Park Hotels & Resorts (NYSE:PK) Trading Down 6% on Disappointing Earnings

Park Hotels & Resorts Inc. (NYSE:PK) shares traded down 6% on Friday following a weaker than expected earnings announcement. The stock traded as low as $9.88 and last traded at $10.0910. 1,421,626 shares were traded during trading, a decline of 64% from the average session volume of 3,939,583 shares. The stock had previously closed at $10.73.

The financial services provider reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.08). Park Hotels & Resorts had a negative net margin of 0.47% and a negative return on equity of 1.24%. The business had revenue of $610.00 million during the quarter, compared to analysts’ expectations of $617.05 million. During the same quarter in the prior year, the firm earned $0.49 EPS. Park Hotels & Resorts’s revenue for the quarter was down 6.0% compared to the same quarter last year. Park Hotels & Resorts has set its FY 2025 guidance at 1.850-1.970 EPS.

Park Hotels & Resorts Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st will be given a $0.25 dividend. The ex-dividend date is Wednesday, December 31st. This represents a $1.00 dividend on an annualized basis and a yield of 9.7%. Park Hotels & Resorts’s payout ratio is currently 370.37%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. UBS Group lifted their target price on Park Hotels & Resorts from $10.00 to $11.00 and gave the company a “neutral” rating in a research report on Monday, October 6th. Cantor Fitzgerald assumed coverage on Park Hotels & Resorts in a research report on Wednesday, October 1st. They issued a “neutral” rating and a $12.00 target price on the stock. Citigroup cut Park Hotels & Resorts from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $13.00 to $12.00 in a research note on Tuesday, September 9th. Wall Street Zen cut Park Hotels & Resorts from a “hold” rating to a “sell” rating in a research note on Friday, July 18th. Finally, Morgan Stanley reaffirmed an “outperform” rating on shares of Park Hotels & Resorts in a research note on Tuesday, July 15th. One analyst has rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Park Hotels & Resorts currently has an average rating of “Reduce” and a consensus price target of $11.20.

Hedge Funds Weigh In On Park Hotels & Resorts

Hedge funds have recently bought and sold shares of the company. Parvin Asset Management LLC purchased a new position in Park Hotels & Resorts in the 2nd quarter valued at approximately $26,000. Bessemer Group Inc. increased its stake in Park Hotels & Resorts by 359.3% in the 2nd 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 in the last quarter. IFP Advisors Inc increased its stake in Park Hotels & Resorts by 469.0% in the 2nd 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 in the last quarter. Allworth Financial LP increased its stake in Park Hotels & Resorts by 322.4% in the 2nd quarter. Allworth Financial LP now owns 3,920 shares of the financial services provider’s stock valued at $40,000 after purchasing an additional 2,992 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in Park Hotels & Resorts by 401.2% in the 1st quarter. GAMMA Investing LLC now owns 5,283 shares of the financial services provider’s stock valued at $56,000 after purchasing an additional 4,229 shares in the last quarter. 92.69% of the stock is owned by hedge funds and other institutional investors.

Park Hotels & Resorts Stock Down 4.0%

The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 1.35. The firm has a 50 day moving average of $11.39 and a two-hundred day moving average of $10.82. The stock has a market capitalization of $2.06 billion, a PE ratio of -147.09 and a beta of 1.83.

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.