United Parks & Resorts (NYSE:PRKS) Stock Jumps 4.5% - Still a Buy?

Key Points

• United Parks & Resorts shares rose 4.5% to about $34.13 in mid-day trading, although volume was roughly 90% below the average session level.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy, nine Hold and one Sell, resulting in a consensus Hold rating and a $45.40 average price target.
• The company missed quarterly expectations, reporting $1.34 in EPS versus $1.67 expected and revenue of $483.3 million versus $492.1 million, while revenue declined 1.4% year over year.

United Parks & Resorts Inc. (NYSE:PRKS - Get Free Report)'s share price traded up 4.5% during mid-day trading on Monday. The company traded as high as $34.07 and last traded at $34.1250. Approximately 91,131 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 933,916 shares. The stock had previously closed at $32.67.

Analyst Upgrades and Downgrades

A number of brokerages have commented on PRKS. The Goldman Sachs Group increased their price objective on shares of United Parks & Resorts from $37.00 to $41.00 and gave the stock a "neutral" rating in a report on Monday, July 27th. Zacks Research downgraded shares of United Parks & Resorts from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Guggenheim upped their target price on shares of United Parks & Resorts from $51.00 to $54.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Truist Financial reduced their target price on shares of United Parks & Resorts from $53.00 to $49.00 and set a "buy" rating on the stock in a research report on Thursday, September 10th. Finally, Barclays increased their price target on shares of United Parks & Resorts from $37.00 to $41.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 5th. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $45.40.

United Parks & Resorts Price Performance

The firm has a 50 day moving average price of $39.17 and a 200-day moving average price of $39.87. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of 13.42, a price-to-earnings-growth ratio of 3.07 and a beta of 1.25.

United Parks & Resorts (NYSE:PRKS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $1.34 EPS for the quarter, missing analysts' consensus estimates of $1.67 by ($0.33). The firm had revenue of $483.32 million during the quarter, compared to analyst estimates of $492.10 million. United Parks & Resorts had a negative return on equity of 27.85% and a net margin of 8.11%. United Parks & Resorts's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.45 earnings per share. On average, sell-side analysts expect that United Parks & Resorts Inc. will post 2.85 EPS for the current fiscal year.

Insider Activity

In related news, insider Christopher L. Finazzo sold 6,622 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $44.20, for a total value of $292,692.40. Following the transaction, the insider directly owned 123,663 shares in the company, valued at $5,465,904.60. This represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider James W. Forrester, Jr. sold 1,150 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $35.71, for a total transaction of $41,066.50. Following the completion of the transaction, the insider directly owned 26,733 shares in the company, valued at approximately $954,635.43. The trade was a 4.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of United Parks & Resorts

A number of institutional investors have recently bought and sold shares of PRKS. BlackRock Inc. acquired a new position in United Parks & Resorts during the second quarter valued at approximately $171,560,000. River Road Asset Management LLC increased its stake in United Parks & Resorts by 3.8% in the fourth quarter. River Road Asset Management LLC now owns 2,056,349 shares of the company's stock valued at $74,645,000 after purchasing an additional 74,392 shares in the last quarter. Hawk Ridge Capital Management LP acquired a new stake in United Parks & Resorts in the first quarter worth $51,094,000. Engine Capital Management LP raised its holdings in United Parks & Resorts by 20.8% in the first quarter. Engine Capital Management LP now owns 1,034,414 shares of the company's stock worth $33,784,000 after purchasing an additional 178,017 shares during the period. Finally, Bank of America Corp DE bought a new position in shares of United Parks & Resorts during the second quarter worth $26,222,000.

United Parks & Resorts Company Profile

United Parks & Resorts Inc NYSE: PRKS is a theme park and entertainment company that owns and operates a portfolio of parks and attractions in the United States. Its properties combine amusement rides, live entertainment, animal exhibits, educational experiences, and seasonal events for families and other guests.

The company's principal brands include SeaWorld, Busch Gardens, Sesame Place, Discovery Cove, Aquatica, Adventure Island, and Water Country USA. Its parks offer roller coasters and other rides, water attractions, animal encounters, zoological presentations, dining, retail, and hospitality-related experiences.

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