Filing Worth Mentioning Today: John Paulson’s Paulson & Co. Inc Just Disclosed New Extended Stay America, Inc Position

Filing Worth Mentioning Today: John Paulson's Paulson & Co. Inc Just Disclosed New Extended Stay America, Inc Position

The New John Paulson’s Paulson & Co. Inc Holding in Extended Stay America, Inc

Paulson & Co. Inc filed with the SEC SC 13D/A form for Extended Stay America, Inc. The form can be accessed here: 000101359416001258. As reported in John Paulson’s Paulson & Co. Inc’s form, the filler as of late owns 19% or 37,678,258 shares of the Consumer Discretionary–company.

Extended Stay America, Inc stake is a new one for the for the hedge fund and it was filed because of activity on October 4, 2016. We feel this shows John Paulson’s Paulson & Co. Inc’s positive view for the stock. For a hedge fund managing $30.85 billion in assets and having 125+ active experts, we at Financialmagazine have no doubt the buy is a bullish signal.

The hedge fund is active investor in the Finance sector. In the manager’s last 13-F, we saw 25% of John Paulson’s Paulson & Co. Inc’s US equities portfolio is in this sector.

Reasons Why John Paulson’s Paulson & Co. Inc Bought – Extended Stay America, Inc Stock

Purpose of Transaction

Item 4 is hereby amended to add the following:

On June 5, 2015, Extended Stay America, Inc. and ESH Hospitality, Inc. filed a joint automatic shelf registration statement contemplating the sale by each of the Sponsors of Paired Shares totaling, together with Paired Shares sold by the other Sponsors, in the aggregate 142,960,388 Paired Shares.

On October 3, 2016, Extended Stay America, Inc. and ESH Hospitality, Inc. filed a prospectus supplement dated September 29, 2016, contemplating the sale by each of the Sponsors of Paired Shares totaling, together with Paired Shares sold by the other Sponsors, in the aggregate 13,000,000 Paired Shares (the “Secondary Offering”). The Secondary Offering closed on October 4, 2016.

In connection with the Secondary Offering, the Issuer and the Sponsors entered into an underwriting agreement (the “Underwriting Agreement”) with the underwriter named therein (the “Underwriter”). Pursuant to the Underwriting Agreement, the Sponsors sold in the aggregate 13,000,000 Paired Shares to the Underwriters. The foregoing description of the terms and conditions of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such document, which is attached as Exhibit 99.1 hereto, and is incorporated herein by reference.

In connection with the Secondary Offering, the Sponsors have also entered into a lock-up agreement (the “Lock-Up Agreement”) with the Issuer and the Underwriter, pursuant to which and subject to specified exceptions, they have agreed not to, among other things and subject to certain exceptions, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly any of the Paired Shares or securities convertible into or exchangeable for Paired Shares, for a period of 30 days after September 29, 2016 except with the prior written consent of Goldman, Sachs & Co. The foregoing description of the terms and conditions of the Lock-Up Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such document, a form of which is attached as Exhibit 99.2 hereto, and is incorporated herein by reference.

Concurrent with the closing of the Secondary Offering, Extended Stay America, Inc. and ESH Hospitality, Inc. repurchased 650,000 Paired Shares from the Reporting Person at a price of $14.16 per Paired Share (the “Share Repurchase”).

Extended Stay America, Inc Institutional Sentiment

Latest Security and Exchange filings show 109 investors own Extended Stay America, Inc. The institutional ownership in Q3 2015 is high, at 104.38% of the outstanding shares. This is increased by 55366296 the total institutional shares. 209499892 were the shares owned by these institutional investors. In total 25 funds opened new Extended Stay America, Inc stakes, 47 increased stakes. There were 10 that closed positions and 31 reduced them.

3 managers had the stock in their top Ten. Notable investors are: Centerbridge Partners L.P., Simcoe Capital Management Llc, Blackstone Group L.P., Goldentree Asset Management Lp..

Raveneur Investment Group Lp is an institutional investor bullish on Extended Stay America, Inc, owning 60307 shares as of Q3 2015 for 0.34% of its portfolio. Steven Tananbaum Goldentree Asset Management Lp owns 787835 shares or 2.16% of its portfolio. NY Blackstone Group Lp have 2.57% of their stock portfolio for 47620730 shares. Further, Adi Capital Management Llc reported stake worth 3.95% of its US stock portfolio. The NY Centerbridge Partners Lp owns 47661591 shares. Extended Stay America, Inc is 46.47% of the manager’s US portfolio.

Business Profile

Extended Stay America, Inc. (Extended Stay) is an integrated owner/operator of company-branded hotels in North America. The Company operates in hotel operations segment. Its business operates in the extended stay lodging industry. It owns and operates approximately 630 hotels comprising over 69,400 rooms located in approximately 40 states across the United States and in Canada. It owns and operates its hotels under its core brand, Extended Stay America, which serves the mid-price extended stay segment. In addition, it owns and operates over three Extended Stay Canada hotels. It operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business. The Company’s extended stay hotels are designed to provide lodging or apartment accommodations.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

John Paulson’s Paulson & Co. Inc website.

