Donald Smith & CO. Inc. Acquires New Position in Park Hotels & Resorts Inc. $PK

Key Points

• Donald Smith & Co. acquired 14.5 million shares of Park Hotels & Resorts, worth approximately $207.1 million, giving it a 7.22% stake and making PK its seventh-largest portfolio holding.
• Institutional ownership remains high at 92.69%, with BlackRock, Sculptor Capital, AQR Capital Management and Bank of America also increasing or initiating positions.
• Analysts maintain a consensus “Hold” rating with a $13.92 target price, while PK recently traded at $15.81. The company reported revenue above estimates and declared a quarterly dividend of $0.25 per share, implying a 6.3% annualized yield.

Donald Smith & CO. Inc. acquired a new stake in Park Hotels & Resorts Inc. (NYSE:PK - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 14,534,708 shares of the financial services provider's stock, valued at approximately $207,120,000. Park Hotels & Resorts makes up approximately 3.7% of Donald Smith & CO. Inc.'s investment portfolio, making the stock its 7th biggest holding. Donald Smith & CO. Inc. owned 7.22% of Park Hotels & Resorts as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of Park Hotels & Resorts in the 2nd quarter valued at approximately $444,311,000. Sculptor Capital LP boosted its stake in shares of Park Hotels & Resorts by 154.1% in the second quarter. Sculptor Capital LP now owns 6,534,153 shares of the financial services provider's stock valued at $66,844,000 after buying an additional 3,962,304 shares in the last quarter. AQR Capital Management LLC grew its holdings in Park Hotels & Resorts by 76.7% during the second quarter. AQR Capital Management LLC now owns 7,744,912 shares of the financial services provider's stock worth $79,230,000 after acquiring an additional 3,361,382 shares during the period. Bank of America Corp DE grew its holdings in Park Hotels & Resorts by 34.6% during the second quarter. Bank of America Corp DE now owns 12,870,552 shares of the financial services provider's stock worth $131,666,000 after acquiring an additional 3,309,275 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Park Hotels & Resorts during the third quarter worth $20,905,000. Institutional investors and hedge funds own 92.69% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have commented on PK shares. Truist Financial raised their target price on Park Hotels & Resorts from $12.00 to $13.00 and gave the company a "hold" rating in a report on Tuesday, May 26th. Barclays upped their price target on shares of Park Hotels & Resorts from $9.00 to $12.00 and gave the stock an "equal weight" rating in a research note on Monday, June 1st. Weiss Ratings upgraded shares of Park Hotels & Resorts from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. raised their price objective on shares of Park Hotels & Resorts from $13.00 to $14.00 and gave the company an "underweight" rating in a research note on Monday, August 10th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $18.00 price objective on shares of Park Hotels & Resorts in a report on Friday, August 14th. Two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $13.92.

Park Hotels & Resorts Stock Down 0.1%

PK opened at $15.81 on Friday. The firm has a market cap of $3.18 billion, a P/E ratio of -19.05, a PEG ratio of 2.09 and a beta of 1.34. The business's fifty day simple moving average is $14.73 and its 200 day simple moving average is $12.57. Park Hotels & Resorts Inc. has a 52 week low of $9.84 and a 52 week high of $15.97. The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 1.29.

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 for the quarter, meeting the consensus estimate of $0.24. Park Hotels & Resorts had a negative net margin of 6.41% and a negative return on equity of 5.23%. The firm had revenue of $680.00 million during the quarter, compared to the consensus estimate of $659.68 million. During the same quarter in the previous year, the company posted $0.64 EPS. The firm's revenue for the quarter was up 1.2% on a year-over-year basis. As a group, equities research analysts anticipate that Park Hotels & Resorts Inc. will post 1.79 EPS for the current fiscal year.

Park Hotels & Resorts Announces Dividend

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

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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