Why HG Vora Dumped $53.5 Million in United Parks Amid a 44% Stock Slide
Key Points
New York City-based HG Vora Capital Management sold 1,175,000 shares of United Parks & Resorts for an estimated $53.5 million in the third quarter.
The transaction value equaled 8% of the firm's reportable assets under management (AUM) at quarter-end.
Following the sale, HG Vora reported still holding 425,000 shares valued at $22 million.
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New York City-based HG Vora Capital Management disclosed a significant reduction in its United Parks & Resorts Inc. (NYSE:PRKS) stake, cutting nearly 1.2 million shares for an estimated $53.5 million, per an SEC filing on Friday.
What Happened
According to a filing with the Securities and Exchange Commission released Friday, HG Vora Capital Management sold nearly 1.2 million shares of United Parks & Resorts Inc. (NYSE:PRKS) during the third quarter. The transaction reduced the position’s quarter-end value to $22 million, with the stake now totaling 425,000 shares.
What Else to Know
HG Vora's United Parks & Resorts Inc. position now represents 3% of 13F AUM, down from 11% in the prior quarter.
Top holdings after the filing:
- NASDAQ: PENN: $139.6 million (18.9% of AUM)
- NASDAQ: CZR: $94.6 million (12.8% of AUM)
- NASDAQ: DRVN: $90.2 million (12.2% of AUM)
- NYSE: FAF: $65.8 million (8.9% of AUM)
- NYSE: R: $63.2 million (8.6% of AUM)
As of Friday's market close, shares of United Parks & Resorts Inc. were priced at $31.97, down 44% over the past year and far underperforming the S&P 500, which has climbed nearly 15%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.7 billion |
| Net Income (TTM) | $181.2 million |
| Market Capitalization | $1.7 billion |
| Price (as of market close Friday) | $31.97 |
Company Snapshot
United Parks & Resorts Inc. is a leading U.S. theme park operator with a diversified portfolio of well-known brands and locations. The company operates a portfolio of twelve theme parks under the SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island, and Sesame Place brands, offering marine life exhibits, rides, shows, and water attractions. Its focus on experiential entertainment and established presence in key tourism markets supports consistent guest engagement and revenue generation.
Foolish Take
HG Vora’s move matters because it signals when even a deep-value specialist decides a discount no longer compensates for a stock's trajectory. The fund—whose strategy targets cash-generating businesses with multiple paths to unlock value—typically builds concentrated positions in out-of-favor consumer and leisure names, according to its website. So shrinking United Parks & Resorts from 11% to 3% of AUM suggests conviction might have meaningfully waned.
To help illustrate: Third-quarter revenue fell 6.2% to $511.9 million, and attendance dropped 3.4% to 6.8 million guests—reflecting a decrease of about 240,000 guests year over year. Net income, meanwhile, declined 25% to $89.3 million, and free cash flow also weakened. Management cited an unfavorable holiday calendar, weather disruptions, and a reversal in international visitation—factors that dragged per-capita revenue and highlight the sensitivity of theme park economics to small shifts in demand. Shares have cratered 44% over the past year, even as the S&P 500 gained nearly 15%.
Within HG Vora’s portfolio—dominated by higher-conviction holdings like Penn Entertainment, Caesars, and Driven Brands—United Parks had become an increasingly tough fit for the firm’s “multiple paths to value” playbook.
United Parks' business might not be broken, but its margin of safety has narrowed. Execution needs to improve, demand must stabilize, and cost efficiencies must show up before deep-value investors regain confidence.
Glossary
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
13F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Reportable assets: Investments that must be disclosed in regulatory filings, such as those reported on Form 13F.
Stake: The ownership interest or shareholding an investor holds in a company.
Top holdings: The largest investments in a fund’s portfolio, typically by market value.
Quarter-end value: The value of an investment position at the end of a fiscal quarter.
Position: The amount of a particular security or asset owned by an investor or fund.
Underperforming: Delivering returns that are lower than a benchmark or comparable investments.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends United Parks & Resorts. The Motley Fool has a disclosure policy.
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