Donald Smith & CO. Inc. Buys 1,813,338 Shares of Park Hotels & Resorts Inc. $PK

Key Points

• Donald Smith & Co. Inc. increased its stake in Park Hotels & Resorts by 14.2% in the fourth quarter, buying 1,813,338 additional shares and bringing its total holding to 14,617,921 shares, or about 7.31% of the company.
• Park Hotels & Resorts has seen mixed analyst sentiment, with most firms rating it Hold/Neutral and MarketBeat showing an average target price of $12.15, though one analyst has a Buy rating.
• The company reported Q1 earnings of $0.05 per share, missing expectations, while revenue came in at $622 million; it also declared a quarterly dividend of $0.25 per share, implying a 7.2% annual yield.

Donald Smith & CO. Inc. lifted its stake in shares of Park Hotels & Resorts Inc. (NYSE:PK - Free Report) by 14.2% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 14,617,921 shares of the financial services provider's stock after purchasing an additional 1,813,338 shares during the quarter. Park Hotels & Resorts comprises about 2.9% of Donald Smith & CO. Inc.'s investment portfolio, making the stock its 10th largest position. Donald Smith & CO. Inc. owned approximately 7.31% of Park Hotels & Resorts worth $152,903,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in PK. Amundi grew its stake in shares of Park Hotels & Resorts by 1.9% during the 1st quarter. Amundi now owns 115,143 shares of the financial services provider's stock worth $1,119,000 after purchasing an additional 2,179 shares during the period. Millennium Management LLC grew its stake in shares of Park Hotels & Resorts by 849.3% during the 1st quarter. Millennium Management LLC now owns 523,851 shares of the financial services provider's stock worth $5,595,000 after purchasing an additional 468,668 shares during the period. United Services Automobile Association acquired a new position in shares of Park Hotels & Resorts during the 1st quarter worth $152,000. Empowered Funds LLC grew its stake in shares of Park Hotels & Resorts by 10.1% during the 1st quarter. Empowered Funds LLC now owns 22,380 shares of the financial services provider's stock worth $239,000 after purchasing an additional 2,058 shares during the period. Finally, Focus Partners Wealth grew its stake in shares of Park Hotels & Resorts by 30.6% during the 1st quarter. Focus Partners Wealth now owns 18,646 shares of the financial services provider's stock worth $199,000 after purchasing an additional 4,374 shares during the period. 92.69% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

PK has been the topic of a number of recent analyst reports. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $12.00 price target on shares of Park Hotels & Resorts in a research note on Wednesday, May 13th. Zacks Research raised shares of Park Hotels & Resorts from a "strong sell" rating to a "hold" rating in a research note on Thursday, February 19th. Wells Fargo & Company upped their price target on shares of Park Hotels & Resorts from $10.00 to $12.00 and gave the stock an "equal weight" rating in a research note on Monday, June 1st. Truist Financial upped their price target on shares of Park Hotels & Resorts from $12.00 to $13.00 and gave the stock a "hold" rating in a research note on Tuesday, May 26th. Finally, LADENBURG THALM/SH SH initiated coverage on shares of Park Hotels & Resorts in a research note on Thursday, March 26th. They set a "buy" rating and a $16.00 price target on the stock. One equities research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $12.15.

Park Hotels & Resorts Price Performance

Shares of NYSE PK opened at $13.92 on Thursday. The stock has a market cap of $2.80 billion, a price-to-earnings ratio of -12.77, a PEG ratio of 1.93 and a beta of 1.37. Park Hotels & Resorts Inc. has a 52 week low of $9.84 and a 52 week high of $14.54. The company's 50-day moving average price is $11.60 and its 200 day moving average price is $11.18. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 1.27.

Park Hotels & Resorts (NYSE:PK - Get Free Report) last released its earnings results on Thursday, April 30th. The financial services provider reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.33). The firm had revenue of $622.00 million during the quarter, compared to analysts' expectations of $609.78 million. Park Hotels & Resorts had a negative net margin of 8.49% and a negative return on equity of 6.71%. Park Hotels & Resorts's revenue for the quarter was down 1.3% on a year-over-year basis. During the same quarter last year, the company posted $0.46 earnings per share. Park Hotels & Resorts has set its FY 2026 guidance at 1.740-1.900 EPS. As a group, research analysts forecast that Park Hotels & Resorts Inc. will post 1.74 earnings per share for the current fiscal year.

Park Hotels & Resorts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 7.2%. The ex-dividend date is Tuesday, June 30th. Park Hotels & Resorts's dividend payout ratio is -91.74%.

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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