Insitutional Activity: The institutional sentiment increased to 1.66 in 2016 Q2. Its up 0.42, from 1.24 in 2016Q1. The ratio is positive, as 14 funds sold all Extended Stay America Inc shares owned while 30 reduced positions. 18 funds bought stakes while 55 increased positions. They now own 197.88 million shares or 0.07% more from 197.73 million shares in 2016Q1.

Credit Suisse Ag holds 293,287 shares or 0% of its portfolio. Tiaa Cref Invest Mgmt Limited Com reported 2.84M shares or 0.03% of all its holdings. Echo Street Capital Mgmt Limited Liability Corporation last reported 0.77% of its portfolio in the stock. American Gp holds 2,375 shares or 0% of its portfolio. D E Shaw owns 259,784 shares or 0.01% of their US portfolio. Metropolitan Life Insurance Ny has invested 0% of its portfolio in Extended Stay America Inc (NYSE:STAY). Ladenburg Thalmann Fincl last reported 889 shares in the company. Great West Life Assurance Can has 0% invested in the company for 9,259 shares. Blackrock Advsr Ltd Liability Corp accumulated 42,631 shares or 0% of the stock. Credit Agricole S A reported 17,300 shares or 0% of all its holdings. Westpac Banking accumulated 148,400 shares or 0% of the stock. Ci Global Invests last reported 8.05 million shares in the company. Ubs Asset Mgmt Americas holds 0% or 65,397 shares in its portfolio. Bnp Paribas Arbitrage Sa last reported 0% of its portfolio in the stock. Jane Street Group Incorporated Ltd Liability Corporation has 0% invested in the company for 22,899 shares.

About 914,131 shares traded hands or 25.64% up from the average. Extended Stay America Inc (NYSE:STAY) has declined 6.83% since March 3, 2016 and is downtrending. It has underperformed by 15.17% the S&P500.

Extended Stay America, Inc. is an integrated owner/operator of company-branded hotels in North America. The company has a market cap of $2.77 billion. The Firm operates in hotel activities segment. It has a 25.25 P/E ratio. The Company’s business operates in the extended stay lodging industry.

Extended Stay America Inc (NYSE:STAY) Ratings Coverage

Out of 7 analysts covering Extended Stay America (NYSE:STAY), 2 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 29% are positive. $26 is the highest target while $14 is the lowest. The $18.50 average target is 32.62% above today’s ($13.95) stock price. Extended Stay America has been the topic of 11 analyst reports since August 3, 2015 according to StockzIntelligence Inc. M Partners downgraded the shares of STAY in a report on Thursday, January 14 to “Neutral” rating. As per Tuesday, July 21, the company rating was downgraded by Bank of America. The stock of Extended Stay America Inc (NYSE:STAY) earned “Buy” rating by Deutsche Bank on Wednesday, October 28. Deutsche Bank maintained Extended Stay America Inc (NYSE:STAY) on Friday, July 31 with “Buy” rating. The stock of Extended Stay America Inc (NYSE:STAY) has “Outperform” rating given on Monday, August 3 by Robert W. Baird. The firm earned “Neutral” rating on Wednesday, August 17 by Citigroup. The firm has “Neutral” rating by Goldman Sachs given on Monday, September 26.

More important recent Extended Stay America Inc (NYSE:STAY) news were published by: Businesswire.com which released: “Extended Stay America Announces Secondary Offering and Repurchase of Paired Shares” on September 29, 2016, also Prnewswire.com published article titled: “Extended Stay America Announces Resignation Of Chief Marketing Officer”, Businesswire.com published: “Extended Stay America, Inc. Announces Launch of New Credit Facilities” on August 05, 2016. More interesting news about Extended Stay America Inc (NYSE:STAY) was released by: Forbes.com and their article: “Ex-Dividend Reminder: Mondelez International, McCormick and Extended Stay America” with publication date: December 28, 2015.

According to Zacks Investment Research, “Extended Stay America, Inc. owns and operates hotels under the core brand, Extended Stay America(R). It is the owner/operator of company-branded hotels in North America. The Company offers guest rooms, dining services, on-site laundry, local phone calls, personalized voicemail, pools, fitness centers, and pet friendly accommodations. Extended Stay America, Inc. is headquartered in Charlotte, North Carolina.”

STAY Company Profile

Extended Stay America, Inc. (Extended Stay), incorporated on July 8, 2013, is an integrated owner/operator of company-branded hotels in North America. The Firm operates in hotel activities segment. The Company’s business operates in the extended stay lodging industry. The Firm owns and operates approximately 630 hotels comprising over 69,400 rooms located in approximately 40 states across the United States and in Canada. It owns and operates its hotels under its core brand, Extended Stay America, which serves the mid-price extended stay segment. In addition, the Company owns and operates over three Extended Stay Canada hotels. The Firm operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business.

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