What Happened?

Shares of hospitality company Playa Hotels & Resorts (NASDAQ: PLYA) jumped 29.2% in the morning session after a Reuters report revealed that the company is in exclusive talks with Hyatt Hotels about a potential takeover. The report confirmed that talks to acquire PLYA will continue through February 3rd, 2025, or until an agreement is reached.

Is now the time to buy Playa Hotels & Resorts? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Playa Hotels & Resorts’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Playa Hotels & Resorts and indicate this news significantly impacted the market’s perception of the business.

Playa Hotels & Resorts is up 42.9% since the beginning of the year, and at $12.25 per share, has set a new 52-week high. Investors who bought $1,000 worth of Playa Hotels & Resorts’s shares 5 years ago would now be looking at an investment worth $1,574.

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.