Donald Smith & CO. Inc. Acquires 2,377,195 Shares of Park Hotels & Resorts Inc. (NYSE:PK)

Key Points

• Donald Smith & CO. Inc. increased its stake in Park Hotels & Resorts by 25.8%, acquiring an additional 2,377,195 shares, bringing its total ownership to 11,577,320 shares.
• Park Hotels & Resorts has a dividend yield of 9.8%, with a quarterly dividend of $0.25 declared, to be paid on October 15th.
• The stock is currently rated as an average of "Hold" by analysts, with a price target of approximately $12.11.

Donald Smith & CO. Inc. grew its stake in shares of Park Hotels & Resorts Inc. (NYSE:PK - Free Report) by 25.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 11,577,320 shares of the financial services provider's stock after buying an additional 2,377,195 shares during the period. Park Hotels & Resorts makes up 3.0% of Donald Smith & CO. Inc.'s portfolio, making the stock its 13th biggest position. Donald Smith & CO. Inc. owned approximately 5.79% of Park Hotels & Resorts worth $123,646,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. UMB Bank n.a. raised its position in shares of Park Hotels & Resorts by 140.9% during the first quarter. UMB Bank n.a. now owns 2,385 shares of the financial services provider's stock worth $25,000 after purchasing an additional 1,395 shares during the period. Versant Capital Management Inc raised its position in shares of Park Hotels & Resorts by 11,039.1% during the first quarter. Versant Capital Management Inc now owns 2,562 shares of the financial services provider's stock worth $27,000 after purchasing an additional 2,539 shares during the period. Quarry LP bought a new stake in Park Hotels & Resorts in the 4th quarter valued at approximately $35,000. GF Fund Management CO. LTD. bought a new stake in Park Hotels & Resorts in the 4th quarter valued at approximately $53,000. Finally, GAMMA Investing LLC lifted its stake in Park Hotels & Resorts by 401.2% in the 1st quarter. GAMMA Investing LLC now owns 5,283 shares of the financial services provider's stock valued at $56,000 after acquiring an additional 4,229 shares in the last quarter. Institutional investors own 92.69% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. JPMorgan Chase & Co. assumed coverage on Park Hotels & Resorts in a research note on Monday, June 23rd. They issued an "underweight" rating and a $10.00 target price on the stock. Bank of America cut Park Hotels & Resorts from a "neutral" rating to an "underperform" rating and set a $11.00 target price on the stock. in a research note on Wednesday, April 30th. Truist Financial cut Park Hotels & Resorts from a "buy" rating to a "hold" rating and cut their target price for the company from $16.00 to $11.00 in a research note on Friday, May 30th. Morgan Stanley restated an "outperform" rating on shares of Park Hotels & Resorts in a research note on Tuesday, July 15th. Finally, Citigroup restated a "buy" rating on shares of Park Hotels & Resorts in a research note on Thursday, May 22nd. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, Park Hotels & Resorts presently has an average rating of "Hold" and an average price target of $12.11.

Park Hotels & Resorts Stock Performance

Shares of PK stock traded up $0.30 during trading on Wednesday, reaching $10.96. 570,563 shares of the company's stock were exchanged, compared to its average volume of 4,183,179. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 1.35. The stock has a market capitalization of $2.19 billion, a PE ratio of 40.54 and a beta of 1.80. Park Hotels & Resorts Inc. has a twelve month low of $8.27 and a twelve month high of $16.23. The firm's fifty day moving average price is $10.60 and its 200-day moving average price is $10.98.

Park Hotels & Resorts (NYSE:PK - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The financial services provider reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.07. The business had revenue of $672.00 million during the quarter, compared to the consensus estimate of $672.37 million. Park Hotels & Resorts had a return on equity of 0.76% and a net margin of 2.25%. The firm's quarterly revenue was down 2.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.65 EPS. As a group, sell-side analysts anticipate that Park Hotels & Resorts Inc. will post 2.11 EPS for the current year.

Park Hotels & Resorts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.1%. The ex-dividend date is Tuesday, September 30th. Park Hotels & Resorts's dividend payout ratio is presently 370.37%.

Park Hotels & Resorts Company Profile

Park Hotels & Resorts, Inc operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts include the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio.