Investors in cash trouble should check out Park Hotels & Resorts Inc. (PK)

Park Hotels & Resorts Inc. (NYSE: PK) stock jumped 2.24% on Friday to $15.54 against a previous-day closing price of $15.20. With 2.98 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.06 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $15.88 whereas the lowest price it dropped to was $15.36. The 52-week range on PK shows that it touched its highest point at $21.62 and its lowest point at $12.90 during that stretch. It currently has a 1-year price target of $21.32. With its current market cap of 3.50 billion, PK has annualized dividend of $0.04 while the current yield stands at 0.26%. Beta for the stock currently stands at 1.98.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PK was up-trending over the past week, with a rise of 3.39%, but this was up by 14.18% over a month. Three-month performance dropped to -20.27% while six-month performance fell -16.14%. The stock lost -13.04% in the past year, while it has lost -17.69% so far this year. A look at the trailing 12-month EPS for PK yields -1.38 with Next year EPS estimates of 0.93. For the next quarter, that number is 0.13. This implies an EPS growth rate of 68.10% for this year and 327.06% for next year.

Float and Shares Shorts:

At present, 235.00 million PK shares are outstanding with a float of 230.72 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.67 million, which was 5.86% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas Jeremiah Baltimore Jr. as the firm’s Chairman, Pres & CEO, Mr. Sean M. Dell’Orto serves as its Exec. VP, CFO & Treasurer.

Institutional Ownership:

Through their ownership of 93.78% of PK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.78% of PK, in contrast to 46.12% held by mutual funds. Shares owned by individuals account for 46.10%. As the largest shareholder in PK with 14.21% of the stake, The Vanguard Group, Inc. holds 33,172,096 shares worth 33,172,096. A second-largest stockholder of PK, BlackRock Fund Advisors, holds 21,232,668 shares, controlling over 9.10% of the firm’s shares. PGGM Vermogensbeheer BV is the third largest shareholder in PK, holding 13,778,606 shares or 5.90% stake. With a 4.66% stake in PK, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 10,877,861 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.89% of PK stock, is the second-largest Mutual Fund holder. It holds 6,745,980 shares valued at 91.54 million. Vanguard Total Stock Market Index holds 2.65% of the stake in PK, owning 6,192,637 shares worth 84.03 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PK since 16 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PK analysts setting a high price target of $28.00 and a low target of $15.00, the average target price over the next 12 months is $21.32. Based on these targets, PK could surge 80.18% to reach the target high and fall by -3.47% to reach the target low. Reaching the average price target will result in a growth of 37.19% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PK will report FY 2022 earnings on 03/01/2023. Analysts have provided yearly estimates in a range of $0.40 being high and $0.11 being low. For PK, this leads to a yearly average estimate of $0.26. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Park Hotels & Resorts Inc. surprised analysts by $0.09 when it reported -$0.24 EPS against a consensus estimate of -$0.33. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is $0.22 and the low estimate is $0.11. The average estimate for the next quarter is thus $0.15.

Summary of Insider Activity:

Insiders traded PK stock several times over the past three months with 6 Buys and 1 Sells. In these transactions, 19,858 shares were bought while 5,000 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 284,705 while 106,605 shares were sold.

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