Playa Hotels & Resorts N.V. (NASDAQ: PLYA): Stock That Needs Special Handling

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HG Vora Capital Management LLC recently announced the acquisition of new stake in Playa Hotels & Resorts N.V. (NASDAQ:PLYA). The institutional investor has increased its shareholding in the Consumer Cyclical company by 36.05% to 10.0 million shares with purchase of 2.65 million shares. This fresh investment now brings its stake to 7.44% valued currently at $36.2 million. In addition, Redwood Capital Management LLC raised its holdings by 2.71 million to 4.34 million shares. And Marlowe Partners LP has lifted its position by 6.99% or 0.26 million shares – to 4.04 million shares.

With over 0.29 million Playa Hotels & Resorts N.V. (PLYA) shares trading Thursday and a closing price of $3.79 on the day, the dollar volume was approximately $1.08 million. The shares have shown a positive weekly performance of 8.29% and its price on 07/16/20 lost nearly -0.26%. Currently, there are 129.29M common shares owned by the public and among those 84.20M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for PLYA have a consensus price objective of $4.80. The analysts have set the share’s price value over the next 12 months at a high of $8.00 and a low of $2.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Playa Hotels & Resorts N.V. stock is 2.60 for the next 12 months. The average price target is 21.04% above its last price level and an upside to the estimated low will see the stock lose -89.5% over that period. But an upside of 52.63% will see the stock hit the forecast high price target while mean target price for the stock is $4.00.

Insiders at the company have transacted a total of 36 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 1,252,211 shares. Insider sales of the common stock occurred on 14 occasions, with total insider shares sold totaling 76,641 shares.

The top 3 mutual fund holders in Playa Hotels & Resorts N.V. are DFA US Small Cap Value Portfolio, Vanguard Extended Market Index Fu, and Fidelity Strategic Advisers Small. DFA US Small Cap Value Portfolio owns 0.9 million shares of the company’s stock, all valued at over $3.27 million. The company bought an additional 36978.0 shares recently to bring their total holdings to about 0.67% of the shares outstanding. Vanguard Extended Market Index Fu bought 16218.0 shares to see its total holdings expand to 0.81 million shares valued at over $2.95 million and representing 0.61% of the shares outstanding. Fidelity Strategic Advisers Small bought 0.18 million shares to bring its total holdings to over 0.8 million shares at a value of $2.91 million. Fidelity Strategic Advisers Small now owns shares totaling to 0.60% of the shares outstanding.

Shares of Playa Hotels & Resorts N.V. (NASDAQ: PLYA) opened at $3.75, down -$0.05 from a prior closing price of $3.80. However, the script later closed the day at $3.79, down -0.26%. The company’s stock has a 5-day price change of 8.29% and 69.20% over the past three months. PLYA shares are trading -54.88% year to date (YTD), with the 12-month market performance down to -50.07% lower. It has a 12-month low price of $1.30 and touched a high of $8.59 over the same period. Currently, 0.29 million shares have been traded, compared to an average intraday trading volume of 1.43 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.78%, 19.67%, and -29.02% respectively.

Institutional ownership of Playa Hotels & Resorts N.V. (NASDAQ: PLYA) shares accounts for 69.70% of the company’s 129.29M shares outstanding. Mutual fund holders own 54.08%, while other institutional holders and individual stakeholders account for 7.23% and 42.46% respectively.

It has a market capitalization of $503.16M and a beta (3y monthly) value of 2.16. The earnings-per-share (ttm) stands at -$0.54. The company has a debt-to-equity ratio at 1.38. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.87% over the week and 6.97% over the month.

Analysts forecast that Playa Hotels & Resorts N.V. (PLYA) will achieve an EPS of -$0.47 for the current quarter, -$0.3 for the next quarter and -$0.3 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.61 while analysts give the company a high EPS estimate of -$0.41. Comparatively, EPS for the current quarter was $0.01 a year ago. Earnings per share for the fiscal year are expected to decrease by -121.60%, and 69.10% over the next financial year. EPS should shrink at an annualized rate of 15.48% over the next five years, compared to 51.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Playa Hotels & Resorts N.V. (PLYA) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 1 of the 5 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the PLYA, a number of firms have released research notes about the stock. SunTrust stated their Hold rating for the stock in a research note on April 29, 2020, with the firm’s price target at. Citigroup coverage for the Playa Hotels & Resorts N.V. (PLYA) stock in a research note released on April 07, 2020 offered a Sell rating with a price target of $1. Macquarie was of a view on January 09, 2020 that the stock is Outperform, while Nomura gave the stock Neutral rating on September 18, 2018, issuing a price target of. SunTrust on their part issued Buy rating on August 28, 2018.

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