Service Properties Trust (NASDAQ:SVC) Reaches New 52-Week Low After Earnings Miss

Service Properties Trust (NASDAQ:SVC)’s stock price reached a new 52-week low during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $4.81 and last traded at $4.83, with a volume of 1047619 shares traded. The stock had previously closed at $5.18.

The real estate investment trust reported ($0.45) 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 firm had revenue of $512.95 million for the quarter, compared to analyst estimates of $509.33 million. During the same period in the previous year, the company earned $0.58 EPS.

Service Properties Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 15th. Investors of record on Monday, July 22nd will be given a $0.20 dividend. The ex-dividend date of this dividend is Monday, July 22nd. This represents a $0.80 annualized dividend and a yield of 17.17%. Service Properties Trust’s payout ratio is -95.24%.

Analyst Upgrades and Downgrades

Separately, B. Riley lowered their price target on Service Properties Trust from $9.00 to $8.00 and set a “buy” rating for the company in a research report on Friday.

Institutional Trading of Service Properties Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in SVC. Norges Bank purchased a new position in shares of Service Properties Trust during the fourth quarter worth about $9,333,000. Capital Management Corp VA boosted its stake in shares of Service Properties Trust by 14.8% during the 4th quarter. Capital Management Corp VA now owns 3,243,310 shares of the real estate investment trust’s stock worth $27,698,000 after acquiring an additional 417,225 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Service Properties Trust by 3.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,798,087 shares of the real estate investment trust’s stock worth $23,896,000 after acquiring an additional 91,272 shares in the last quarter. Texas Permanent School Fund Corp boosted its stake in shares of Service Properties Trust by 1.7% during the 1st quarter. Texas Permanent School Fund Corp now owns 145,080 shares of the real estate investment trust’s stock worth $984,000 after acquiring an additional 2,476 shares in the last quarter. Finally, Van ECK Associates Corp raised its position in shares of Service Properties Trust by 19.7% during the 4th quarter. Van ECK Associates Corp now owns 23,113 shares of the real estate investment trust’s stock worth $197,000 after purchasing an additional 3,800 shares during the last quarter. Institutional investors and hedge funds own 77.62% of the company’s stock.

Service Properties Trust Price Performance

The company has a debt-to-equity ratio of 3.58, a quick ratio of 0.04 and a current ratio of 0.04. The stock has a market capitalization of $772.44 million, a price-to-earnings ratio of -5.49 and a beta of 2.21. The company has a 50-day moving average of $5.27 and a 200-day moving average of $6.18.

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.