NYSE:PK) shareholders will doubtless be very grateful to see the share price up 36% in the last quarter. But that doesn’t change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 63%. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.” data-reactid=”28″>Park Hotels & Resorts Inc. (NYSE:PK) shareholders will doubtless be very grateful to see the share price up 36% in the last quarter. But that doesn’t change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 63%. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.
View our latest analysis for Park Hotels & Resorts ” data-reactid=”29″>View our latest analysis for Park Hotels & Resorts
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Park Hotels & Resorts saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Since the company has fallen to a loss making position, it’s hard to compare the change in EPS with the share price change. However, we can say we’d expect to see a falling share price in this scenario.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
earnings, revenue and cash flow.” data-reactid=”49″>It’s good to see that there was some significant insider buying in the last three months. That’s a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Park Hotels & Resorts’ earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
A Different Perspective
3 warning signs for Park Hotels & Resorts (1 makes us a bit uncomfortable) that you should be aware of.” data-reactid=”53″>Over the last year, Park Hotels & Resorts shareholders took a loss of 54%. In contrast the market gained about 20%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. The three-year loss of 15% per year isn’t as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Baron Rothschild famously said to “buy when there’s blood in the streets, even if the blood is your own”, he also focusses on high quality stocks with solid prospects. It’s always interesting to track share price performance over the longer term. But to understand Park Hotels & Resorts better, we need to consider many other factors. For instance, we’ve identified 3 warning signs for Park Hotels & Resorts (1 makes us a bit uncomfortable) that you should be aware of.
list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”54″>Park Hotels & Resorts is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”60″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.