Service Properties Trust (NASDAQ:SVC) Stock Price Down 5.8% on Analyst Downgrade

Service Properties Trust (NASDAQ:SVC) traded down 5.8% during trading on Monday after B. Riley lowered their price target on the stock from $9.00 to $8.00. B. Riley currently has a buy rating on the stock. Service Properties Trust traded as low as $4.37 and last traded at $4.39. 422,760 shares were traded during mid-day trading, a decline of 61% from the average session volume of 1,076,348 shares. The stock had previously closed at $4.66.

Hedge Funds Weigh In On Service Properties Trust

A number of hedge funds have recently modified their holdings of SVC. Capital Management Corp VA boosted its holdings in Service Properties Trust by 11.9% during the 1st quarter. Capital Management Corp VA now owns 3,630,775 shares of the real estate investment trust’s stock valued at $24,617,000 after acquiring an additional 387,465 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of Service Properties Trust by 3.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,798,087 shares of the real estate investment trust’s stock valued at $23,896,000 after buying an additional 91,272 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Service Properties Trust by 3.6% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,436,369 shares of the real estate investment trust’s stock valued at $12,522,000 after buying an additional 85,791 shares during the period. Norges Bank purchased a new position in shares of Service Properties Trust in the 4th quarter valued at about $9,333,000. Finally, Principal Financial Group Inc. boosted its stake in shares of Service Properties Trust by 5.4% in the 1st quarter. Principal Financial Group Inc. now owns 910,440 shares of the real estate investment trust’s stock valued at $6,173,000 after buying an additional 46,417 shares during the period. 77.62% of the stock is currently owned by hedge funds and other institutional investors.

Service Properties Trust Stock Down 6.4 %

The firm has a 50 day moving average price of $5.26 and a 200-day moving average price of $6.14. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 3.58. The firm has a market cap of $722.71 million, a PE ratio of -5.19 and a beta of 2.21.

Service Properties Trust (NASDAQ:SVC) last released its earnings results on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). Service Properties Trust had a negative net margin of 7.29% and a negative return on equity of 11.01%. The company had revenue of $512.95 million during the quarter, compared to analyst estimates of $509.33 million. During the same period in the previous year, the firm posted $0.58 EPS. Research analysts forecast that Service Properties Trust will post 1.37 EPS for the current fiscal year.

Service Properties Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Monday, July 22nd will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 18.35%. The ex-dividend date is Monday, July 22nd. Service Properties Trust’s dividend payout ratio (DPR) is -95.24%.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service.