Service Properties Trust (NASDAQ:SVC) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Service Properties Trust from “hold” to “strong sell.” Other analysts’ views were mixed, with MarketBeat reporting an average “hold” rating and an average price target of $11.60.
• SVC opened at $5.40, down 1.3%, and was trading closer to its 52-week low of $4.99 than its high of $12.15.
• The REIT reported a quarterly loss of $0.68 per share, missing analyst expectations of a $0.29 loss, despite revenue of $399.52 million exceeding the $318.62 million consensus estimate.

Service Properties Trust (NASDAQ:SVC - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

SVC has been the subject of several other research reports. Loop Capital set a $9.00 price target on shares of Service Properties Trust in a research report on Friday, October 2nd. Wall Street Zen raised shares of Service Properties Trust from a "sell" rating to a "hold" rating in a research report on Saturday, November 7th. Ladenburg Thalmann & Co. Inc. lowered their price objective on shares of Service Properties Trust from $11.25 to $9.00 and set a "buy" rating on the stock in a research report on Friday, November 6th. Finally, Weiss Ratings cut shares of Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, October 8th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $11.60.

Service Properties Trust Stock Down 1.3%

SVC stock opened at $5.40 on Tuesday. The stock's fifty day simple moving average is $6.38 and its two-hundred day simple moving average is $8.17. The company has a current ratio of 0.02, a quick ratio of 0.02 and a debt-to-equity ratio of 2.39. Service Properties Trust has a 1-year low of $4.99 and a 1-year high of $12.15. The stock has a market cap of $700.97 million, a P/E ratio of 3.01 and a beta of 1.78.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The real estate investment trust reported ($0.68) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.39). The business had revenue of $399.52 million during the quarter, compared to the consensus estimate of $318.62 million. Service Properties Trust had a negative net margin of 29.31% and a negative return on equity of 69.76%. Analysts expect that Service Properties Trust will post 1.17 EPS for the current year.

Institutional Investors Weigh In On Service Properties Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of SVC. Yorkville Advisors Global LP bought a new position in shares of Service Properties Trust in the first quarter worth $28,333,000. Bank of New York Mellon Corp purchased a new position in shares of Service Properties Trust in the second quarter valued at $3,691,000. Public Employees Retirement System of Ohio bought a new stake in shares of Service Properties Trust during the second quarter valued at about $1,153,000. Headlands Technologies LLC bought a new stake in Service Properties Trust during the 2nd quarter worth approximately $543,000. Finally, Arizona State Retirement System bought a new position in Service Properties Trust in the 2nd quarter valued at $279,000. Institutional investors own 77.62% of the company's stock.

Service Properties Trust Company Profile

Service Properties Trust NASDAQ: SVC is a real estate investment trust that owns hotels and service-focused retail properties. Its hotel portfolio includes lodging properties operated by third-party management companies and affiliated with a range of hotel brands. Its retail properties are generally leased to businesses that provide services to travelers and local customers. The trust's properties are located primarily in the United States. Service Properties Trust was formerly known as Hospitality Properties Trust, reflecting its earlier focus on hotels, before adopting its current name as its portfolio expanded to include service-focused retail real estate.

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