Private Management Group Inc. Reduces Position in Park Hotels & Resorts Inc. $PK

Key Points

• Private Management Group Inc. reduced its Park Hotels & Resorts stake by 4.6% in the second quarter, selling 146,636 shares and retaining 3.03 million shares valued at approximately $43.2 million. Institutional investors collectively own 92.69% of PK.
• Park Hotels & Resorts reported quarterly EPS of $0.24, matching analyst estimates, while revenue of $680 million exceeded expectations and increased 1.2% year over year.
• The company declared a quarterly dividend of $0.25 per share, or $1.00 annualized, representing a 6.3% yield. Analysts broadly rate the stock “Hold,” with an average price target of $14.08 versus its reported $15.84 share price.

Private Management Group Inc. decreased its stake in shares of Park Hotels & Resorts Inc. (NYSE:PK - Free Report) by 4.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,034,061 shares of the financial services provider's stock after selling 146,636 shares during the quarter. Park Hotels & Resorts comprises 1.1% of Private Management Group Inc.'s holdings, making the stock its 18th biggest position. Private Management Group Inc. owned approximately 1.51% of Park Hotels & Resorts worth $43,235,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of Park Hotels & Resorts during the second quarter valued at $444,311,000. Donald Smith & CO. Inc. raised 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 acquiring an additional 1,813,338 shares during the last quarter. Bank of America Corp DE raised its stake in Park Hotels & Resorts by 1.6% in the 3rd quarter. Bank of America Corp DE now owns 13,074,474 shares of the financial services provider's stock worth $144,865,000 after acquiring an additional 203,922 shares during the last quarter. AQR Capital Management LLC lifted its position in Park Hotels & Resorts by 76.7% during the 2nd 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. Finally, Sculptor Capital LP lifted its position in Park Hotels & Resorts by 154.1% during the 2nd quarter. Sculptor Capital LP now owns 6,534,153 shares of the financial services provider's stock worth $66,844,000 after acquiring an additional 3,962,304 shares during the period. Hedge funds and other institutional investors own 92.69% of the company's stock.

Park Hotels & Resorts Price Performance

NYSE:PK opened at $15.84 on Friday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.53 and a quick ratio of 1.53. The company has a 50 day moving average price of $14.86 and a 200-day moving average price of $12.73. Park Hotels & Resorts Inc. has a 1-year low of $9.84 and a 1-year high of $16.20. The firm has a market cap of $3.19 billion, a price-to-earnings ratio of -19.08, a price-to-earnings-growth ratio of 2.06 and a beta of 1.34.

Park Hotels & Resorts (NYSE:PK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $659.68 million. During the same period in the prior year, the firm posted $0.64 earnings per share. The firm's quarterly revenue was up 1.2% compared to the same quarter last year. Equities research analysts forecast that Park Hotels & Resorts Inc. will post 1.83 EPS for the current year.

Park Hotels & Resorts Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.25 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 6.3%. Park Hotels & Resorts's dividend payout ratio (DPR) is -120.48%.

Wall Street Analyst Weigh In

PK has been the topic of a number of research reports. Weiss Ratings raised Park Hotels & Resorts from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $18.00 price target on shares of Park Hotels & Resorts in a research report on Friday, August 14th. BMO Capital Markets reaffirmed a "market perform" rating and issued a $14.00 price objective on shares of Park Hotels & Resorts in a report on Friday, June 12th. Wells Fargo & Company upgraded shares of Park Hotels & Resorts to a "hold" rating in a research note on Thursday, July 23rd. Finally, JPMorgan Chase & Co. boosted their target price on shares of Park Hotels & Resorts from $13.00 to $14.00 and gave the company an "underweight" rating in a research report on Monday, August 10th. Two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price 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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