Service Properties Trust (NASDAQ:SVC) Hits New 12-Month Low – Here’s Why

Shares of Service Properties Trust (NASDAQ:SVC) hit a new 52-week low on Monday . The stock traded as low as $3.43 and last traded at $3.43, with a volume of 1650607 shares. The stock had previously closed at $3.62.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company dropped their target price on shares of Service Properties Trust from $5.00 to $4.00 and set an “underweight” rating for the company in a research report on Friday, September 13th. B. Riley lowered their target price on shares of Service Properties Trust from $9.00 to $8.00 and set a “buy” rating for the company in a research note on Friday, August 9th.

Service Properties Trust Stock Performance

The company has a debt-to-equity ratio of 3.98, a quick ratio of 0.01 and a current ratio of 0.01. The stock has a 50 day moving average of $4.46 and a 200 day moving average of $5.09. The stock has a market capitalization of $558.61 million, a P/E ratio of -3.93 and a beta of 2.20.

Service Properties Trust (NASDAQ:SVC) last issued its quarterly earnings data on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.94). Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. The firm had revenue of $512.95 million during the quarter, compared to the consensus estimate of $509.33 million. During the same quarter in the prior year, the business earned $0.58 earnings per share. Equities analysts predict that Service Properties Trust will post 1.21 EPS for the current year.

Service Properties Trust Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 14th. Shareholders of record on Monday, October 28th will be paid a dividend of $0.01 per share. The ex-dividend date is Monday, October 28th. This represents a $0.04 annualized dividend and a yield of 1.19%. Service Properties Trust’s payout ratio is -4.76%.

Institutional Investors Weigh In On Service Properties Trust

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SVC. PNC Financial Services Group Inc. raised its stake in shares of Service Properties Trust by 30.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 13,553 shares of the real estate investment trust’s stock worth $116,000 after buying an additional 3,135 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its holdings in Service Properties Trust by 54.6% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 322,544 shares of the real estate investment trust’s stock valued at $2,187,000 after acquiring an additional 113,878 shares during the last quarter. Principal Financial Group Inc. boosted its position in shares of Service Properties Trust by 5.4% during 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 purchasing an additional 46,417 shares in the last quarter. Daiwa Securities Group Inc. grew its stake in shares of Service Properties Trust by 7.1% in the 1st quarter. Daiwa Securities Group Inc. now owns 54,003 shares of the real estate investment trust’s stock worth $366,000 after purchasing an additional 3,601 shares during the last quarter. Finally, FinTrust Capital Advisors LLC raised its holdings in shares of Service Properties Trust by 137.9% in the 1st quarter. FinTrust Capital Advisors LLC now owns 5,928 shares of the real estate investment trust’s stock worth $40,000 after purchasing an additional 3,436 shares in the last quarter. Institutional investors own 77.62% of the company’s stock.

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.