Park Hotels & Resorts Inc. (NYSE:PK) Announces $0.25 Quarterly Dividend

Key Points

• Park Hotels & Resorts Inc. announced a quarterly dividend of $0.25 per share, with an annualized dividend yield of 9.7%, payable on October 15th to stockholders of record as of September 30th.
• The company currently has a payout ratio of 172.4%, indicating it is relying on its balance sheet to cover its dividends, although future earnings are expected to support a reduced payout ratio of 45.2% next year.
• Park Hotels & Resorts reported a net margin of 4.90% and earnings of $0.64 per share for the last quarter, beating analysts' expectations of $0.57 per share.

Park Hotels & Resorts Inc. (NYSE:PK - Get Free Report) announced a quarterly dividend on Friday, August 1st, Wall Street Journal reports. Investors of record on Tuesday, September 30th will be paid a dividend of 0.25 per share by the financial services provider on Wednesday, October 15th. This represents a c) annualized dividend and a dividend yield of 9.6%. The ex-dividend date of this dividend is Tuesday, September 30th.

Park Hotels & Resorts has a payout ratio of 172.4% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Park Hotels & Resorts to earn $2.21 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 45.2%.

Park Hotels & Resorts Stock Performance

Park Hotels & Resorts stock traded up $0.06 during midday trading on Tuesday, reaching $10.46. 1,359,261 shares of the company traded hands, compared to its average volume of 4,180,604. The firm has a market capitalization of $2.09 billion, a price-to-earnings ratio of 38.73 and a beta of 1.80. The business has a 50 day moving average of $10.60 and a two-hundred day moving average of $11.13. Park Hotels & Resorts has a 12 month low of $8.27 and a 12 month high of $16.23. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.16 and a quick ratio of 1.07.

Park Hotels & Resorts (NYSE:PK - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The financial services provider reported $0.64 earnings per share for the quarter, beating analysts' consensus estimates of $0.57 by $0.07. The company had revenue of $672.00 million for the quarter, compared to the consensus estimate of $672.37 million. Park Hotels & Resorts had a net margin of 2.25% and a return on equity of 0.76%. The firm's revenue for the quarter was down 2.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.65 earnings per share. As a group, research analysts predict that Park Hotels & Resorts will post 2.11 earnings per share for the current year.

Institutional Investors Weigh In On Park Hotels & Resorts

Several institutional investors have recently modified their holdings of the stock. UMB Bank n.a. raised its holdings in shares of Park Hotels & Resorts by 140.9% in the first quarter. UMB Bank n.a. now owns 2,385 shares of the financial services provider's stock worth $25,000 after buying an additional 1,395 shares during the period. Quarry LP purchased a new stake in shares of Park Hotels & Resorts in the fourth quarter worth approximately $35,000. Versant Capital Management Inc boosted its holdings in shares of Park Hotels & Resorts by 11,039.1% in the first quarter. Versant Capital Management Inc now owns 2,562 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 2,539 shares during the period. Bessemer Group Inc. boosted its holdings in shares of Park Hotels & Resorts by 359.3% in the second quarter. Bessemer Group Inc. now owns 3,082 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 2,411 shares during the period. Finally, IFP Advisors Inc boosted its holdings in shares of Park Hotels & Resorts by 469.0% in the second quarter. IFP Advisors Inc now owns 3,465 shares of the financial services provider's stock valued at $35,000 after purchasing an additional 2,856 shares during the period. 92.69% of the stock is owned by institutional investors.

About Park Hotels & Resorts

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.