Service Properties Trust (NASDAQ:SVC) Reaches New 1-Year Low – Should You Sell?

Service Properties Trust (NASDAQ:SVC)’s stock price reached a new 52-week low on Monday . The company traded as low as $3.15 and last traded at $3.15, with a volume of 162 shares. The stock had previously closed at $3.20.

Analyst Ratings Changes

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

Service Properties Trust Stock Performance

The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 3.98. The stock has a market capitalization of $491.03 million, a PE ratio of -2.43 and a beta of 2.23. The firm’s fifty day moving average is $4.32 and its 200-day moving average is $4.98.

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 for the quarter, missing the consensus estimate of $0.49 by ($0.94). The firm had revenue of $512.95 million during the quarter, compared to analyst estimates of $509.33 million. Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. During the same period in the prior year, the firm earned $0.58 earnings per share. As a group, research analysts anticipate that Service Properties Trust will post 1.21 earnings per share for the current year.

Service Properties Trust Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 14th. Shareholders of record on Monday, October 28th will be issued a dividend of $0.01 per share. The ex-dividend date is Monday, October 28th. This represents a $0.04 dividend on an annualized basis and a yield of 1.35%. Service Properties Trust’s payout ratio is currently -3.28%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of SVC. Capital Management Corp VA boosted its stake in shares of Service Properties Trust by 9.6% during the 3rd quarter. Capital Management Corp VA now owns 5,174,563 shares of the real estate investment trust’s stock worth $23,596,000 after acquiring an additional 453,944 shares in the last quarter. Whitebox Advisors LLC boosted its position in Service Properties Trust by 167.7% during the second quarter. Whitebox Advisors LLC now owns 610,602 shares of the real estate investment trust’s stock worth $3,138,000 after acquiring an additional 382,502 shares during the last quarter. AQR Capital Management LLC grew its position in shares of Service Properties Trust by 65.3% in the second quarter. AQR Capital Management LLC now owns 734,572 shares of the real estate investment trust’s stock valued at $3,607,000 after purchasing an additional 290,208 shares during the period. GSA Capital Partners LLP lifted its holdings in shares of Service Properties Trust by 246.0% during the 1st quarter. GSA Capital Partners LLP now owns 152,710 shares of the real estate investment trust’s stock worth $1,035,000 after acquiring an additional 108,575 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings 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 purchasing an additional 85,791 shares during the last quarter. Institutional investors and hedge funds own 77.62% of the company’s stock.

Service Properties Trust Company Profile

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.