Core Insights - HG Vora Capital Management has significantly reduced its stake in United Parks & Resorts Inc., selling nearly 1.2 million shares for approximately $53.5 million, which indicates a strategic pivot on one of its major investments [1][2][6] Company Performance - United Parks & Resorts Inc. reported a third-quarter revenue decline of 6.2% to $511.9 million, with attendance dropping 3.4% to 6.8 million guests, reflecting a decrease of about 240,000 guests year over year [7][8] - Net income for the company fell 25% to $89.3 million, and free cash flow also weakened, attributed to factors such as an unfavorable holiday calendar, weather disruptions, and a reversal in international visitation [8][9] Financial Metrics - As of the latest market close, United Parks & Resorts Inc. shares were priced at $31.97, down 44% over the past year, significantly underperforming compared to the S&P 500, which has gained nearly 15% [3][4][8] - The company's market capitalization stands at $1.7 billion, with a trailing twelve-month (TTM) revenue of $1.7 billion and a TTM net income of $181.2 million [4][5] Investment Implications - The reduction of United Parks & Resorts' position from 11% to 3% of HG Vora's assets under management (AUM) suggests a waning conviction in the stock's potential for recovery [3][6] - The company's business model is under scrutiny, as it may not be fundamentally broken, but the margin of safety has narrowed, necessitating improvements in execution, stabilization of demand, and demonstration of cost efficiencies to regain investor confidence [9]