Park Hotels & Resorts Inc. [NYSE: PK] stock went on a downward path that fall over -2.34% on Friday, amounting to a one-week price decrease of less than -6.41%. The company report on July 13, 2021 that Park Hotels & Resorts Executes Definitive Contracts to Sell Two of Its San Francisco Hotels and Provides an Update on Hotel Reopenings and Operating Trends.
Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE:PK) announced that it has entered into two separate, definitive contracts to sell the 360-room Le Meridien San Francisco and the 171-room Hotel Adagio, Autograph Collection (San Francisco, CA) for total proceeds of $303.5 million, or an average sale price of approximately $572,000 per key. When adjusted for Park’s anticipated capital expenditures (“capex”), the blended sale price represents a 6.1% capitalization rate on 2019 net operating income (6.7% excluding capex), or 14.4x 2019 EBITDA (13.2x excluding capex). Management currently expects each of the transactions to close within the next 60 days.
Le Meridien San FranciscoGross proceeds for the Le Meridien San Francisco are $221.5 million, or approximately $615,000/key. When adjusted for Park’s anticipated capex, the sale price equates to a 5.9% capitalization rate on 2019 net operating income (6.5% excluding capex), or 15.0x 2019 EBITDA (13.7x excluding capex).
Over the last 12 months, PK stock rose by 89.98%. The one-year Park Hotels & Resorts Inc. stock forecast points to a potential upside of 22.14. The average equity rating for PK stock is currently 2.60, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $4.45 billion, with 235.00 million shares outstanding and 233.84 million shares in the current float. Compared to the average trading volume of 2.49M shares, PK stock reached a trading volume of 2166206 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Park Hotels & Resorts Inc. [PK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PK shares is $23.62 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PK stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Deutsche Bank have made an estimate for Park Hotels & Resorts Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 14, 2021. The new note on the price target was released on July 12, 2021, representing the official price target for Park Hotels & Resorts Inc. stock. Previously, the target price had yet another raise from $18 to $26, while Compass Point kept a Buy rating on PK stock. On December 15, 2020, analysts increased their price target for PK shares from 9.25 to 18.
The Average True Range (ATR) for Park Hotels & Resorts Inc. is set at 0.75, with the Price to Sales ratio for PK stock in the period of the last 12 months amounting to 10.65. The Price to Book ratio for the last quarter was 0.92, with the Price to Cash per share for the same quarter was set at 3.58.
PK Stock Performance Analysis:
Park Hotels & Resorts Inc. [PK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.41. With this latest performance, PK shares dropped by -15.87% in over the last four-week period, additionally plugging by 2.05% over the last 6 months – not to mention a rise of 89.98% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PK stock in for the last two-week period is set at 32.82, with the RSI for the last a single of trading hit 28.27, and the three-weeks RSI is set at 36.47 for Park Hotels & Resorts Inc. [PK]. The present Moving Average for the last 50 days of trading for this stock 20.80, while it was recorded at 18.97 for the last single week of trading, and 18.36 for the last 200 days.
Insight into Park Hotels & Resorts Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Park Hotels & Resorts Inc. [PK] shares currently have an operating margin of -63.97 and a Gross Margin at -53.87. Park Hotels & Resorts Inc.’s Net Margin is presently recorded at -169.01.
Return on Total Capital for PK is now -5.24, given the latest momentum, and Return on Invested Capital for the company is -13.90. Return on Equity for this stock declined to -25.29, with Return on Assets sitting at -13.16. When it comes to the capital structure of this company, Park Hotels & Resorts Inc. [PK] has a Total Debt to Total Equity ratio set at 109.65. Additionally, PK Total Debt to Total Capital is recorded at 52.30, with Total Debt to Total Assets ending up at 50.68. Long-Term Debt to Equity for the company is recorded at 106.64, with the Long-Term Debt to Total Capital now at 50.87.
Reflecting on the efficiency of the workforce at the company, Park Hotels & Resorts Inc. [PK] managed to generate an average of -$7,912,088 per employee. Receivables Turnover for the company is 8.11 with a Total Asset Turnover recorded at a value of 0.08.
Park Hotels & Resorts Inc. [PK] Insider Position Details
There are presently around $3,988 million, or 96.00% of PK stock, in the hands of institutional investors. The top three institutional holders of PK stocks are: VANGUARD GROUP INC with ownership of 33,258,869, which is approximately 1.145% of the company’s market cap and around 1.00% of the total institutional ownership; BLACKROCK INC., holding 27,589,748 shares of the stock with an approximate value of $507.38 million in PK stocks shares; and PGGM INVESTMENTS, currently with $363.08 million in PK stock with ownership of nearly New of the company’s market capitalization.
Positions in Park Hotels & Resorts Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 139 institutional holders increased their position in Park Hotels & Resorts Inc. [NYSE:PK] by around 32,531,520 shares. Additionally, 140 investors decreased positions by around 23,618,175 shares, while 43 investors held positions by with 160,723,191 shares. The mentioned changes placed institutional holdings at 216,872,886 shares, according to the latest SEC report filing. PK stock had 45 new institutional investments in for a total of 22,623,201 shares, while 38 institutional investors sold positions of 4,141,917 shares during the same period.