and a negative net margin of 6.41%.The company had revenue of $680.00 million for the quarter, compared to analyst estimates of $659.68 million. During the same quarter in the previous year, the company earned $0.64 earnings per share. The firm's quarterly revenue was up 1.2% compared to the same quarter last year. As a group, equities research analysts predict that Park Hotels & Resorts Inc. will post 1.83 EPS for the current year.

Park Hotels & Resorts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 6.3%. The ex-dividend date of this dividend is Wednesday, September 30th. Park Hotels & Resorts's payout ratio is currently -120.48%.

Analyst Upgrades and Downgrades

PK has been the subject of a number of recent research reports. Cantor Fitzgerald raised their target price on Park Hotels & Resorts from $12.00 to $15.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. Weiss Ratings raised shares of Park Hotels & Resorts from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, August 11th. Wells Fargo & Company upgraded shares of Park Hotels & Resorts to a "hold" rating in a research report on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $18.00 target price on shares of Park Hotels & Resorts in a report on Friday, August 14th. Finally, Barclays increased their price target on shares of Park Hotels & Resorts from $12.00 to $14.00 and gave the company an "equal weight" rating in a research note on Thursday. Two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Park Hotels & Resorts currently has an average rating of "Hold" and an average price target of $14.08.

About Park Hotels & Resorts

Park Hotels & Resorts Inc is a publicly traded real estate investment trust (REIT) specializing in luxury and upper-upscale hospitality properties. The company's primary business activity involves owning and leasing premier hotels and resorts across major urban and resort destinations. Through long-term management and franchise agreements with leading hotel operators, Park generates revenue from room nights, food and beverage offerings, meetings and events, and ancillary services.

Since its spin-off from Hilton Worldwide in January 2017, Park Hotels & Resorts has assembled a diversified portfolio of more than 60 properties.

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